Bitcoin News Today: Ray Dalio advises 15% Bitcoin and gold allocation to hedge U.S. debt-driven instability

Ray Dalio, founder of Bridgewater Associates, has advised investors to allocate 15% of their portfolios to a combination of Bitcoin and gold as a safeguard against financial instability driven by escalating U.S. debt. The recommendation, made during an appearance on the “Master Investor” podcast, underscores Dalio’s concern over the sustainability of the U.S. fiscal framework and the potential erosion of the dollar’s global status. He emphasized that this allocation would optimize the risk-to-return ratio for investors maintaining a neutral stance on other asset classes, leveraging Bitcoin and gold as hedges against economic shocks [1].

Dalio highlighted that the U.S. faces a debt burden of $12 trillion in the coming year, with national debt now six times the country’s annual revenue. He warned that this trajectory could lead to long-term financial challenges, prompting a shift toward alternative assets. The allocation strategy, he argued, reflects historical trends where gold and Bitcoin have served as stores of value during periods of monetary uncertainty. Despite his preference for gold—citing its long-term reliability—Dalio acknowledged Bitcoin’s limited supply and perceived utility in preserving purchasing power, noting that he continues to hold a portion of the cryptocurrency since investing in 2021 [1].

However, Dalio expressed skepticism about Bitcoin’s adoption by central banks, citing its lack of privacy and susceptibility to regulatory pressures. “There is a question of whether the code could be broken or things can be done to make it, let’s say, less effective, including government controls,” he stated, pointing to risks that could deter institutional investment [1]. This perspective contrasts with Bitcoin’s growing appeal as a decentralized alternative to fiat currencies, particularly in the context of rising public debt and diminishing trust in traditional monetary policies.

The market has responded to Dalio’s remarks with heightened interest in both Bitcoin and gold. Analysts suggest that his endorsement reinforces the narrative of cryptocurrencies as inflation hedges, particularly as governments grapple with fiscal pressures. While gold remains a traditional safe-haven asset, Bitcoin’s emergence as a digital counterpart has sparked debates about its role in reshaping financial systems. Dalio’s strategy emphasizes diversification in an environment marked by geopolitical tensions and economic volatility, prioritizing resilience over speculative gains [1].

Sources: [1] [Billionaire Dalio Backs 15% Bitcoin (BTC) or Gold Allocation](https://u.today/billionaire-dalio-backs-15-bitcoin-btc-or-gold-allocation)