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Bridgewater Associates founder Ray Dalio believes that Bitcoin could play a key role in safeguarding portfolios during times of economic instability—recommending up to 15% in hard assets like Bitcoin or gold for an optimal balance between risk and return.
Speaking on The Master Investor Podcast with Wilfred Frost on July 27, Dalio addressed the growing pressures on global economies from mounting debt and weakening fiat currencies. Drawing parallels to historical downturns in the 1930s and 1970s, he warned that traditional currencies are entering a period of structural decline, making alternative stores of value increasingly attractive.
When asked whether Bitcoin qualifies as a legitimate asset to hold in such an environment, Dalio described it as both a medium of exchange and, more importantly, a “storehold of wealth.” He explained:
“If you were neutral on everything and optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin.”
Source: create.vista.com
While Dalio admitted he personally favors gold over Bitcoin, he acknowledged Bitcoin’s decentralized design and limited supply as potential shields against currency debasement. However, he cautioned against overreliance on BTC, pointing to volatility, regulatory risks, and questions over its long-term role as a reserve currency.
Dalio disclosed that he holds “some Bitcoin, but not much,” alongside gold in his own portfolio. He emphasized that history shows how, in times of excessive debt and geopolitical strain, currencies can lose value rapidly—and in such moments, holding alternative assets becomes essential.
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