Prominent investor Ray Dalio has predicted that Bitcoin is unlikely to be adopted as the reserve currency by central banks. "I doubt that any central bank will take it on as a reserve currency," he said.
Bitcoin will struggle to gain traction with central banks due to its lack of privacy, the billionaire argues.
Furthermore, Dalio has suggested that Bitcoin's code could end up being "broken" in the future, a claim that has ruffled the feathers of numerous Bitcoin advocates.
That said, the legendary investor claims that BTC is "worth paying attention to."
Dalio's Bitcoin holdings
As reported by U.Today, the legendary hedge fund manager previously endorsed a 15% allocation to Bitcoin during a July appearance on the "Master Investor" podcast.
In his most recent post, he has stressed that he owns "some Bitcoin," but he is not willing to go overboard with this allocation.
Dalio first purchased the original cryptocurrency back in May 2021 after criticizing it in the past. The founder of Bridgewater Associates previously claimed that Bitcoin was merely a tool for speculation, arguing that it had no intrinsic value. In September 2017, he told former Business Insider CEO Henry Blodget that Bitcoin had "all the basic ingredients of a speculative bubble."
The legendary investor ended up buying Bitcoin during the 2021 bull run due to concerns about fiat currency devaluation. This was seen as a major endorsement by the investment community back then. However, he is yet to turn into a full-blown Bitcoin cheerleader like other former skeptics of the likes of Strategy's Michael Saylor.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team