Bitcoin News Today: Ray Dalio advises 15% Bitcoin as fiat devaluation hedge cites gold as preferred alternative

Billionaire investor Ray Dalio has provided a concrete allocation strategy for Bitcoin as a hedge against fiat currency devaluation, suggesting investors allocate approximately 15% of their portfolios to digital assets like Bitcoin or gold [1]. Speaking on the Master Investor podcast, Dalio emphasized the role of these assets in mitigating risks posed by excessive money printing and unstable monetary policies. While he reiterated his preference for gold, he acknowledged Bitcoin as a viable, albeit less favored, diversification tool.

Dalio’s recommendation is framed as a baseline for investors seeking to optimize their portfolios for return-to-risk ratios in an environment of currency depreciation. “It’s an effective diversifier,” he stated, noting that the 15% allocation applies to those with neutral views on crypto, rather than those with preexisting convictions [1]. This approach underscores a defensive strategy rather than speculative exposure, balancing traditional assets against macroeconomic uncertainties.

The context for Dalio’s remarks includes growing concerns about global fiscal sustainability. For instance, the UK faces a “debt doom loop,” characterized by high taxes, low growth, and expanding deficits [2]. In such scenarios, assets inversely correlated to fiat currencies—like Bitcoin—gain strategic value. However, Dalio did not position Bitcoin as a replacement for traditional hedges like gold or real estate. Instead, he framed it as one component of a diversified approach to navigating economic instability.

Bitcoin’s volatility remains a critical consideration. While the asset has historically shown low correlation with traditional markets, its price swings could amplify portfolio risk if not managed carefully. Dalio’s 15% threshold reflects a balance—sufficient to offset fiat devaluation but low enough to avoid overexposure to crypto’s inherent volatility. Analysts have interpreted this as a cautious institutional endorsement, particularly as central banks increasingly normalize digital assets in asset allocation frameworks.

The practical implications of Dalio’s advice hinge on investors weighing fiat devaluation risks against Bitcoin’s volatility. His comments do not signal a paradigm shift in asset management but reinforce the idea that digital assets can play a defined role in managing inflationary pressures. As central banks continue to navigate post-pandemic economic dynamics, demand for alternative hedges is likely to persist, with Bitcoin serving as one tool in a diversified toolkit.

A recent example of crypto exposure’s potential impact includes Tesla’s $284 million gain from Bitcoin holdings in Q2 2025 [3]. While such outcomes highlight rewards, they also underscore the asset class’s risks. Dalio’s 15% allocation is explicitly designed to minimize downside rather than chase speculative gains, aligning with his broader philosophy of risk mitigation.

Sources:

[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/)

[3] [MLQ.ai | Stocks](https://mlq.ai/news/)