Dalio Favors Gold Over Bitcoin Amid AI Bubble Risks

Billionaire Ray Dalio has expressed his preference for gold over Bitcoin as a safe-haven asset, citing concerns about an AI bubble. Speaking on the Diary of a CEO podcast, Dalio noted that the AI sector is showing signs of being in a bubble, with increasing interest rates and leveraged positions by retail traders.

He warned that if prices of AI stocks drop, investors will seek alternative assets like gold and Bitcoin. However, Dalio favors gold over BTC due to its tendency to gain value when other assets decline.

Dalio recommends allocating 5-15% of a portfolio to gold, which he considers a 'hard currency.' His comments come after the FSB Chief's warning that a drop in AI stocks could trigger another financial crisis like the one between 2007 and 2009.