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” The United States is facing a crippling problem of debt and 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 creator of hedge fund firm Bridgewater Associates said The appearance of the Master Investor podcast on Sunday.
Dalio said he has “some Bitcoin, but not much,” It is not yet. “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’s remarks were made within the 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 pointed out the US will need to sell another $12 trillion in Treasurys to pay its debt over the coming year.
The latest US Treasury report confirms Dalio’s view
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 worsening fears about future fiscal trajectory.
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Dalio noted that other Western countries — including the United Kingdom — face the same “debt doom loop” The issue is that the currencies of these countries will continue to perform below par with hard currencies such as Bitcoin and gold — which he described as an “effective diversifier.”
Dalio remains sceptical that Bitcoin will become a currency of reserve
Dalio, despite advocating Bitcoin as an asset diversifier for your portfolio, remains skeptical that it can serve as one. reserve currency. He expressed his doubts that any central banks would use cryptocurrency for such a purpose, citing the lack of privacy as well as the transparency of the transactions.
“Governments can see who is doing what transactions on it,” ‘Any potential vulnerability in Bitcoin’s code can undermine its effectiveness as a money alternative,’ he suggested.
Recently, Bitcoin and gold have reached new 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
