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Bitcoin News Update: Dalio Limits Bitcoin Holdings to 1% Due to Traceability and Quantum Threats

Bitcoin News Update: Dalio Limits Bitcoin Holdings to 1% Due to Traceability and Quantum Threats

Bitget-RWA2025/11/21 01:56
By:Bitget-RWA

- Ray Dalio maintains a 1% Bitcoin allocation but doubts its viability as a global reserve asset due to traceability and quantum computing risks. - He favors gold over Bitcoin for its physical tangibility and resistance to digital vulnerabilities, while advising up to 15% portfolio exposure to "hard currencies." - Quantum threats and recent market corrections (32% drop from October 2025 highs) highlight Bitcoin's instability, with institutional ownership rising to 28% amid ETF adoption. - Dalio's cautious

Bridgewater’s Ray Dalio Allocates 1% to

Amid Ongoing Concerns Over Quantum Technology and Traceability

Ray Dalio, the billionaire founder of Bridgewater Associates, has consistently kept about 1% of his investment portfolio in Bitcoin for several years, yet he remains doubtful about its viability as a global reserve currency. In a recent appearance on CNBC, Dalio once again voiced his reservations,

, such as Bitcoin’s traceability and the potential risks posed by advances in quantum computing.

Dalio pointed out that although Bitcoin has proven durable—operating securely and without breaches since it launched—he is skeptical that leading governments will ever use it as a reserve asset. “It’s traceable, and with the rise of quantum computing, it could theoretically be manipulated, hacked, or controlled,” he commented,

for sovereign nations to trust a system where all transactions are permanently and publicly recorded. This view is consistent with from 2021, when he warned that governments might “eliminate” Bitcoin if it became too widely adopted.

Bitcoin News Update: Dalio Limits Bitcoin Holdings to 1% Due to Traceability and Quantum Threats image 0
The hedge fund leader also drew attention to Bitcoin’s technical shortcomings compared to gold, which he favors as a safeguard against currency devaluation. “Gold’s strength lies in the fact that you can physically possess it, without needing a third party,” Dalio remarked, toward tangible assets over digital ones. Still, he has suggested that investors could allocate as much as 15% of their portfolios to Bitcoin or gold, that are less susceptible to government-induced devaluation.

While quantum computing is not an immediate danger, its potential impact has become a topic of concern within the crypto sector.

that breakthroughs in quantum technology could threaten Bitcoin’s security within the next 10 to 15 years. Dalio’s apprehensions mirror ongoing industry discussions about the importance of preparing cryptographic systems for future technological shifts .

The billionaire’s remarks come at a time when Bitcoin is undergoing a significant market pullback,

—a drop of 32% from its peak in October. Retail investors, who make up about 75% of spot Bitcoin ETF ownership, have been most affected by recent withdrawals, in November alone. At the same time, institutional investors now hold 28%, indicating a shift in Bitcoin’s investor profile since U.S. spot ETFs were approved in early 2024.

Dalio’s 1% Bitcoin position has stayed steady despite market swings. “I’ve always had it, around 1% of my holdings,” he explained,

rather than a full endorsement of Bitcoin’s broader use. His perspective differs from that of some tech industry figures, such as Binance founder Changpeng “CZ” Zhao, who have pushed for more institutional involvement in crypto .

As central banks and governments experiment with digital assets—like the Czech National Bank’s recent $100 million crypto

portfolio—the debate over Bitcoin’s future in the global financial system remains active . For now, Dalio’s prudent stance reflects a broader economic outlook that favors security and physical assets amid increasing debt and geopolitical instability.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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