American hedge fund manager and billionaire Ray Dalio recommended that 15% of your portfolio be allocated to Bitcoin or Gold in order to maximize for the future. “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 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 In January 2022, he made a recommendation.
Dalio’s remarks were made within the context America’s national debt crisis, US Treasury has ballooned at $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
The US Treasury released a report 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 dependence on debt for funding budget expenses. This has exacerbated concerns regarding its future fiscal trajectory.
Related: Solo Bitcoin miner scores $373,000 block reward
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 a diversifier of a portfolio, remains skeptical as to its potential as a reserve currency. He said he doubted that any central banks would use cryptocurrency for such a purpose, citing the lack of privacy of the transactions and their transparency.
“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 a money alternative.
Recently, Bitcoin and gold have reached new highs
Bitcoin and gold have both performed well in this current economic environment, reaching respective highs over the past few 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.
Magazine: Bitcoin inheritances: A guide for heirs and the not-yet-dead
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
