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,” There is no such thing as a still. “strongly preferring gold to Bitcoin,” however.
Bitcoins are split in two.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 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 causing concern about future fiscal paths.
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Dalio noted that other Western countries — including the United Kingdom — face the same “debt doom loop” Their currencies will continue underperform in comparison to hard currency like 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 a diversifier of a portfolio, remains sceptical about its ability to serve as an asset. reserve currency. The central banker expressed doubt about the adoption of cryptocurrency as a currency in this role. Citing its transparency and lack of anonymity, the central banker cited the fact that the cryptography is not private.
“Governments can see who is doing what transactions on it,” He suggested that Bitcoin could be weakened by any vulnerabilities it may have in its code.
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
