Ray Dalio suggests that investors allocate 15% to gold or Bitcoin, stating that holding a small amount of Bitcoin personally.

On July 28th, billionaire Ray Dalio proposed that investors allocate 15% of their investment portfolios to Bitcoin and gold in order to hedge against the continuously growing U.S. debt and economic instability. The founder of Bridgewater Associates, Ray Dalio, stated in the "Masters of Scale" podcast that the macroeconomic risks posed by the rising government debts of the U.S. and other countries have not been fully digested by the market, and the market may ultimately face a significant downturn. The U.S. government "spends 40% more than it earns and cannot really cut spending. Its debt is six times its revenue, with annual interest payments reaching up to $1 trillion, which is equivalent to half of its budget deficit." Ray Dalio further explained that the U.S. government can only repay its debts by issuing more debt and "the central bank (Fed) printing money." This has created a situation where the market may become increasingly panicked. Dalio believes that the triggering factor for a major collapse could be a new round of large-scale quantitative easing or government control over the Fed. Signs of such events have already begun to "flicker or flicker," and he also raised similar points in his recent book "How Countries Die." Since such risks are not yet priced into the market, Ray Dalio recommended that investors allocate at least 15% of their investment portfolios to gold or Bitcoin. This can serve as a hedge against fiat currency and cash equivalents (such as bonds). However, he "strongly prefers" gold over Bitcoin personally because he doubts whether any central bank would consider cryptocurrency as a reserve currency. "Because everyone can understand and observe who is using it for what transactions, so it lacks privacy." Ray Dalio also stated that there are "doubts" about whether "the code can be cracked" or whether the Bitcoin protocol can be changed to make it an "effective" store of value. Given these concerns, gold is more important in Ray Dalio's own investment portfolio than Bitcoin. He said, "I have gold, and I have some Bitcoin, but not much."