Bitcoin News Today: Ray Dalio urges 15% gold and Bitcoin allocation to hedge fiat devaluation and rising debt

Ray Dalio, founder of Bridgewater Associates, has advised investors to allocate 15% of their portfolios to long-term assets such as gold and Bitcoin to hedge against risks stemming from fiat currency devaluation and rising global debt [1]. The recommendation, shared during an appearance on CNBC’s Master Investor Podcast, underscores Dalio’s belief in diversifying holdings to optimize risk-adjusted returns amid economic uncertainty. While he expressed a stronger preference for gold—citing its historical role as a reserve asset during crises—he acknowledged Bitcoin’s potential as a decentralized alternative, albeit with reservations about its privacy features and institutional adoption [2].

Dalio’s comments reflect his analysis of unsustainable fiscal trajectories, particularly in the U.S., where he warned that the government could face a “point of no return” as debt servicing costs consume nearly half of the budget shortfall. He projected that Western economies, including the U.S., may enter a “debt doom loop” as nations issue trillions in new debt to sustain their obligations. This dynamic, he argued, could lead to a “classic devaluation” of fiat currencies, echoing historical precedents like the decline of the British pound and Dutch guilder [3]. By analogy, Dalio suggested that hard assets like gold and Bitcoin could serve as effective diversifiers, preserving value as fiat currencies lose purchasing power [4].

Despite his cautious stance, Dalio highlighted Bitcoin’s advantages, including its fixed supply and global accessibility, while noting his personal holding of “some bitcoin, but not much.” He questioned its viability as a central bank reserve due to on-chain privacy limitations and the longevity of its underlying code, yet recognized its growing perception as a store of value. This nuanced perspective aligns with his broader philosophy of balancing innovation with institutional pragmatism [5].

The timing of the recommendation coincides with Bitcoin trading near $119,000, a level some analysts suggest could precede a rally toward $135,000–$155,000 in the coming months [6]. However, Dalio’s analysis is rooted in macroeconomic fundamentals rather than speculative price projections. He emphasized the U.S. dollar’s historical erosion of 96% in purchasing power since 1913 and projected $12 trillion in new debt issuance over the next year to service existing liabilities. These factors, he argued, justify a strategic allocation to assets that can withstand structural monetary challenges [7].

Dalio’s guidance has reignited discussions about alternative assets as a hedge against systemic risks. While some analysts view the 15% threshold as a conservative approach to portfolio resilience, others interpret it as a signal of shifting investor sentiment toward asset classes perceived as more resilient to policy missteps and trade tensions [8]. His emphasis on diversification underscores the growing intersection between traditional finance and cryptocurrencies, with Bitcoin increasingly viewed as a strategic, albeit speculative, complement to gold [9].

As markets grapple with these insights, the focus remains on how governments and central banks respond to fiscal pressures. Dalio’s analysis serves as a cautionary framework, urging investors to anticipate structural changes in monetary policy and capital flows. Whether through gold or Bitcoin, his recommendation reflects a proactive stance in navigating an era of financial uncertainty, emphasizing preparedness for multiple economic scenarios through a diversified asset strategy [10].

Sources:

[1] KITCO, [https://www.kitco.com/news/article/2025-07-28/billionaire-investor-ray-dalio-urges-15-allocation-gold-or-bitcoin-says](https://www.kitco.com/news/article/2025-07-28/billionaire-investor-ray-dalio-urges-15-allocation-gold-or-bitcoin-says)

[2] The Block, [https://x.com/TheBlock__/status/1949935419426025702](https://x.com/TheBlock__/status/1949935419426025702)

[3] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-ray-dalio-recommends-15-bitcoin-gold-hedge-devaluing-fiat-rising-debt-2507/](https://www.ainvest.com/news/bitcoin-news-today-ray-dalio-recommends-15-bitcoin-gold-hedge-devaluing-fiat-rising-debt-2507/)

[4] Cryptonews, [https://cryptonews.com/news/billionaire-ray-dalio-recommends-15-bitcoin-allocation-as-fiat-currencies-face-classic-devaluation/](https://cryptonews.com/news/billionaire-ray-dalio-recommends-15-bitcoin-allocation-as-fiat-currencies-face-classic-devaluation/)

[5] MEXC, [https://www.mexc.com/es/news/founder-of-bridgewater-fund-it-is-recommended-to-allocate-at-least-15-of-the-portfolio-to-gold-and-bitcoin/62613](https://www.mexc.com/es/news/founder-of-bridgewater-fund-it-is-recommended-to-allocate-at-least-15-of-the-portfolio-to-gold-and-bitcoin/62613)

[6] Binance, [https://www.binance.com/en/square/post/27558392055177](https://www.binance.com/en/square/post/27558392055177)

[7] Infomarine.net, [https://infomarine.net/en/insight/118-crypto-news/34539-billionaire-ray-dalio-urges-investors-to-allocate-15-of-portfolios-to-gold-and-bitcoin.html](https://infomarine.net/en/insight/118-crypto-news/34539-billionaire-ray-dalio-urges-investors-to-allocate-15-of-portfolios-to-gold-and-bitcoin.html)

[8] investingLive, [https://investinglive.com/Cryptocurrency/ray-dalio-recommends-15-allocation-in-long-term-assets-like-bitcoin-gold-crypto-media-20250728/](https://investinglive.com/Cryptocurrency/ray-dalio-recommends-15-allocation-in-long-term-assets-like-bitcoin-gold-crypto-media-20250728/)

[9] Cryptonews, [https://cryptonews.com/news/billionaire-ray-dalio-recommends-15-bitcoin-allocation-as-fiat-currencies-face-classic-devaluation/](https://cryptonews.com/news/billionaire-ray-dalio-recommends-15-bitcoin-allocation-as-fiat-currencies-face-classic-devaluation/)