American billionaire Ray Dalio, a hedge fund manager who manages a $13 billion portfolio has suggested that 15% be invested in Bitcoin or gold. “best return-to-risk ratio” In light of America’s crippling debt problems and currency devaluation.
“[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,” The founder of hedge fund firm Bridgewater Associates said During an appearance on the Master Investor podcast on Sunday.
Dalio said he has “some Bitcoin, but not much,” There is no such thing as a still. “strongly preferring gold to Bitcoin,” however.
Bitcoin is split into two distinct categories: Bitcoin and Bitcoin Cash.BTC( and gold “is up to you,” Dalio said. The 15% Dalio suggests is an increase of a large amount from previous suggestions. 1% to 2% Bitcoin allocation He recommended that in January 2022.
Dalio made his comments in context. America’s national debt crisis, US Treasury’s debt has risen to $36.7 trillion. data shows.
“The issue is the devaluation of money,” Dalio noted that, in order to pay off the US debt, the government would likely have to print another 12 trillion dollars of Treasurys within the year.
Dalio’s argument is reflected in the latest US Treasury Report
Report released by the US Treasury on Monday projected another $1 trillion in new borrowing in the third quarter — $453 billion more than previously estimated — due to weaker cash flows and lower reserves.
Treasury is also expecting to borrow another $590 Billion in the fourth quarter, adding to US government’s increasing reliance on borrowing to cover budget costs and escalating concerns regarding its future fiscal trajectory.
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Dalio noted that other Western countries — including the United Kingdom — face the same “debt doom loop” Their currencies will continue underperforming relative to hard currency like Bitcoin and gold — which he described as an “effective diversifier.”
Dalio is still sceptical about Bitcoin as a reserve currency
Dalio, despite advocating Bitcoin as a diversifier of a portfolio, remains sceptical about its ability to serve as an asset. reserve currency. The central banker expressed his doubts that the crypto currency would be adopted in this role. Citing its transparency and lack of anonymity, the cryptocurrency’s transactions are not private.
“Governments can see who is doing what transactions on it,” He said that potential weaknesses in Bitcoin code could undermine the effectiveness of Bitcoin as an alternative currency.
Recent Bitcoin and Gold Highs
Bitcoin and Gold are both performing well under the current economic conditions, with their respective highs reaching in recent months.
Bitcoin is currently trading at $118,100 — around 4% below its July 14 all-time high of $123,230, TradingView data shows — while gold has reached new highs multiple times over the past few months.
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Source: cointelegraph.com
