Dalio sees Bitcoin as merely an alternative to what he considers to be “similar things”, such as gold.
When you create a program and you run millions of copies of it on a network, with copies interconnected, then in the case of the Bitcoin software, or more generally, the Bitcoin protocol, it does indeed generate something that is money-like.
Gold is not like that. Gold is just an inert metal.
Dalio simply does not properly understand what happens when you run large numbers of connected copies of a program.
That is why he was not able to wrap his head around Google or Facebook either, or predict that these things would turn out to be massive financial successes.
The job of an investor is to pick winners, as early on as possible. It is obvious why, over the last 25 years, Dalio could not pick even one. Every single success that occurred in business over that period of time is simply unthinkable to him.
Furthermore, Dalio is of a generation that saw the government sending a rocket to the moon, and who stares at them, believing that they are some kind of higher and more intelligent power, while in reality, the government is as lost as he is, in this new world. That is a situation of the blind leading the blind.