Famous investor Dalio recommends allocating 15% of the portfolio to Bitcoin and gold.

## Recommended to allocate 15% to Bitcoin and gold

Ray Dalio, the founder of one of the world's largest hedge funds, Bridgewater Associates, recommended on the 29th in a CNBC podcast that investors allocate 15% of their portfolio to Bitcoin (BTC) and gold. This was presented as advice for investors seeking the optimal risk-return ratio.

Mr. Dalio has expressed a stronger support for gold than for Bitcoin, stating, "I hold a little gold and Bitcoin, but not much." He also indicated that the likelihood of central banks adopting Bitcoin as a reserve currency is low.

On the other hand, concerns about the serious fiscal situation of the U.S. government are behind the recommendations. The government is spending more than 40% of its revenue, and the annual interest payments account for half of the fiscal deficit, continuing the current situation. It has warned that about $12 trillion in additional treasury issuance will be needed next year for debt repayment.

"The devaluation of currency is a problem," Mr. Dalio pointed out, analyzing that all Western countries, including the United States, are caught in a "vicious cycle of debt default." He predicts that, similar to the 1970s and 1930s, Western economies tend to decline simultaneously.

It also indicates that there is a perception that macroeconomic risks are not properly reflected in the bond and stock markets, and warns that large-scale implementation of quantitative easing and government control of the Federal Reserve could trigger a market crash, with such signs "beginning to blink."

In May, when the United States lost its top rating from all three major rating agencies, Mr. Dalio pointed out that the ratings "underestimate the actual credit risk" and expressed the view that inflation due to money printing represents a historically greater risk.

He evaluated that gold and Bitcoin function as "effective diversification investments" in times of crisis, but he also expressed concerns about the privacy issues in transactions and the long-term stability of the code regarding Bitcoin.

Both assets are currently in a situation where they have updated their all-time highs this year.