Dalio's Bitcoin Stance Sparks Debate on Risk Mitigation
Ray Dalio, founder of Bridgewater Associates, has softened his stance on Bitcoin over the years. In 2017, he called it a bubble and said it's 'not an effective storehold of wealth.' However, in August 2026, he recommended that investors hold a small amount of Bitcoin to navigate the risk of a debt crisis.
Dalio considers non-government-produced money like Bitcoin as one way to mitigate this risk. He expects it will do relatively well. However, even Dalio's own allocation suggestion is limited, he recommends holding up to 2% of your portfolio in Bitcoin.
The Motley Fool disagrees with Dalio's recommendation that risk mitigation is a reason to hold the cryptocurrency. They argue that Bitcoin doesn't provide the same level of protection as gold, which tends to move in opposite directions to stocks and has historically held its value during bear markets.