Could Bitcoin (BTC) be a remedy for the growing threat of US debt? Yes, according to billionaire Ray Dalio, who advises everyone to use cryptocurrency as a diversification asset.
American billionaire advises betting on Bitcoin
Ray Dalio has long considered Bitcoin (BTC) to be an attractive alternative to gold. He has just proven this once again by advising investors to allocate 15% of their assets to cryptocurrency. Speaking on the Master Investor podcast, he said:
[If] you optimized your portfolio for the best risk-reward ratio, you would have about 15% of your money in gold or Bitcoin.
This is a significant increase: in January 2022, Ray Dalio considered an allocation of 1-2% in BTC to be appropriate.
What has changed? The billionaire now believes that the weight of US debt has become enormous and that assets must be found to protect against the devaluation of the dollar.
The problem is currency devaluation.
The burden of US debt
US debt currently stands at $36.7 trillion and is growing by $55,000 per second. It is also estimated that the government will need to issue several trillion dollars in Treasury bonds to continue functioning in the coming years.
However, Ray Dalio is not “all in” on Bitcoin. He claims to own “a little,” but strongly prefers gold at this stage. This is partly because gold is less traceable than BTC:
Governments can see who is making what transactions on [Bitcoin].
This year, both Bitcoin (BTC) and gold prices have hit record highs amid debt threats, geopolitical tensions, and a weakening dollar.
Beyond Ray Dalio’s advice, we are currently witnessing a rush towards Bitcoin ETFs and cryptocurrency treasuries. This clearly demonstrates the considerable enthusiasm surrounding the largest cryptocurrency at this stage.
