Ray Dalio, founder of Bridgewater Associates, has reiterated his support for Bitcoin in the context of a balanced investment portfolio, recommending a portion of capital be allocated to alternative assets.
Key Investment Recommendations from Dalio
Dalio spoke on CNBC’s 'Master Investor' podcast, emphasizing the importance of having alternative stores of value like Bitcoin and gold in a portfolio.
> 'You would have about 15% of your money in gold or Bitcoin,' Dalio noted.
Dalio's Take on Bitcoin and Gold Assets
While he expressed a personal preference for gold, Dalio also underscored Bitcoin’s appeal due to its limited supply and perceived monetary function. He acknowledged that he remains a holder of some Bitcoin since entering the market in May 2021. Dalio expressed skepticism regarding Bitcoin’s role as a reserve currency, citing its lack of privacy and potential regulatory risks.
> 'There is a question of whether the code could be broken or whether government controls could make it less effective,' he said.
Bitcoin Market and Its Prospects
Though Dalio articulated his concerns, his remarks come at a time of rising investor anxiety regarding the ballooning U.S. debt, which now stands nearly six times greater than annual revenues. Dalio warned that the supply of debt the U.S. will have to sell in the coming year is about $12 trillion, characterizing the situation as unsustainable. Meanwhile, Bitcoin advocates see the cryptocurrency as a hedge against government mismanagement and inflation. Dalio’s comments are likely to reignite discussions around the role of decentralized assets in modern portfolio strategies.
Ray Dalio’s endorsement of Bitcoin highlights the importance of diversifying portfolios amid rising debt risks, serving as a significant signal for investors interested in alternative assets.
