Ray Dalio Recommends 15% Allocation To Bitcoin Or Gold

Billionaire investor Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, recently advised investors to allocate around 15% of their portfolios to Bitcoin or gold as a way to hedge against rising U.S. debt levels and declining USD value.

1. U.S. May Need $12 Trillion in New Debt – National Borrowing Reaches Critical Point

According to Dalio, the United States is facing an unsustainable debt trajectory, with total national debt exceeding $36.7 trillion. He warned that the U.S. government may need to issue up to $12 trillion in new bonds to keep up with its debt obligations in the coming year.

Recent data from the U.S. Treasury supports this outlook. The government now expects to borrow $1 trillion in Q3 2025, a massive $453 billion increase over prior estimates, and an additional $590 billion in Q4. This highlights the country’s growing reliance on debt financing and raises serious concerns about fiscal sustainability.

2. Bitcoin And Gold Seen As “Financial Insurance” As Fiat Currencies Weaken

Speaking on the Master Investor podcast, Dalio stated:

“If you're optimizing for the best risk-return ratio in your portfolio, about 15% should be allocated to gold or Bitcoin.”

While he personally favors gold over Bitcoin due to its historical stability, Dalio emphasized that the specific allocation between the two assets depends on each investor's risk appetite. This marks a notable increase from his earlier guidance in January 2022, when he recommended only 1–2% exposure to Bitcoin.

3. Bitcoin Unlikely To Become a Global Reserve Currency, Says Dalio

Although Dalio acknowledges Bitcoin’s value as a diversification tool, he remains skeptical about its future as a global reserve currency due to:

 - The transparent nature of blockchain, which allows governments to track transactions

 - Privacy concerns and potential vulnerabilities in the codebase

He warns that while many Western nations, including the U.S. and U.K., are falling into a “debt spiral,” fiat currencies may continue to weaken—making hard assets like Bitcoin and gold more attractive for long-term wealth preservation.

4. Bitcoin And Gold Surge Amid Global Economic Uncertainty

Both assets have performed strongly in recent months:

 - Bitcoin is currently trading around $118,100, just 4% below its all-time high of $123,230 reached on July 14

 - Gold has been setting new record highs consistently over the past few months

This rally underscores growing investor interest in store-of-value assets, particularly as inflation fears and macroeconomic instability continue to rise worldwide.