Concerns Raised Over Traceability and Quantum Computing Vulnerabilities


(Seoul=Yonhap Infomax) Jang Won Lee – Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, revealed that he has allocated approximately 1% of his portfolio to Bitcoin.


According to CoinDesk on the 20th (U.S. local time), Dalio stated in an interview with CNBC, “I have invested about 1% of my portfolio in Bitcoin and have held it for a long time.”


Dalio previously disclosed in July that he held a small amount of Bitcoin and argued that, amid the worsening U.S. debt situation, the combined allocation to Bitcoin and gold should be increased to as much as 15% of total assets.


However, Dalio pointed out that Bitcoin is unlikely to be adopted as a reserve asset by major countries due to issues of transparency and technological vulnerabilities.


“The problem with Bitcoin is that it can be traced,” he said, adding, “It will not become the reserve currency of major countries.”


He also warned of potential vulnerabilities stemming from advances in quantum computing, noting that quantum technology could make Bitcoin susceptible to control or hacking.


The industry has long argued that quantum computers pose a potential threat to the public key cryptography algorithms used in Bitcoin and other cryptocurrencies.


Meanwhile, Dalio warned that, according to his proprietary “bubble indicator” analysis, the U.S. economy is currently on a bubble trajectory similar to the period just before the Great Depression in 1929 or the dot-com bubble burst in 2000, and is now at nearly 80% of the way there.


Dalio’s bubble indicator is known to assess market vulnerabilities by tracking various metrics such as leverage, money supply, and wealth concentration since 1900.


“We are in that bubble zone, but have not yet reached the stage of pricking the bubble,” Dalio assessed.


jang73@yna.co.kr


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