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,” It is not yet. “strongly preferring gold to Bitcoin,” however.
Bitcoin is split into two distinct categories: Bitcoin and Bitcoin Cash.BTCGold “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 pointed out the US will need to sell another $12 trillion in Treasurys to service the debt.
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, increasing US government’s dependence on debt for funding budget expenditures and creating more concerns over its fiscal future.
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 is still sceptical about Bitcoin as a reserve currency
Dalio is skeptical of the potential for Bitcoin to be used as an investment vehicle. reserve currency. The central banker expressed skepticism that the crypto currency would be adopted in this role. Citing its transparency and lack of anonymity, the director cited the fact that the transactional data 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.
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
