Bridgewater Associates founder Ray Dalio calls on investors to sell 15% of their portfolios to Bitcoin (BTC) or gold, citing increased risks from the US’s accelerating debt burden and long-term currency.
“If you optimized your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or bitcoin,” Dalio said at Master Investor Podcast on Sunday.
The comments mark a remarkable shift from his recommendation from 2022 of only 1-2% in BTC, reflecting growing concern about what Dalio calls a “debt death loop.” He pointed to a projected $ 12 trillion in the issuance of a new treasury over the next year required to serve the US $ 36.7 trillion national debt.
A US Treasury report on Monday confirmed the trend in which the government expected to borrow $ 1 trillion in 3rd quarter, $ 453 billion more than previously expected, followed by $ 590 billion in the 4th quarter.
Dalio, who still favors gold over Bitcoin, described both as “effective diversification times” in a scenario where Fiat currency loses value compared to hard assets. Still, he maintains skepticism for the role of the asset as a reserve currency with reference to concern for monitoring and transparency of blockchain.
“Governments can see who is doing, what transactions on it,” he said, adding that any coding level vulnerability can undermine BBTCOIN’s credibility as an alternative money.
While Dalio owns “Some Bitcoin,” he framed his updated 15% recommendation as flexible: The specific relationship between BTC and Gold is “up to you,” he said.
BTC deals just over $ 118,000 in Asian morning hours on Tuesday.
