Bitcoin News Today: As Institutions Bet Big on Bitcoin, Dalio Sticks to Gold and Skepticism

Ray Dalio, the influential billionaire investor and founder of Bridgewater Associates, has once again reaffirmed his skepticism toward Bitcoin, maintaining a mere 1% allocation in his portfolio and arguing that the cryptocurrency cannot serve as a reserve currency for major nations. In a recent CNBC interview, Dalio cited Bitcoin's trackability and vulnerability to quantum computing as key limitations, stating, "I think the problem with Bitcoin is that it's not going to be a reserve currency for major countries because it can be tracked, and it could be conceivably controlled, hacked, and so on" according to a report. His remarks, which align with previous critiques, have reignited debates about Bitcoin's role in the global financial system amid a broader sell-off in crypto markets.

Dalio's concerns are rooted in both technical and geopolitical risks. He emphasized that Bitcoin's transparent ledger makes it unsuitable for the anonymity required of traditional reserve assets, while quantum computing advancements could one day break its cryptographic security. "There is this possibility" of quantum attacks, he warned, referring to future computing power. This argument gained traction as Bitcoin prices dipped below $87,000 in late November 2025, partly driven by retail panic over quantum risks and a $1.3 billion sell-off by early adopter Owen Gunden.

The quantum computing threat remains a contentious topic among experts. While Dalio predicts a near-term risk, Bitcoin pioneer Adam Back argues that quantum-safe solutions are already emerging and that meaningful threats are decades away. "Bitcoin can add over time... and be quantum ready long before cryptographically relevant quantum computers arrive," Back countered according to a report. Meanwhile, industry analysts have pushed back on the narrative, noting that Bitcoin's SHA-256 algorithm is more robust than the RSA encryption used by traditional banks according to analysis.

Despite Dalio's reservations, other institutional players continue to embrace Bitcoin. MicroStrategy, for instance, has expanded its Bitcoin holdings to 640,808 coins, valued at approximately $70 billion, through aggressive capital-raising strategies and financial engineering. The company's "42/42" plan-doubling its initial ambition-reflects a stark contrast to Dalio's cautious stance, highlighting diverging views on Bitcoin's utility as both a store of value and a strategic asset.

The debate over Bitcoin's future as a reserve currency also intersects with broader macroeconomic concerns. Dalio has repeatedly warned about escalating global debt levels and the fragility of fiat systems, yet he advocates for physical gold over digital assets. "Gold does not depend on any digital network or issuer," he argued, framing it as a more reliable hedge against political instability and inflation. This perspective contrasts with growing efforts by governments, including the U.S., to explore Bitcoin as a reserve asset, exemplified by the recent Bitcoin for America Act, which allows tax payments in Bitcoin.

As the crypto market grapples with volatility and regulatory uncertainty, Dalio's skepticism underscores a fundamental divide in assessing Bitcoin's long-term viability. While quantum risks and structural limitations remain valid concerns, the asset's resilience-evidenced by its decade-long resistance to hacking-continues to attract both critics and proponents. The coming years will likely see intensified discussions on balancing innovation with security, as policymakers and investors navigate the evolving landscape of digital finance.