Billionaire Investor Ray Dalio Backs Gold and Bitcoin for 15% Portfolio Allocation

Key Takeaways:

• Ray Dalio recommends that investors allocate 15% of their portfolios to gold and Bitcoin to hedge against rising macroeconomic risks.
• He warns that the U.S. and the UK are caught in a dangerous “debt doom loop,” which weakens the value of traditional currencies.
• With projections of Bitcoin reaching $1 million, several experts still predict strong performance in the year ahead.

On July 27, American billionaire and founder of hedge fund Bridgewater Associates, Ray Dalio, urged investors to allocate 15% of their portfolios to gold and Bitcoin. He explained that this mix could offer the best return-to-risk ratio, especially now that the U.S. is dealing with soaring national debt. 

Government Spending Exceeds Revenue by 40% with Limited Flexibility for Cuts

During an appearance on the Master Investor YouTube podcast, Ray Dalio revealed that while he owns a small amount of Bitcoin, he still prefers gold. 

However, he acknowledged that every investor decides on their gold and Bitcoin portfolios, as the two assets can play key roles in today's unstable environment.

Dalio’s comments came against the backdrop of America’s debt crisis, which is rooted in hard numbers. 

According to real-time data from the U.S. Treasury, the government’s total debt has climbed to $36.7 trillion. 

Dalio pointed out that government spending exceeds revenue by 40%, leaving little room for meaningful budget cuts.

The man has a point. https://t.co/zaUGGjx6im pic.twitter.com/tIF8XX7KRu

— Bitwise (@BitwiseInvest) July 28, 2025

He explained that the U.S. can only continue to meet its obligations by issuing even more debt and relying on the Federal Reserve to print more money. This strategy, he warned, is not sustainable.

The government’s debt burden is now six times higher than its annual income. Interest payments alone have surged to $1 trillion a year, consuming half of the federal budget deficit. 

These figures, Dalio said, highlight a system that is spiraling toward crisis.

Recent government forecasts support his concerns. On July 28, the U.S. Treasury released updated projections, revealing it would need to borrow $1 trillion in Q3 ($453 billion more than previously expected). 

This issue isn’t limited to the U.S. Dalio also pointed to countries like the UK, which face the same “debt doom loop.” 

The UK is on the verge of bankruptcy – national debt has hit £2.7 trillion, almost 100% of GDP.

That means the country owes as much as it earns.

That kind of debt fuels inflation, weakens your savings & makes you poorer.

And there’s only one thing the government will do next:…

— Rob Moore (@robprogressive) July 6, 2025

Like the U.S., these nations are trapped by rising debt, shrinking options, and weakening fiat that will likely continue to underperform against hard assets like gold and Bitcoin.

Robert Kiyosaki Projects Buying Opportunities for Gold and Bitcoin

Dalio’s message echoes other voices in the financial world. Robert Kiyosaki, author of Rich Dad, Poor Dad, recently offered a similar view on the direction of the U.S. economy and the role of gold and Bitcoin.

Kiyosaki warned that economic bubbles are about to burst. He believes that major sectors of the U.S. economy are on the edge of collapse. When they fall, gold, silver, and Bitcoin may also take a hit.

However, Kiyosaki doesn’t see this as bad news. On the contrary, he considers it a buying opportunity.

If prices drop sharply, he plans to buy more. His confidence in Bitcoin and gold as long-term stores of value remains strong, even in the face of short-term volatility.

Many investors share the long-term outlook.

Matt Hougan, Chief Investment Officer at Bitwise, believes that Bitcoin investment could outperform historical expectations in the coming years. 

Unlike previous cycles where Bitcoin followed a strict four-year pattern tied to halving events, Hougan suggests the market may break out of that rhythm this time. He attributes this to improved regulatory clarity and growing institutional adoption. 

🚨DID I HEAR SUPER CYCLE???

The four-year cycle is dead and adoption killed it.@Matt_Hougan says we're going higher in 2026.

Early profit takers will be left behind!!!

Full break down with @JSeyff and @Matt_Hougan in comments👇 pic.twitter.com/Ffn9penapN

— Kyle Chassé / DD🐸 (@kyle_chasse) July 25, 2025

Meanwhile, Michael Saylor, founder and CEO of Strategy, is doubling down. His firm, the largest corporate holder of Bitcoin, recently revealed plans to raise $500 million by issuing a new class of preferred stock. 

The money will be used to buy even more Bitcoin. Saylor has also been consistent in his bold forecast. He recently stated that Bitcoin is going to a million.