Bitcoin News Today: Ray Dalio Advises 15% Allocation to Gold or Bitcoin Hedging Fiat Devaluation Risks

Ray Dalio, founder of Bridgewater Associates, has advised investors to allocate 15% of their portfolios to gold or Bitcoin as a hedge against fiat currency devaluation, according to remarks made during a July 2025 episode of the Master Investor Podcast [1]. The recommendation reflects growing concerns about the stability of traditional currencies amid escalating fiscal deficits and sovereign debt levels globally. Dalio, a towering figure in macroeconomic analysis, emphasized that such an allocation aligns with principles of diversification to mitigate risks associated with currency erosion. His commentary has sparked discussions about potential shifts in investor strategies, particularly in how digital assets like Bitcoin and tangible commodities such as gold are positioned within broader portfolios.

Dalio’s rationale centers on the structural vulnerabilities of fiat systems, which he believes are increasingly under strain from government spending and inflationary pressures. “If you were neutral on everything and optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin,” he stated during the podcast [2]. This approach mirrors historical diversification strategies employed during periods of economic uncertainty, such as the 2020-2021 market dynamics when similar institutional interest in alternative assets drove price appreciation. Analysts note that while Dalio’s influence is significant, the market’s response to his guidance will depend on how rapidly investors adjust their allocations and whether central banks address underlying fiscal challenges [3].

The potential implications for Bitcoin and gold markets remain speculative. Historically, endorsements from high-profile investors have catalyzed short-term surges in demand for these assets, though no immediate market shifts have been observed following Dalio’s remarks. Bitcoin, in particular, faces regulatory and scalability challenges that could temper its appeal as a safe-haven asset, whereas gold’s role as a store of value remains well-established. However, the dual allocation proposed by Dalio underscores a broader trend toward asset classes perceived as less correlated to traditional markets.

Experts caution that while the 15% allocation is a strategic suggestion, its effectiveness will hinge on macroeconomic outcomes. For instance, if governments implement policies to stabilize fiat currencies—such as fiscal reforms or monetary tightening—the demand for gold and Bitcoin could wane. Conversely, deteriorating confidence in fiat systems may accelerate adoption of alternative assets. “The key variable is whether inflationary pressures persist and how central banks respond,” one analyst noted [4]. Such dynamics highlight the delicate balance between hedging against risk and maintaining exposure to conventional markets.

The cryptocurrency and precious metals markets have long been influenced by institutional commentary. Dalio’s stance aligns with broader conversations about the role of digital assets in diversified portfolios, though critics argue that Bitcoin’s volatility makes it a less reliable hedge compared to gold. Meanwhile, gold’s historical performance during inflationary periods provides a counterpoint to its critics, particularly in an era where fiat currencies are increasingly subject to quantitative easing and debt accumulation.

Regardless of the asset class, the core message from Dalio resonates with a fundamental principle of investing: adaptability to macroeconomic risks. His advocacy for a 15% allocation underscores a cautious yet forward-looking approach, one that acknowledges the limitations of traditional financial systems while seeking to preserve capital through alternative means. As markets continue to grapple with uncertainties, the interplay between fiat devaluation concerns and investor behavior will remain a critical focal point for both institutional and retail players.

Source:

[1] [Ray Dalio Recommends 15% Gold or Bitcoin Allocation] [https://coinmarketcap.com/community/articles/68878831d834536705baddee/

[2] [Ray Dalio Recommends 15% Gold or Bitcoin Allocation] [https://coinmarketcap.com/community/articles/68878831d834536705baddee/

[3] [Ray Dalio Recommends 15% Gold or Bitcoin Allocation] [https://coinmarketcap.com/community/articles/68878831d834536705baddee/

[4] [Ray Dalio Recommends 15% Gold or Bitcoin Allocation] [https://coinmarketcap.com/community/articles/68878831d834536705baddee/