American Billionaire and Hedge Fund Manager Ray Dalio recommends a 15% portfolio allocation to Bitcoin or gold to optimize for the “best-to-risk ratio” to the light of American debt problem and lowering money.
“(If) you optimized your portfolio for the best-pilgrimage ratio, you will have about 15% of your money in gold or bitcoin,” the founder of Hedge fund firm Bridgewater Associates Says During a look at Master investor Podcast on Sunday.
Dalio said he had “some Bitcoin, but not much,” and “Bitcoin still preferred gold,” however.
But the exact division between Bitcoin (Btc) And the gold “is up to you,” Dalio said. His 15% suggestion marks a sharp increase from 1% to 2% Bitcoin allocation He recommended in January 2022.
Dalio’s comments were made in the context of National American debt crisis, which has a wolf at $ 36.7 trillion, US Treasury Data Shut up.
“The issue is to lower money,” Dalio said while pointing out that the US government is likely to issue another $ 12 trillion worth of treasurys next year to serve its debt.
Latest US Treasury Report reflects Dalio’s point
A US Treasury report released on Monday expected Another $ 1 trillion in the new borrowing in the third quarter – $ 453 billion more than previously estimated – due to a weaker cash flow and lower reserve.
Treasury also hopes to borrow $ 590 billion in Q4, adding to the US government’s growing hopes of debt to fund budget costs and worries about the fiscal’s future path.
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Dalio mentioned that other western countries – including the United Kingdom – face the same issue as “Debt Doom Loop” and their money will continue not to change the relative -child with hard currencies such as Bitcoin and gold – which he described as an “effective diversifier.”
Dalio still doubts about Bitcoin becoming a reserve money
Despite advocating for Bitcoin as a portfolio portfolio, Dalio remains doubtful about its potential to serve as a Reserve currency. He expressed doubt that any central bank would adopt cryptocurrency on such a paper, citing the lack of privacy and the clear nature of its transactions.
“Governments will see who is doing what the transactions are here,” he said, suggesting that any potential weakness in the Bitcoin code could ruin its effectiveness as an alternative currency.
Bitcoin and gold hit recent highs
Bitcoin and gold play strongly in the current economic climate, preventing their highs in recent months.
Bitcoin is currently trading for $ 118,100-around 4% below July 14 All-Time high $ 123,230, TradingView Data Shows – as gold has reached new highs several times over the past few months.
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