Ray Dalio: US Debt Crisis Looms, But Gold Still Better Than Bitcoin

Bridgewater Associates founder Ray Dalio has kept his Bitcoin investment to “little, like 1% kind of” while actively promoting gold as a portfolio safeguard. Speaking on CNBC’s Squawk Box at the World Economic Forum in Davos, Dalio flatly rejected increasing his cryptocurrency stake despite Bitcoin’s surge past $100,000.

“No, no,” Dalio responded when asked if he would boost his Bitcoin holdings to 10%. He described Bitcoin as “not going to be bought by alternative governments right now,” adding that it remains “easy to control and follow.”

This comes up as the investor warns about mounting US debt concerns, which reached $1.8 trillion in fiscal 2024. “We have a situation where we have too much debt and we’re producing it at a fast pace. So yes, we have to think about alternative monies,” Dalio told Yahoo Finance’s Opening Bid podcast. He sees these fiscal pressures forcing investors to seek alternative assets.

According to Dalio, gold has a unique market role, and a 10-15% portfolio allocation “will limit your risk” — countering the recent wave of Bitcoin coverage on financial networks, even as cryptocurrency gains mainstream attention following Trump’s re-election.

“And by the way, this is not individuals who are just thinking about it. These are countries and central bankers who are thinking about it,” Dalio says about the shift toward alternative investments. “The changing and the holdings of bonds and debt as an asset, and the buying of gold and other assets in terms of the mix is a reality.”

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