Wealthy investor Ray Dalio advises allocating 15% of one's portfolio towards gold or Bitcoin (BTC) in preparation for a devaluation of money in the near future.

Wealthy investor Ray Dalio advises allocating 15% of one's portfolio towards gold or Bitcoin (BTC) in preparation for a devaluation of money in the near future.

In a recent interview on the Master Investor podcast with Wilfred Frost, Ray Dalio, co-chief investment officer of Bridgewater Associates, advocated for a diversified investment strategy that includes allocating about 15% of a portfolio to either gold or Bitcoin. Dalio's stance reflects increased concerns about a potential "debt doom loop" with the US government issuing massive new Treasury debt.

Dalio views both Bitcoin and gold as effective diversifiers that help preserve wealth amid the risks of currency devaluation and inflation caused by the US debt crisis. Although he holds some Bitcoin, he still strongly prefers gold, calling it the "purest wealth preservation tool." He considers the exact split between Bitcoin and gold flexible, depending on investor preference.

Dalio expressed some skepticism about Bitcoin's role as a reserve currency, citing visibility of transactions to governments and potential blockchain vulnerabilities. However, he still regards Bitcoin as a valuable store-of-value alongside gold for portfolio diversification.

The risk-reward ratio, or the potential gain for every dollar risked on an investment, is a concept Dalio uses to determine the best return-to-risk ratio. His 15% suggestion aims to optimize this ratio amid macroeconomic uncertainty, high interest rates, and geopolitical volatility.

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Dalio also warned of a potential 1970s-style period of stagflation, characterized by high inflation, high unemployment, and low economic growth. However, the article does not repeat earlier facts about the potential 1970s-style period of stagflation or Ray Dalio's investment advice.

Lastly, the article covers topics related to finance, including macroeconomics, Bitcoin, Ethereum, crypto, web 3, and more. It is categorized under Bitcoin, Ethereum, Trading, Altcoins, Futuremash, Financeflux, Blockchain, Regulators, Scams, HodlX, and Press Releases.

Bitcoin's and gold's roles as valuable stores-of-value for portfolio diversification are emphasized by Ray Dalio, who views them as effective wealth preservation tools due to the potential risks of currency devaluation and inflation caused by the US debt crisis. Despite his skepticism about Bitcoin's role as a reserve currency and potential blockchain vulnerabilities, Dalio still regards Bitcoin as a viable option alongside gold in a diversified investment strategy.

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