Ray Dalio Highlights Bitcoin’s Code as Its Weakest Link

Bridgewater Founder Questions Bitcoin’s Long-Term Stability

Billionaire investor Ray Dalio, the founder of Bridgewater Associates, one of the world’s largest hedge funds, has raised fresh concerns about Bitcoin’s underlying code and its long-term sustainability as a form of money. Speaking on the Master Investor Podcast, Dalio reflected on Bitcoin’s growing influence in the financial world but questioned its legitimacy as a true currency due to potential vulnerabilities in its technical foundation.

Dalio acknowledged Bitcoin’s inherent strengths, noting its limited supply and global accessibility as key factors that make it both a store of value and a medium of exchange. “It is limited in its supply. It has certain transaction benefits very easily all around the world. You can transact in it. And so it has those elements,” he explained. However, Dalio emphasized that these advantages are not enough to ensure its acceptance as money, especially at the level of governments and central banks.

Bitcoin’s Code and Government Oversight

The billionaire investor underlined that Bitcoin’s code itself may pose a long-term risk. He questioned whether the cryptocurrency’s codebase could be manipulated or weakened by external actors, including governments. “There is a question of whether the code could be broken or things can be done to make it less effective, including government controls on it,” Dalio remarked. He also expressed doubts about Bitcoin’s transparency, noting that blockchain transactions can be tracked, which could make it unattractive as a reserve asset. “I doubt that any central bank will take it on as a reserve currency because governments can see who is doing what transactions on it. There’s no privacy to it,” he added.

Balancing Innovation with Caution

Despite his concerns, Dalio maintained that Bitcoin holds an important place in modern portfolios. He revealed that he continues to own both gold and Bitcoin, though in modest amounts, viewing them as hedges against currency devaluation and economic uncertainty. His remarks highlight a balanced stance—recognizing Bitcoin’s innovation and its role in reshaping finance, while cautioning investors about overreliance on a system still susceptible to code-related and regulatory risks.

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