Ray Dalio advised to hold 15% of savings in bitcoin

Billionaire and founder of Bridgewater Associates Ray Dalio advised to allocate 15% of the investment portfolio to Bitcoin or gold. This is the optimal risk-return ratio amid rising U.S. national debt and currency devaluation, he stated in the Master Investor podcast.

Dalio himself prefers gold but clarified that the choice of the specific ratio between assets is up to the investor. This recommendation is a significant increase compared to the 1-2% that the businessman advised allocating to the first cryptocurrency in January 2022.

The main problem cited by the investor is the devaluation of money. He pointed out that the US national debt has reached $36.7 trillion. According to Dalio's forecast, to service it, the government will have to issue treasury bonds for another $12 trillion over the course of the year.

The billionaire's words are confirmed by the report from the U.S. Treasury. The agency forecasts borrowings of $1 trillion in the third quarter and $590 billion in the fourth. This is due to the weakening of cash flows and a decrease in reserves.

Dalio believes that other Western countries, including the UK, are in the same "debt loop". Against this background, he called bitcoin and gold "effective diversifiers".

The billionaire doubts that the coin will become a reserve currency. According to him, no central bank will accept an asset in this role due to the transparency of transactions. Dalio believes that governments can track all operations on the network.

As of the time of writing, digital gold is trading at $118,912, according to CoinGecko. Over the week, the price has increased by 1%, and over the month — by 10.7%.

In December 2024, Dalio stated that he would invest in the first cryptocurrency against the backdrop of an inevitable debt crisis.