Ray Dalio Advises Allocating 15% of Savings to Bitcoin

Billionaire and Bridgewater Associates founder Ray Dalio has recommended allocating 15% of an investment portfolio to Bitcoin or gold. He stated in the Master Investor podcast that this is the optimal risk-reward ratio amid the growing U.S. national debt and currency devaluation.

Dalio himself prefers gold but noted that the specific allocation between assets is up to the investor. This recommendation marks a significant increase from the 1-2% he suggested for the leading cryptocurrency in January 2022.

The investor identified currency devaluation as the main issue. He pointed out that the U.S. national debt has reached $36.7 trillion. According to Dalio’s forecast, the government will need to issue $12 trillion in treasury bonds over the year to service it.

The billionaire’s words are supported by a report from the U.S. Treasury. The department forecasts borrowing of $1 trillion in the third quarter and $590 billion in the fourth, due to weakened cash flows and reduced reserves.

Dalio believes that other Western countries, including the UK, are in the same “debt trap.” Against this backdrop, he described Bitcoin and gold as “effective diversifiers.”

However, the billionaire doubts that the coin will become a reserve currency. He argues that no central bank will adopt the asset in this role due to transaction transparency. Dalio believes that governments can track all network operations.

“A Crutch in a Collapsing Dam”

Libertarian economist Yevgeny Romanenko opines that rising U.S. government spending and debt inevitably lead to dollar devaluation and a weakening American economy. He believes the era of U.S. government bonds as the world’s most reliable asset has ended. In a comment to ForkLog, the expert stated that traditional gold and Bitcoin have taken their place.

“The actions of major investors swapping depreciating fiat ‘paper’ for gold and ‘digital gold’ reflect this common sense. And this is one of the few signs of health in the ailing American economy,” Romanenko noted.

According to him, the short era of “planetary fiat fraud” is coming to an end. As issuers devalue their currencies, demand for real assets, whose value cannot be artificially destroyed, will only grow.

Romanenko described attempts by authorities to “tighten cryptocurrency regulation” as a manifestation of “regulatory hysteria.” He believes this is how state representatives react to the capital outflow from fiat currencies to alternative assets.

“The normal actions of millions of people trying to protect their hard-earned money cause unending irritation among Leviathan’s agents,” added the economist.

He characterized such regulatory actions as an attempt to “insert another crutch into a collapsing dam.”

Romanenko believes that one should not pay attention to this “hysteria” but focus on shedding fiat and transitioning to real values. In his view, officials themselves secretly transfer their assets to such instruments, counting on the economic ignorance of the masses.

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

Back in December 2024, Dalio stated that he would invest in the leading cryptocurrency amid the inevitable debt crisis.