Ray Dalio’s Bold Move: Why a 15% Bitcoin (BTC) or Gold Allocation Could Save Your Portfolio

Ray Dalio—the hedge fund titan who called the 2008 crash—just dropped a bombshell: diversify with 15% in Bitcoin or gold. Here's why.

Traditional finance is sweating. The man who built Bridgewater Associates isn't known for reckless bets. Yet his latest playbook reads like a crypto maximalist's manifesto.

Gold's old-school allure meets Bitcoin's digital scarcity. Dalio's logic? Hedge against the system—before it hedges against you.

Central banks print, politicians spend, and your savings erode. Meanwhile, BTC's hard cap laughs at inflation. Gold's track record spans millennia. Pick your poison.

Wall Street's still clutching its pearls. But when a guy with Dalio's track record talks, smart money listens—even if it's through gritted teeth.

Funny how 'risky' assets suddenly look sane when the alternative is trusting the same institutions that brought us 'transitory' inflation.

Ray Dalio’s Portfolio Suggestion: Gold or Bitcoin as Safe Havens

In the latest appearance on the Master Investor Podcast, the Bridgewater Associates founder also acknowledged that he holds both gold and Bitcoin. However, he did not disclose the specific amount. 

When it comes to BTC, Dalio added that he has ‘some Bitcoin but not much.’ He also stressed that assets serve as effective diversifiers against the devaluation of money.

“If you were neutral on everything, in other words, you didn’t have a point of view and you were optimizing your portfolio for the best return to risk ratio, you WOULD have about 15% of your money in gold or or Bitcoin,” he said.

Furthermore, Dalio noted that bitcoin has certain advantages, such as its limited supply and its ability to be transacted globally with relative ease. Nonetheless, he expressed doubts about Bitcoin’s viability as a reserve currency. 

His concerns include the transparency of Bitcoin transactions, which could allow governments to monitor activities, and the possibility that the code behind Bitcoin could be compromised or altered.

“I doubt that any central bank will take it on as a reserve currency because everybody can understand and watch. Governments can who is doing what transactions on it. I can’t say exactly how effective it is as a money but it’s being perceived by many as an alternative money,” Dalio added.

Still, the 15% portfolio allocation recommendation marks a huge shift from his 2022 recommendation of just 1–2% in the largest cryptocurrency. This updated suggestion comes amid rising concerns about public debt.

According to the latest data from the US debt clock, the national debt stands at $37.1 trillion, with a debt-to-GDP ratio of 123.2%. The billionaire also outlined that the US government spends significantly more than it collects.

He pointed out that the government will likely need to issue nearly $12 trillion in new Treasuries next year to service its growing debt.

The Treasury released their borrowing estimates.

$1.6T in net new debt issuance over the next two quarters. About $500B of it is the TGA refill. pic.twitter.com/3IEBz0mKbc

Dalio stressed that we are approaching the end of a long-term debt cycle, where the accumulation of debt becomes too burdensome to handle without triggering a crisis. He stressed that such a scenario would likely result in rising interest rates, a depreciating currency, and a decline in the stock market, as the market reacts to the rising debt levels and the lack of effective solutions.