Famous billionaire and founder of Bridgewater Associates, Ray Dalio, recommends that investors allocate up to 15% of their investment portfolio to assets such as Bitcoin and gold. He made this statement during the podcast The Master Investor, where he discussed the financial challenges of the modern U.S. economy.
This is reported by Finway
Debt Pressure in the U.S. and Global Risks
Dalio emphasized that the United States is on the brink of significant financial difficulties due to rising national debt and currency devaluation. According to his estimates, by 2026, the U.S. government will be forced to issue $12 trillion in bonds to service the debt and cover budget expenses. He noted that a similar situation is observed in many other countries around the world.
“Looking at this dynamic, I feel like a doctor observing the growth of a tumor. […] We have reached a point of no return, as we have only one way out – to continue increasing the debt,” he stated.
Bitcoin and Gold as Effective Diversifiers
In response to the debt crisis, Dalio recommends considering Bitcoin and gold as tools for protecting investments. He pointed out that these assets can serve as reliable risk diversifiers in a portfolio. At the same time, Dalio expressed doubt that central banks around the world will recognize Bitcoin as a reserve asset anytime soon, but emphasized that both of these instruments have a place in his personal investments.
Although Dalio did not disclose the exact allocation of his assets, he advised cautious investors to allocate up to 15% of their portfolio to Bitcoin and gold. According to the billionaire, this could help hedge against inflationary risks and financial instability. Dalio also admitted that he prefers gold over Bitcoin; however, he stated that the final decision should be made by each investor individually.
This is not the first time Ray Dalio has expressed support for Bitcoin. Earlier, during his speech at Abu Dhabi Finance Week, he predicted the devaluation of debt bonds and urged investment in “hard” assets, which include the first cryptocurrency.