According to Dalio, there are important distinguishing features between bitcoin and gold, and these features push institutions toward the latter.
Billionaire investor and founder of leading hedge fund, Bridgewater Associates, Ray Dalio has once again criticized Bitcoin (BTC). This time, Dalio rejected the comparison between cryptocurrency and gold, depriving the digital asset of its safe haven narrative.
During an interview with the All-In Podcast, the founder of Bridgewater insisted that BTC did not play the role of a safe haven like gold. He accepted that bitcoin as a form of money has a lot of interest, but faces long-term threats. Dalio’s comments come as financial assets react to geopolitical tensions amid the ongoing US-Iran crisis.
Dalio denies comparing BTC to gold
According to Dalio, there are important distinguishing features between bitcoin and gold. The former has no privacy; Transactions can be controlled and indirectly controlled by entities. Such characteristics, according to the billionaire, make central banks and large institutions reluctant to buy and hold it.
On the other hand, these institutions are constantly buying and holding gold because the precious metal is widely considered a store of value and an inflation hedge. Dalio stressed that the precious metal is not an asset that can be speculated, contrary to what many believe. In fact, he noted, gold is the established form of money and the second largest reserve currency in central banks.
Moreover, gold does not face the same threats as Bitcoin. Dalio noted growing concerns about the potential impact of quantum computing on the Bitcoin network. So, despite a lot of interest, especially from individuals and being considered as an alternative currency, Bitcoin has a relatively small and controlled market compared to gold.
It’s worth noting that Dalio has developed something of a love-hate relationship with BTC over the years. When there were critics, the investor started investing in cryptocurrency in 2021 and even got into it. However, he believes that gold is the ultimate financial asset and that BTC is not going to come close.
The impact of gold is more intense in the conflict between America and Iran
Although Dalio declined to comment on bitcoin’s safe haven, the digital asset has fared relatively well since the start of the US-Iran conflict. On March 3, the day Dalio made the statement, gold lost 6% during after-hours trading, falling from $5,377 to $5,039, according to TradingView data. On the other hand, BTC is down just 3.7% over the same period.
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A comparison of the price movements of both assets that day directly challenges Dalio’s statement, as gold was more affected by the crisis than it was supposed to protect investors from.
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