Ray Dalio, founder of Bridgewater Associates, discusses Bitcoin again: scarcity does not equal Central Bank reserves, gold remains the preferred hard asset.

Billionaire investor and founder of Bridgewater Associates, Ray Dalio, recently expressed a cautious attitude towards Bitcoin's role in the global financial system. He pointed out that although Bitcoin has scarcity and certain “currency attributes,” it is not suitable as an official reserve asset from the perspective of Central Bank asset allocation and reserve management.

In a recent interview, Dalio described Bitcoin as a “spiritual currency.” He acknowledged that Bitcoin has a fixed supply, is decentralized, and is widely regarded as a digital currency, but these characteristics are not sufficient for the Central Bank to include it on its balance sheet. Dalio believes that the Central Bank is more concerned with the security, stability, and controllability of assets, which are precisely the shortcomings of Bitcoin.

Dalio emphasized the transparency issues of Bitcoin. He pointed out that transactions on the Bitcoin blockchain are completely traceable, which can become a risk at the reserve management level. Once transactions are monitored, interfered with, or even restricted, their reliability as a national reserve asset will be called into question. In contrast, gold is harder to trace or control once it is removed from the financial system, thus possessing stronger hedging properties in extreme environments.

From a security perspective, Dalio also reminds that Bitcoin has potential risks of being subjected to technical attacks, destruction, or regulatory restrictions, which could undermine its appeal as a long-term store of wealth. For this reason, when choosing between Bitcoin and gold, he has always leaned more towards gold.

Nevertheless, Dalio does not completely deny Bitcoin. He revealed that he still holds a small amount of Bitcoin and has previously suggested that investors pay attention to scarce assets like Bitcoin and gold to hedge against the risks of high global debt and currency devaluation. However, he clearly stated that Bitcoin has a lower priority in his asset allocation than gold.

When it comes to stablecoins, Dalio is more conservative. He believes that stablecoins are pegged to fiat currencies and are essentially still influenced by the traditional monetary system, making them more suitable for quick payments and transactions rather than long-term storage of value or asset allocation.

Overall, Ray Dalio's views provide important insights into the topic of “whether Bitcoin can become a Central Bank reserve asset.” In his opinion, Bitcoin is a digital currency with scarce value, while gold remains a more mature and reliable hard asset for hedging. This position also reflects the realistic boundaries of traditional financial giants' attitudes toward crypto assets.