Billionaire investor Ray Dalio has advised allocating 15% of investment portfolios to gold or Bitcoin as a hedge against risks posed by mounting U.S. debt and potential currency devaluation, signaling a shift from his previous stance on cryptocurrency exposure.
The founder of Bridgewater Associates increased his recommended Bitcoin allocation from 1-2% to the current 15%, which he now combines with gold holdings. This adjustment addresses heightened concerns around the U.S. national debt surpassing $36.7 trillion and its implications for dollar stability, describing both assets as protective measures against monetary devaluation.
Though Dalio maintains a preference for gold over Bitcoin based on gold’s longer history as a store of value, his revised position explicitly incorporates Bitcoin within the recommended allocation framework, recognizing its hedging utility. Analysts foresee this endorsement potentially accelerating institutional and retail interest in both assets as hedges during economic uncertainty.
The guidance reflects broader warnings about dollar devaluation pressures and comes amid growing investor focus on non-traditional assets. Dalio’s revised stance underscores the increasing relevance of alternative stores of value in portfolios exposed to fiat currency risks and sovereign debt challenges.