Billionaire Ray Dalio, the mastermind behind Bridgewater Associates, is sounding the alarm for investors as the United States grapples with a staggering $37 trillion debt. In a recent appearance on the Master Investor podcast, Dalio advocated for allocating 15% of one’s portfolio to hard assets like gold or Bitcoin, as a safeguard against the depreciating value of paper currency. His insights come amid growing concerns over the fiscal stability of the nation, raising eyebrows among market watchers. As explored in our recent coverage of Billionaire Ray Dalio Urges Investors to Allocate 15% of Portfolios to Gold and Bitcoin, this recommendation underscores the growing appeal of hard assets in uncertain times.
A Hedging Strategy in Turbulent Times
Dalio’s recommendation is grounded in the belief that the US government will need to introduce approximately $12 trillion more in treasuries over the next twelve months. This, he argues, could further erode the dollar’s value. Recent Treasury data supports his concerns, forecasting a borrowing spree that could see $1 trillion in the third quarter of 2025 alone—significantly higher than prior projections. According to Dalio, such fiscal maneuvers inherently weaken fiat currencies, rendering gold and Bitcoin, which operate independently of central banks, as viable hedges.
However, Dalio remains partial to gold, citing its proven resilience against inflation and economic upheaval over the centuries. Bitcoin, although experiencing a meteoric rise to around $118,862, remains volatile—trading just 4% shy of its all-time high earlier this month. For those wary of its unpredictable nature, gold may offer a more stable alternative, while Bitcoin’s potential for high returns could appeal to those with a higher risk tolerance.
Rebalancing Portfolios Amid Debt Concerns
This isn’t Dalio’s first foray into cryptocurrency recommendations. Back in January 2022, he suggested a modest 1% to 2% allocation in Bitcoin. Now, with the US—and other Western nations like the UK—facing what he terms a “debt doom loop,” Dalio has tripled that suggestion. The pivot underscores the shifting investor sentiment in response to mounting national debts. He warns that these economic conditions may cause traditional currencies to lag behind hard assets, positioning gold and Bitcoin as crucial diversifiers when government debts spiral. For further insights, see our analysis of how Bitcoin is rallying on US deficit concerns, not hype.
Despite embracing Bitcoin for its diversification benefits, Dalio maintains that it won’t dethrone the dollar or euro in central bank reserves anytime soon. Public blockchains, while transparent, lack the privacy offered by gold transactions, which can be conducted discreetly once removed from vaults. This privacy aspect could be pivotal for those wishing to keep their financial maneuvers under wraps.
Navigating an Uncertain Financial Landscape
As the US edges closer to a debt time bomb, Dalio’s commentary invites both intrigue and skepticism from financial analysts and investors alike. While his call for a significant portfolio shift garners attention, it also raises questions about the broader implications for the cryptocurrency market and traditional financial systems. Could Bitcoin truly stabilize portfolios in the face of ballooning national debt? And will gold maintain its historic role as a financial safe haven?
These unresolved questions linger as the fiscal landscape continues to evolve. Investors must weigh the risks and rewards of diversifying with hard assets in an era of economic uncertainty. As Dalio’s insights echo through financial circles, the conversation about safeguarding wealth in today’s volatile climate remains far from settled.
Source
This article is based on: Bitcoin Is A Lifeline, Says Billionaire, As US Faces Debt Time Bomb
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
