Ray Dalio, founder of Bridgewater Associates, is asking investors to allocate 15% of their portfolio to Bitcoin (BTC) or gold.
“If you were optimizing your portfolio for a risk-to-risk ratio, you would have around 15% of your money in gold or bitcoin,” Dario said on Sunday’s Master Investors Podcast.
The comments show a notable shift from the 2022 recommendation of just 1-2% in BTC, reflecting growing concern over what Dario calls the “debt doom loop.” He noted that he forecast a new $12 trillion Treasury Department issuance over the next year, which is needed to serve the US $36.7 trillion national debt.
A U.S. Treasury report on Monday confirmed the trend, with the government forecasting $1 trillion in the third quarter, $453 billion more than previous forecasts, followed by $590 billion in the fourth quarter.
Still favoring gold over Bitcoin, Dario described both as “effective diversifiers” in a scenario where Fiat currency loses value compared to hard assets. Still, he remains skeptical about the role of assets as a reserve currency, citing concerns about surveillance and blockchain transparency.
“The government can see who’s doing that,” he said, adding that code-level vulnerabilities could undermine BBTCoin’s reliability as an alternative fund.
Dalio owns “Bitcoin”, but he framed the updated 15% recommendation with flexibility. The specific ratio of BTC to Gold is “up to you.”
BTC will trade for just over $118,000 in Asia morning hours on Tuesday.
