Billionaire investor Ray Dalio says he holds only a “small percentage” of Bitcoin—about 1% of his portfolio—even as he warns that today’s economic environment shares “striking” similarities with the bubbles of 1929 and 2008.
Speaking on CNBC’s Squawk Box, the Bridgewater Associates founder said he has maintained a modest allocation to Bitcoin for years but still believes the cryptocurrency faces major structural hurdles. He argued that Bitcoin is too transparent, too vulnerable to future technological risks, and too limited to function as a global reserve asset.
“It’s not going to be a reserve currency for major countries because it can be tracked,” Dalio said. He also raised concerns about quantum computing, suggesting it could one day “control or hack” digital assets.
His comments came as Bitcoin briefly fell below $90,000 amid macro uncertainty and delayed U.S. economic data—a reminder, Dalio said, of how sensitive digital assets remain to global shocks.
Despite his caution, Dalio acknowledged Bitcoin has proven durable over the past decade. “Bitcoin has proven itself. It hasn’t been hacked,” he previously said on the Lex Fridman Podcast. Binance founder CZ even hinted he “might have contributed” to Dalio’s interest in holding BTC.
But Dalio remains far more concerned about the global economy than crypto markets.
In a separate discussion this week, Dalio warned that the current economic cycle mirrors the debt-driven bubbles of 1929 and 2008. The only major difference, he noted, is who owns the debt today.
Across all three eras, Dalio said, the U.S. was burdened by massive liabilities. Today’s national debt exceeds $38 trillion, according to Treasury data—dramatically higher than the inflation-adjusted levels seen in previous crises.
“When the bill comes due and debt assets aren’t as appealing as the alternatives, some sort of monetization is inevitable,” Dalio said, suggesting that policies like money-printing, stimulus, and a return to quantitative easing could be unavoidable.
Dalio has long argued that rising debt, political polarization, and shifting global power dynamics create an environment similar to past financial bubbles. Earlier this month, he warned that the Federal Reserve ending quantitative tightening could “pump stimulus into a bubble.”
As Wall Street digests mixed market moves—with the S&P 500 and Nasdaq edging higher while the Dow slipped—Dalio continues to urge investors to stay cautious.
Whether discussing Bitcoin’s long-term uncertainty or the massive debt challenges facing the U.S., Ray Dalio remains one of the few voices drawing direct comparisons between today’s economy and some of history’s most dangerous financial periods.