Billionaire investor Ray Dalio reaffirmed his skepticism toward Bitcoin’s (CRYPTO: BTC) potential as a reserve currency on Thursday, while revealing that only a small portion of his portfolio is allocated to the digital asset.
Dalio Highlights Quantum Threat For BTC
During an interview with CNBC, Dalio, founder of Bridgewater Associates, revealed that he has “forever” kept roughly 1% of his portfolio in Bitcoin.
When asked if he’d like to add more, Dalio raised concerns about its potential as a reserve currency.
“It’s not going to be a reserve currency for major countries because it can be tracked, and it could be conceivably with quantum computing controlled, hacked, and so on and so forth,” he argued.
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Dalio preferred gold over Bitcoin, deeming the yellow metal as the “most popular non-fiat currency.”
Dalio previously suggested a 15% portfolio allocation to Bitcoin or gold, citing potential currency devaluation risks and mounting U.S. debt concerns.
Bitcoin’s Privacy A Flaw?
This isn’t the first time Dalio has expressed skepticism about central banks considering Bitcoin as a reserve currency.
Last month, he argued that Bitcoin doesn’t offer privacy because every transaction on its public ledger is public. He also speculated that Bitcoin’s code could eventually be “broken.” These narratives, however, were dismissed as "hand-waved FUD” by some Bitcoiners.
As for the quantum threat, Bitcoin technologist Jameson Lopp estimates a "greater than 50% chance" that it will take at least another decade before a quantum computer, powerful enough to break Bitcoin’s cryptography, becomes a reality. Some other experts believe the threat is “lightyears away.”
Price Action: At the time of writing, BTC was exchanging hands at $85,824.79, down 7% in the last 24 hours, according to data from Benzinga Pro.
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