Ray Dalio Owns Bitcoin. He’s Still Nervous About Quantum Computing, Central Bank Adoption.

Bitcoin was built for an apocalyptic world, but it still has disadvantages as a store of value when compared to gold, according to Bridgewater founder Ray Dalio.

Anyone with an internet connection can safeguard the digital asset on their own. But those people are still reliant on others, including a global network of machines to process transactions, the billionaire investor signaled during a Thursday interview with CNBC.

This year, the precious metal’s price has jumped to record highs on fears of currency debasement, which Dalio referenced in July when urging investors to hedge against macroeconomic risks around rising government debts, in the U.S. and abroad.

At the time, Dalio expressed a preference for gold, and on Thursday, he reiterated his concerns toward the original cryptocurrency, as far as its ability to stand the test of time, or become used by central banks to facilitate international trade and stabilize economies.

“I think the problem with Bitcoin is [that] it’s not going to be a reserve currency for major countries because it can be tracked, and it could be, conceivably, with quantum computing, controlled, hacked, and so on,” he said.

Last week, the Czech National Bank unveiled its first investment in crypto, with $100 million spread across Bitcoin, stablecoins, and tokenized bank deposits. Officials said the “test portfolio” will help the central bank better understand how to handle digital assets.

Although it may be years before quantum computers are strong enough to crack Bitcoin’s encryption, there have been growing calls for precautionary measures within the industry, as tech titans like Google and IBM tout breakthroughs.

With transactions recorded on a public ledger for all to see, tracking someone’s Bitcoin is fairly straightforward once their identity is linked to a digital wallet, pending the use of coin mixers, which obfuscate the source and destination of flows by pooling funds.

Dalio said a “small percentage” of his portfolio has comprised Bitcoin for a long time, but he estimated that it amounts to 1% of his overall wealth. In July, Dalio suggested that investors allocate at least 15% of their holdings to Bitcoin and the precious metal.

Gold is advantageous as a store of value because it can be physically held, without relying on anyone to provide anything, Dalio said. Still, he views Bitcoin and gold as hard currencies because their value can’t be debased by a government through money printing.

Dalio’s debasement concerns are linked to rising levels of U.S. debt, but he said several countries are also facing mounting deficits, including in the UK and France that could lead to what he described months ago as a “debt-fueled heart attack.”