- Ray Dalio, founder of Bridgewater Associates, now advises investors to allocate about 15% of their portfolio to either Bitcoin or gold for optimal risk-adjusted returns, though he personally favours gold.
- Dalio’s recommendation comes as a hedge against the growing US national debt (now US$36.7T) and the potential devaluation of fiat currency, warning of a “debt doom loop”.
- This advice marks a significant increase from his January 2022 guidance, when he suggested only a 1-2% Bitcoin allocation, reflecting a growing concern over the fiscal crisis.
Ray Dalio has told investors to lean more into Bitcoin (BTC) or gold as a hedge against the US debt spiral and weakening currency.
Speaking on the Master Investor podcast Sunday, the Bridgewater Associates founder said an optimal portfolio “for the best return-to-risk ratio” would place roughly 15% in either Bitcoin or gold.
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But the American billionaire did note he holds “some Bitcoin, but not much”, while still “strongly preferring gold”, a good old touch of tradition, leaving the split between the two up to individual investors.
If you were optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or bitcoin. I’m strongly preferring gold to bitcoin, but that’s up to you.
Ray DalioMore Bitcoin Against Fiat
That’s quite a stark change from Dalio’s January 2022 guidance, when he suggested only a 1–2 % Bitcoin allocation during an interview with The Investors Podcast.
At the time, Dalio appeared fully committed to BTC, claiming that fiat currencies like the euro and yen would deteriorate—and that BTC was the ideal hedge against fiat-driven inflation.
His remarks came against the backdrop of a deepening fiscal crisis. US national debt has now reached US$36,7T (AU$56T), according to Treasury figures. Dalio warned the government may need to issue another US$12T (AU$18T) in Treasurys within the next year just to meet its obligations.
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