Ray Dalio Dismisses Bitcoin’s Safe-Haven Narrative, Rejects Comparison to Gold

According to Dalio, there are important distinguishing features between bitcoin and gold, and these features ultimately pressure institutions.

Billionaire investor and founder of the leading hedge fund, Bridgewater Associates, Ray Dalio, has also criticized bitcoin (BTC). In this case, Dalio rejected the comparison between cryptocurrency and gold, depriving the digital asset of its safe haven narrative.

During an interview with the All-In Podcast, the founder of Bridgewater emphasized that BTC did not play the role of a safe haven like gold. He acknowledged that bitcoin has been getting a lot of attention as a form of currency but faces long-term threats. Dalio’s comments come as the financial asset reacts to political tensions amid the ongoing US-Iran crisis.

Dalio Rejects Comparison of BTC to Gold

According to Dalio, there are important distinguishing features between bitcoin and gold. The former has no privacy; Transactions can be monitored and indirectly controlled by businesses. Such qualities, in the billionaire’s view, would make big banks and big institutions reluctant to buy and hold it.

On the other hand, these institutions always buy and hold gold because the precious metal is widely viewed as a store of value and a hedge against inflation. Dalio highlighted that precious metal is not a speculative commodity, contrary to what many people have believed. In fact, he stated that gold is the most established currency and is the second largest currency held by central banks.

In addition, gold does not face the same threats as Bitcoin. Dalio spoke of growing concerns about the potential effects of quantum computing on the Bitcoin network. Therefore, despite receiving a lot of attention, especially from individuals, and being considered as an alternative currency, bitcoin still has a small and regulated market compared to gold.

It’s worth noting that Dalio has developed something of a love-hate relationship with BTC over the years. Once a critic, the investor began to embrace cryptocurrency in 2021 and even gained exposure to it. However, he believes that gold is the ultimate financial asset, and BTC is not close.

Gold Hits Hard by US-Iran Conflict

Despite Dalio dismissing the safe narrative of bitcoin, the digital asset has performed extremely well since the start of the US-Iran conflict. On March 3, the day Dalio spoke, gold lost 6% during trading, falling from $5,377 to $5,039, according to TradingView data. BTC, on the other hand, fell by just 3.7% during the same period.

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Comparing the price movements of both commodities that day directly challenges Dalio’s statements, as gold was heavily affected by the very crisis it is supposed to protect investors from.