Bitcoin News Today: Traceability and Quantum Risks Keep Dalio's Bitcoin Stake at 1%

Bridgewater's Ray Dalio Holds 1% in Bitcoin Amid Quantum and Traceability Concerns

Billionaire investor Ray Dalio, founder of Bridgewater Associates, has maintained a roughly 1% allocation to Bitcoin in his portfolio for years, but he continues to express skepticism about the cryptocurrency's potential as a global reserve asset. During a recent CNBC interview, Dalio reiterated his cautious stance, citing structural challenges, including Bitcoin's traceability and vulnerability to future quantum computing advancements.

Dalio emphasized that while Bitcoin has demonstrated resilience-remaining unhacked and operational since its inception-he doubts major governments will adopt it as a reserve currency. "It can be tracked, and it could be, conceivably with quantum computing, controlled, hacked, and so on," he said, noting that sovereign states are unlikely to rely on a financial system with permanent, public transaction records. This perspective aligns with prior warnings from Dalio, who in 2021 suggested governments could "kill" Bitcoin if it gained widespread adoption.

The hedge fund mogul also highlighted Bitcoin's technical limitations compared to gold, which he prefers as a hedge against currency debasement. "The advantage of gold is that it's an asset you can hold, and you're not dependent on someone to provide it," Dalio stated, underscoring his preference for physical assets over digital ones. Despite his reservations, he has recommended investors allocate up to 15% of their portfolios to Bitcoin or gold, acknowledging both as "hard currencies" resistant to government-driven devaluation.

Quantum computing risks, though not an immediate threat, have gained attention in the crypto industry. Blockchain analytics firm Chainalysis estimates that quantum breakthroughs could jeopardize Bitcoin's security within 10–15 years. Dalio's concerns echo broader industry debates about the need for proactive measures to safeguard cryptographic systems against future technological advancements according to industry analysis.

The billionaire's comments come as Bitcoin faces a broader market correction, trading below $86,500 as of late November 2025-a 32% decline from its October highs. Retail investors, who account for roughly 75% of spot-Bitcoin ETF holdings, have borne the brunt of recent outflows, with $4 billion in redemptions recorded in November alone. Meanwhile, institutional ownership has risen to 28%, reflecting a shift in Bitcoin's investor base since the approval of U.S. spot ETFs in early 2024 .

Dalio's 1% allocation has remained consistent despite market volatility. "I've had it forever, like 1% of my portfolios," he said, framing his position as a long-term bet rather than an endorsement of Bitcoin's broader utility. His views contrast with those of some tech leaders, including Binance founder Changpeng "CZ" Zhao, who have advocated for greater institutional adoption of crypto according to industry reports.

As governments and central banks explore digital assets-such as the Czech National Bank's recent $100 million crypto test portfolio-the debate over Bitcoin's role in global finance continues according to financial analysis. For now, Dalio's cautious approach reflects a broader macroeconomic outlook that prioritizes stability and tangible assets in an era of rising debt and geopolitical uncertainty.