Bitcoin News Today: Ray Dalio Recommends 15% Bitcoin and Gold to Hedge Devaluing Fiat and Rising Debt

Billionaire investor Ray Dalio, founder of Bridgewater Associates, has advised allocating 15% of investment portfolios to gold or Bitcoin as a hedge against macroeconomic risks and the devaluation of fiat currencies. In a recent interview on the "Masters of Scale" podcast, Dalio highlighted the unsustainable trajectory of U.S. government debt, noting that spending exceeds revenue by 40%, with debt six times annual revenue and interest payments reaching $1 trillion annually. He warned that these risks remain underpriced in financial markets and could trigger a systemic collapse if events like large-scale quantitative easing or government intervention in central banks materialize [1].

Dalio’s recommendation aligns with his broader thesis that “hard money” assets like gold and Bitcoin provide a critical diversification tool in an era of fiscal uncertainty. While he advocates for a 15% allocation to either asset class, he personally holds a small amount of Bitcoin, acquired in May 2021. However, he expressed skepticism about Bitcoin’s viability as a reserve currency due to its lack of privacy—transactions are transparently visible—and potential vulnerabilities to government regulation or technological threats [2]. Despite these concerns, Dalio acknowledged Bitcoin’s utility as a store of value, citing its limited supply and transactional properties. His preference for gold over Bitcoin is rooted in its historical role as a safe-haven asset and its perceived resilience against systemic risks [3].

The rationale for the 15% allocation centers on mitigating the erosion of fiat currency purchasing power and the risks of trade conflicts or policy shifts destabilizing traditional markets. Dalio’s analysis echoes a growing narrative among investors that non-sovereign assets like gold and Bitcoin can offer resilience amid macroeconomic uncertainty. However, he emphasized that Bitcoin’s volatility and speculative nature distinguish it from gold’s centuries-old track record as a store of value. His nuanced stance—endorsing Bitcoin while favoring gold—reflects a pragmatic approach to balancing innovation with tradition in portfolio construction [4].

The practical implications of Dalio’s advice could influence market dynamics, particularly as institutional interest in Bitcoin continues to rise. Yet, the effectiveness of the 15% allocation may depend on individual risk tolerance and market conditions. Gold’s role as a stable hedge contrasts with Bitcoin’s price swings, which could amplify gains or losses depending on timing. Dalio’s commentary also underscores the evolving debate over Bitcoin’s utility as a reserve asset, with critics and proponents arguing over its long-term viability [5].

For investors, Dalio’s guidance highlights the importance of diversification and preparedness in an environment of unpredictable macroeconomic conditions. While his recommendation does not constitute a bullish bet on Bitcoin’s future, it acknowledges the asset’s potential as part of a hedging strategy. The key takeaway lies in balancing exposure to traditional safe-haven assets with newer, speculative alternatives to navigate systemic risks. As debates over digital assets persist, Dalio’s endorsement signals a cautious but strategic shift in institutional perspectives on portfolio allocation [6].

Sources:

[1] [Billionaire Ray Dalio Urges Investors to Allocate 15% of...](https://www.reddit.com/r/CryptoCurrency/comments/1mbimvv/billionaire_ray_dalio_urges_investors_to_allocate/)

[2] [Ray Dalio Says 15% In Bitcoin Or Gold May Be Essential...](https://www.benzinga.com/crypto/cryptocurrency/25/07/46653821/ray-dalio-says-15-in-bitcoin-or-gold-may-be-essential-as-fiat-currencies-face-devaluation-risks)

[3] [Ray Dalio Urges 15% Bitcoin, Gold Allocation for US Debt...](https://www.cryptotimes.io/2025/07/28/ray-dalio-urges-15-bitcoin-gold-allocation-for-us-debt-risks/)

[4] [Ray Dalio Recommends 15% Portfolio Allocation to Bitcoin...](https://coinpedia.org/crypto-live-news/ray-dalio-recommends-15-portfolio-allocation-to-bitcoin-or-gold/)

[5] [Ray Dalio Recommends Allocating 15% of Funds to Gold...](https://www.binance.com/en/square/post/07-28-2025-ray-dalio-recommends-allocating-15-of-funds-to-gold-or-bitcoin-27546743738649)

[6] [Ray Dalio Endorses 15% Bitcoin or Gold Portfolio Allocation](https://m.economictimes.com/crypto-news-today-live-28-jul-2025/liveblog/122939448.cms)