Billionaire Rey Deleo isn’t shy when it comes to commenting on Bitcoin. One thing he repeats time and again is not comparing Bitcoin to gold.
The founder of Bridgewater Associates appeared on the latest “All In Podcast” on March 3 and offered a detailed critique of Bitcoin, arguing that investors should stop comparing it to gold.
While Dalio holds Bitcoin (BTC), about 1% of his portfolio for diversification, he believes it lacks gold in several key areas.
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Dalio’s argument ultimately comes down to what he defines as “money.”
“Money is a loan in mechanism,” he said. He said that keeping a fiat currency is keeping a promise from a central authority. And when debt levels get too high, central banks have the power to print more money.
That is why he prefers possessions with physical boundaries.
“I want a property that has some physical limitations.” Dalio said. “Gold is the only long-term historical asset for a reason.”
Gold, he argues, is unprintable, universally recognized, and can be transferred between countries without relying on a counterparty’s pledge.
Central banks seem to agree. In recent years, Dalio indicated that they have steadily accumulated gold reserves amid economic and geopolitical uncertainty.
Dalio’s biggest concern? transparency
“Bitcoin has no privacy. Any transaction can be monitored and directly, perhaps, controlled.” he said.
He added that central banks are unlikely to sell an asset that operates on a fully public ledger.
He also raised concerns about quantum computing potentially threatening Bitcoin’s cryptographic security in the future.
Beyond the technology, Dalio pointed to the dynamics of ownership.
“Bitcoin has a very high correlation with technical stocks. So from an ownership perspective, supply and demand can be affected if someone jumps into a field and sells what they own.”
In his view, Bitcoin remains a relatively small and, in some ways, controllable market.
Interestingly, DeLeo’s comments come at a time when gold itself is faltering.
On the fifth day of the war between the United States and Iran, the price of gold fell by 3.07 percent to 168 dollars, which fell to 5128.58 dollars per ounce. Bitcoin, meanwhile, was trading at $68,707.30, down just 0.7% in the past 24 hours.
