Ray Dalio Owns Bitcoin. He’s Still Nervous About Quantum Computing, Central Bank Adoption

Core Viewpoint - Bitcoin has inherent disadvantages as a store of value compared to gold, as highlighted by Ray Dalio, founder of Bridgewater, emphasizing the reliance on external networks for transaction processing [1][3]. Group 1: Bitcoin vs. Gold - Dalio expressed a preference for gold over Bitcoin, citing concerns about Bitcoin's long-term viability and its potential use by central banks for international trade [3]. - Gold's advantage lies in its physical form, allowing it to be held without dependence on external entities, while Bitcoin requires a network for transactions [6]. - The price of gold has reached record highs this year due to fears of currency debasement, which Dalio has previously warned investors to hedge against [2]. Group 2: Investment Insights - Dalio has allocated a "small percentage" of his portfolio to Bitcoin, estimating it to be around 1% of his overall wealth, while suggesting a 15% allocation to Bitcoin and gold for investors [5]. - The Czech National Bank has made its first investment in crypto, amounting to $100 million across Bitcoin, stablecoins, and tokenized bank deposits, indicating a growing institutional interest in digital assets [4]. Group 3: Concerns about Bitcoin - Dalio raised concerns about Bitcoin's potential to be tracked and controlled, especially with advancements in quantum computing, which could pose risks to its security [3][4]. - The transparency of Bitcoin transactions on a public ledger makes it relatively easy to trace once linked to an identity, although coin mixers can obscure transaction flows [5].