Dalio Warns of Debt Crisis, Recommends Gold and Bitcoin Allocation

Ray Dalio, founder of Bridgewater Associates and estimated net worth over $15 billion, is advising investors to allocate 'a bit' of their portfolio to Bitcoin in response to a looming debt crisis. In a LinkedIn post on Friday, he recommended having between 10% to 15% of one's portfolio in gold to reduce risk.

Dalio cited internal political and external geopolitical conflicts as risks that make debt assets like bonds more vulnerable. He suggested being overweight in gold and Bitcoin compared to other assets. This is not the first time Dalio has mentioned Bitcoin; he previously stated it cannot replace gold as a store of value and warned about privacy concerns and threats from quantum computing.

In 2022, months before a significant crypto market downturn, Dalio said holding between 1% to 2% of BTC in one's portfolio was 'reasonable'. He also hinted at the possibility of a US debt crisis within three years if the current course is not changed.