Ray Dalio: Bitcoin transactions are traceable, making it difficult for central banks to adopt

According to CoinDesk, billionaire hedge fund manager Ray Dalio stated that Bitcoin’s lack of privacy—making transactions monitorable and potentially controllable—is the primary reason central banks are reluctant to hold it. Dalio said approximately 1% of his portfolio is allocated to Bitcoin but believes its transparent ledger renders it unsuitable as a reserve asset. Dalio also pointed out that Bitcoin’s 90-day correlation coefficient with the Nasdaq Index stands at 0.89, and roughly 79% of its price volatility can be explained by movements in tech stocks—undermining its function as an independent store of value. Furthermore, Bitcoin’s market size remains comparatively small relative to gold and is more susceptible to influence; Dalio believes gold continues to play a more central role in the global system.