In an interview with CNBC on July 28, billionaire Ray Dalio, founder of the massive investment firm Bridgewater Associates, shared his thoughts on Bitcoin as a safe investment channel.
According to Dalio, to create an optimal investment portfolio, investors should allocate 15% of their assets to high-risk, high-reward channels like gold or Bitcoin, depending on personal preference.
While he admits to favoring gold, Dalio revealed that he holds a certain amount of Bitcoin.
During the interview, he emphasized the difficulties facing the U.S. economy due to serious public debt issues, which are causing the USD to lose value—a topic he has raised multiple times in previous speeches and interviews.
Dalio believes that the U.S. has crossed the “point of no return” in managing its public debt, stating that the U.S. Treasury may need to issue an additional $12 trillion in bonds over the coming years just to pay interest on existing debt.
This issue extends beyond the U.S. and is becoming a headache for many other Western countries where public debt is also a growing concern.
Dalio predicts that, similar to economic crises in the 1930s and 1970s, the situation will reach a breaking point and subsequently collapse. When that happens, all assets will depreciate compared to “precious currencies” like gold, making gold and new forms of currency like Bitcoin a “safe haven” for investors.
Related: U.S. and China Agree to Delay Additional Tariffs for 90 Days
Despite his positive assessment of Bitcoin, Ray Dalio still prefers gold for several reasons:
- The currency function of Bitcoin has yet to be fully validated.
- Concerns remain regarding security vulnerabilities and privacy on the Internet.
The use of Bitcoin as an inflation hedge is gaining support from influential figures on Wall Street:
- Larry Fink (CEO of BlackRock): Predicts Bitcoin could reach $700,000.
- Bitwise: Believes Bitcoin could hit $200,000 this year.
These predictions highlight the growing confidence among professional investors in Bitcoin’s potential as a long-term investment channel.