NEW YORK | July 29, 2025 — Ray Dalio, founder of Bridgewater Associates, has sharply revised his long‑standing investment guidance. He now recommends allocating around 15% of one’s portfolio to Bitcoin or gold, citing growing concerns over the United States’ surging debt levels and the threat of a “debt doom loop.”
This marks a significant departure from his earlier advice in 2022, when he suggested a modest 1–2% allocation to Bitcoin. Dalio’s updated view signals a broader institutional shift toward alternative assets that can hedge against currency devaluation, inflation, and fiscal instability.
Key Points
- Dalio suggests 15% allocation to Bitcoin or gold for better return-to-risk balance.
- The U.S. is projected to issue nearly $12 trillion in new Treasury bonds over the next 12 months.
- Dalio warns this could trigger a self-reinforcing debt spiral—a “doom loop.”
- While he personally prefers gold for its historical reliability, he acknowledges Bitcoin’s role as a digital store of value.
- The billionaire remains skeptical of Bitcoin as a reserve currency due to transparency and code risks, but supports its use as a portfolio diversifier.
Dalio’s Perspective
Ray Dalio reiterated his macroeconomic concerns in a recent interview, explaining that without a drastic reduction in the federal deficit—targeting 3% of GDP or lower—the U.S. could face a long-term economic crisis.
His comments align with mounting worries over debt servicing costs, inflationary pressures, and weakening confidence in fiat currency systems. He emphasized that both Bitcoin and gold offer strategic protection in the current economic climate.
Market Context
- U.S. national debt now exceeds $36.7 trillion, with debt service costs nearing record highs.
- Bitcoin is trading near $118,000, just below its all-time high.
- Gold has continued climbing in value amid global economic uncertainty.
- Institutional investors are increasingly turning to hard assets to hedge against volatility.
Portfolio Strategy
| Asset Type | Suggested Allocation | Purpose |
|---|---|---|
| Bitcoin & Gold | Up to 15% | Hedge against inflation & currency risk |
| Bonds/FI Assets | Lower exposure | Vulnerable to interest rate spikes |
| Fiat Currencies | Reduced preference | Declining long-term purchasing power |
Dalio clarified that investors can choose their own blend between gold and Bitcoin, based on risk tolerance and goals. He remains bullish on gold but believes Bitcoin has earned its place as a serious portfolio component.
Conclusion
Ray Dalio’s latest recommendation is not merely a tweak—it’s a warning shot. In a world awash with debt and financial uncertainty, traditional strategies may no longer be sufficient. For investors seeking stability, diversification, and real value preservation, Bitcoin and gold now represent more than just alternatives—they are insurance.
