Ray Dalio Says 15% Bitcoin Could Be Key for Crisis-Proof Portfolios

 

15% Bitcoin could be an optimal allocation for investors seeking to safeguard their wealth against currency devaluation and economic instability, according to Bridgewater Associates founder Ray Dalio. Speaking on The Master Investor Podcast with Wilfred Frost, Dalio highlighted Bitcoin’s growing role as both a hedge and a store of value in a shifting macroeconomic landscape.

Dalio argued that the global economy is entering a period of structural decline in fiat currencies, similar to the 1930s and 1970s, when hard assets such as gold gained prominence. While he emphasized that gold remains his personal preference, he acknowledged that Bitcoin now deserves a place in the conversation about resilient portfolio construction.

 

15% Bitcoin or Gold for an Optimized Risk–Return Mix

Dalio explained that in a neutral, risk-optimized portfolio—one built without strong market biases—around 15% should be allocated to gold or Bitcoin. “If you were optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or bitcoin,” he said.

While critics often cite Bitcoin’s volatility and uncertain regulatory environment, supporters highlight its decentralized nature, finite supply, and independence from government-controlled monetary systems. For Dalio, these attributes give Bitcoin merit, but he remains cautious, holding a smaller position in BTC than in gold.

Historical Parallels Strengthen the Case for Hard Assets

Dalio pointed to historical cycles in which high debt, inflation, and geopolitical instability eroded fiat currency value, driving investors toward alternative stores of wealth. In his view, today’s environment mirrors those conditions, suggesting that hard assets—whether gold or Bitcoin—will be critical for protecting purchasing power.

He also acknowledged Bitcoin’s limitations as a potential reserve currency, citing transparency issues and lack of privacy in transactions. Nevertheless, he sees its role in modern portfolios expanding as macroeconomic pressures mount, making disciplined allocation more important than ever.

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