Bitcoin News Today: Ray Dalio Advises 15% Bitcoin or Gold Allocation to Hedge Fiat Devaluation Risk

Billionaire investor Ray Dalio has outlined a strategic allocation for investors seeking to hedge against the devaluation of fiat currencies, recommending a 15% portion of portfolios be allocated to Bitcoin or gold [1]. Speaking on the Master Investor podcast, Dalio emphasized the importance of these assets in mitigating risks arising from excessive money printing and loose monetary policies. While he reiterated his preference for gold over Bitcoin, he acknowledged the latter’s potential as a diversifier. “If you were neutral on anything and optimizing for the best return-to-risk ratio, you would have about 15% in gold or Bitcoin,” he stated, highlighting the role of such assets in countering currency erosion [1].

Dalio’s remarks align with his broader concerns about global fiscal challenges, including the U.S. national debt and the UK’s recent characterization as being trapped in a “debt doom loop” [2]. His framework underscores the systemic risks posed by traditional monetary systems, where central bank interventions—such as quantitative easing—can dilute the value of fiat currencies. Bitcoin’s capped supply of 21 million coins positions it as a contrasting mechanism, offering a non-correlated hedge against inflationary pressures. However, Dalio clarified that the 15% allocation assumes a neutral stance toward market conditions, requiring investors to accept the inherent volatility of cryptocurrencies [1].

The recommendation has sparked discussions about Bitcoin’s role in institutional portfolios, which typically maintain crypto exposure below 1%. Analysts note that Dalio’s threshold reflects a significant departure from conventional asset allocation strategies, signaling a growing acceptance of digital assets as a macroeconomic hedge. Despite this, the investor stressed that the guidance is not a forecast of Bitcoin’s performance but a structural approach to portfolio diversification. Bridgewater Associates, Dalio’s firm, has long emphasized hedging against systemic risks, and this strategy mirrors the cautious optimism seen among macro investors who balance Bitcoin’s potential with regulatory and price uncertainties [1].

The market’s response to these insights remains speculative. While high-profile endorsements like Dalio’s can influence investor behavior, the practical adoption of Bitcoin as a hedging tool will depend on evolving regulatory frameworks and macroeconomic trends. For now, the 15% benchmark serves as a reference point for investors navigating the intersection of fiat currency risks and digital assets.

Source: [1] [Ray Dalio just revealed how much Bitcoin you need to hedge against fiat devaluation](https://finbold.com/ray-dalio-just-revealed-how-much-bitcoin-you-need-to-hedge-against-fiat-devaluation/) [2] [Ray Dalio: UK is in a 'debt doom loop'](https://www.cityam.com/ray-dalio-uk-is-in-a-debt-doom-loop/)