Billionaire Ray Dalio Says Bitcoin Unlikely to Become Central Bank Reserve

Billionaire investor **Ray Dalio**, founder of Bridgewater Associates, reiterated in a December 20, 2025, podcast interview with Nikhil Kamath that Bitcoin, despite its limited supply and perception as a store of wealth, is unlikely to be held significantly by central banks.

Dalio acknowledged Bitcoin as “a form of money” but highlighted key barriers:

– **Transparency and traceability** — Public blockchain transactions allow governments to monitor and potentially interfere, unlike physical gold which resists control once held.
– **Government intervention risks** — Authorities could restrict or disrupt Bitcoin holdings.
– **Technical vulnerabilities** — Future risks like hacking or quantum computing threats.

He contrasted this with gold’s historical role as a neutral, uncontrollable reserve asset preferred by central banks for privacy and stability.

Dalio personally holds a small Bitcoin allocation (previously described as ~1% of his portfolio) but favors gold as a superior hedge against fiat devaluation amid rising global debt.

Crypto advocates counter that transparency is a strength, enabling auditability absent in traditional systems, while Bitcoin’s decentralization limits full government control.

Dalio’s views align with ongoing institutional caution, as no major central bank has adopted Bitcoin as a core reserve despite growing private-sector interest via ETFs.