Dalio suggests allocating 15% of investments to Bitcoin and gold to hedge against US debt risk.

On July 28, billionaire Ray Dalio suggested that investors allocate 15% of their portfolios to Bitcoin and gold to hedge against the rising U.S. debt and economic instability.

Ray Dalio, the founder of Bridgewater Associates, stated in a podcast that the macroeconomic risks of rising government debt in the U.S. and other countries have not yet been absorbed by the market, which may ultimately face a significant downturn. The U.S. government "spends 40% more than it earns and cannot truly cut spending; its accumulated debt is six times its income, and its annual interest payments amount to $1 trillion, which is half of its budget deficit."

Ray Dalio further explained that the U.S. government can only repay its debts by issuing more debt and "printing money by the central bank (the Federal Reserve)." This has led to a situation where the market may become increasingly panicked. Dalio believes that the factors that could trigger a major crash might be a new round of large-scale quantitative easing policies, or the government controlling the Federal Reserve. Signals of such events have begun to "flash or sway." He also presented similar views in his recently published book, "How Countries Go Bankrupt."

Due to the fact that such risks have not yet been factored into market prices, Ray Dalio suggests that investors allocate at least 15% of their portfolios to gold or Bitcoin, which can serve as a hedging tool against fiat currencies and cash equivalents (such as bonds). However, he personally "strongly leans towards" gold rather than Bitcoin, as he doubts whether any central bank would adopt cryptocurrency as a reserve currency, "because everyone can understand and observe who is using it for what transactions, so there is no privacy."

Ray Dalio also stated that there is "doubt" about whether "code can be cracked" or whether the protocol of Bitcoin can be changed to serve as a "store of value." Given these concerns, gold is more important than Bitcoin in Ray Dalio's own portfolio. He said, "I have gold, and I also have some Bitcoin, but not much."