Bridgewater Associates founder Ray Dalio said Bitcoin has not acted as the safe-haven asset many investors expected. Summary Ray Dalio said Bitcoin lacks privacy because transactions can be monitored and possibly controlled. Dalio argued investors often sell Bitcoin during market stress to raise liquidity elsewhere. Michael Saylor pushed back, calling gold analog capital and Bitcoin digital capital for collateral. In a May 11 post, he said Bitcoin gets heavy attention but has fallen short when compared with gold during market stress. Dalio pointed to three issues. He said Bitcoin lacks privacy, trades with a strong link to tech stocks, and remains small compared with gold. He also said gold has a deeper role in the global financial system. Privacy remains a key concern Dalio wrote, “First, Bitcoin lacks privacy.” He added that transactions can be monitored and potentially controlled. In his view, that makes Bitcoin less attractive to central banks as a reserve asset. Bitcoin’s public ledger is part of its design. All confirmed transactions are recorded on a shared blockchain, allowing the network to verify ownership and spending without a central authority. That structure supports transparency, but it also creates the privacy concern Dalio raised. Moreover, Dalio also said Bitcoin has not behaved like gold during stress periods. He said investors often sell Bitcoin when they need cash to cover pressure elsewhere in their portfolios. He added that Bitcoin’s link to tech stocks weakens its safe-haven case. He contrasted that with gold, which he said remains widely held and deeply established. Earlier related coverage on crypto.news noted that Bitwise analysis found gold offered stronger downside protection during market drawdowns, while Bitcoin delivered stronger gains during recovery periods. Saylor defends Bitcoin Strategy executive chairman Michael Saylor pushed back against Dalio’s view. He said gold is “analog capital” while Bitcoin is “digital capital.” He also said Bitcoin’s transparency is a feature, not a flaw, because it supports its use as global collateral. Saylor added that Bitcoin has outperformed gold since Strategy adopted its Bitcoin standard in August 2020. His response showed the split between investors who see Bitcoin as a risk asset and those who view it as a long-term monetary asset. Dalio has not fully rejected crypto. Earlier crypto.news coverage noted that he has held some cryptocurrency, but prefers gold because of Bitcoin’s volatility, traceability, and uncertain reserve role.
