Ray Dalio’s Bold Move: Why Billionaires Are Dumping 15% Into Gold & Bitcoin Now
Hedge fund titan Ray Dalio just dropped a bombshell—telling investors to pivot hard into digital gold and the real thing.
The Dalio Doctrine: Hedge With Hard Assets
The Bridgewater founder’s playbook? Allocate 15% to Bitcoin and gold—or risk getting left behind in the inflation storm. No sugar-coating, just cold math.
Gold’s Ancient Safe Haven Meets Crypto’s Wild West
Dalio’s dual embrace pits millennia-old store-of-value against Satoshi’s disruptor. Guess even billionaires hedge their bets when fiat currencies start smelling funny.
Wall Street’s Worst-Kept Secret
Funny how the 1% preach diversification only after loading up their own vaults. But hey—when the bubble pops, at least their lifeboats will be gilded.
Gold and Bitcoin
Because such risks are not priced into markets, Dalio is advising investors to allocate at least 15% of their portfolios to gold or Bitcoin, which could serve as hedges against fiat currencies and cash equivalents (such as bonds).
The investor suggested that he is “strongly preferring” gold over Bitcoin, adding that he doubts any central bank would take the cryptocurrency on as a reserve currency, “because everybody can understand and watch who is doing what transactions on it, so there’s no privacy to it.”
Dalio also argued that there are “doubts” over whether “the code can be broken” or whether Bitcoin’s protocol could ever be changed to make it “less effective” as a store of value.
Given these concerns, the veteran asset manager explained that gold outweighs Bitcoin in his portfolio, saying, “I have gold and I have some Bitcoin, but not much.”
Such caution regarding bitcoin is a common sentiment among more conventional investors and investment advisors, with AJ Bell’s Head of Investment Analysis, Laith Khalaf, telling Decrypt that investing in BTC in the face of economic fears is akin to “jumping out of the frying pan and into a red hot fiery pit.”
While Khalaf affirmed that investing in Bitcoin is “fine” if investors are allocating only small portions of money they’re prepared to lose, he also argued that gold—which can also be volatile—is a “more solid anchor” in the face of potential risk.
“Gold is a much preferable diversifier to Bitcoin, as it tends to increase in price when risk aversion is high,” he said. “It can be a useful insurance policy for a portfolio, but importantly held alongside shares and bonds to achieve a balance of risk and reward.”
On other hand, some experts highlight that gold can carry more risk than often advertised, with cryptocurrency analyst and author Glen Goodman telling Decrypt that certain periods of history were difficult for the metal.
“There's no denying Bitcoin's price volatility, but let's not forget anybody who bought gold during the inflation crisis of 1980 and held it for twenty years lost 85% of their money in real terms during that period,” he says. “Gold didn't start recovering until the turn of the millennium.”
