A famous billionaire recommended investing 15% of portfolio in bitcoin and gold

Billionaire and founder of hedge fund Bridgewater Associates Ray Dalio advised investors to allocate up to 15% of their savings to bitcoin or gold. According to him, such a share allows to balance risks and maintain profitability against the background of growing U.S. government debt and depreciation of the dollar.

Dalio himself noted that he personally prefers gold, but emphasized that the final decision on capital allocation should be made by the investor himself. This recommendation was a significant revision of his previous estimates – back in 2022, he advised to invest no more than 1-2% in bitcoin.

The billionaire called the main threat to the economy the decline in the purchasing power of currencies. The U.S. national debt has already reached $36.7 trillion, and, according to Dalio’s forecasts, the government will be forced to place another $12 trillion in Treasury securities over the next year. The U.S. Treasury confirms that borrowing of $1 trillion is planned for the third quarter and $590 billion for the fourth quarter.

According to Dalio, it is not only America that is under pressure from the debt burden. The UK and other Western countries have similar problems. In these conditions, gold and bitcoin become an effective tool for diversification. However, he doubts that cryptocurrency will ever become a reserve currency: the transparency of the blockchain allows governments to track every transaction, which makes the asset inconvenient for central banks.

Economist Evgeny Romanenko agreed with the billionaire’s assessment. In a conversation with ForkLog, he said that the era of US government bonds as “the most reliable asset” has come to an end. According to him, investors are rightly transferring funds from “fiat money” to gold and bitcoin, and the authorities’ attempts to strengthen regulation of the crypto market are just a reaction to the capital outflow.

Romanenko characterized these measures as “regulatory hysteria,” comparing them to an attempt to “stick a crutch in a collapsing dam.” He urged to ignore the pressure from the state and continue the transition into real values, recalling that even officials, in his opinion, secretly convert some assets into gold and cryptocurrencies.