Billionaire Ray Dalio recommends a ‘reasonable’ allocation of 1% to 2% of Bitcoin

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Hedge fund manager Ray Dalio remains bullish on Bitcoin (BTC) in 2022, listing three main reasons Bitcoin is “awesome.” In a recent interview with The Investors Podcast, he talked about gold and BTC as a hedge against inflation.

Asked by interviewer William Green about what a sane allowance would be for a layman, Dalio said he agreed with fellow billionaire Bill Miller’s suggestion that 1% to 2% is the right allowance.

He explained that the network has never been hacked; he has no better competitor; and BTC adoption rates suggest that it could further reduce the market cap of gold:

“Bitcoin is now worth around $ 1,000 billion, while gold that is not held by central banks and is not used for jewelry making is worth around $ 5,000 billion. I keep that in mind because I think over time inflation hedging assets should probably do better. ”

The founder of the world’s largest hedge fund, Bridgewater Associates, Dalio echoed comments made last year during the recent interview with the podcast, saying he was impressed that Bitcoin had survived the past decade while reiterating that he was “not in favor of cash”.

Related: There’s a Bitcoin Boom Among Baby Boomers, BTC Markets Reports

Dalio cautioned his thoughts on the rise of Bitcoin, pointing to the fanaticism surrounding the Bitcoin community as a possible Achilles heel, and as to be expected for the investor known as “Mister Diversification” , he also asked a broader question regarding digital assets. :

“When does someone collect, take the money they’ve made in Bitcoin, then diversify it and, in other words, move on? “

It has become lyrical about tokens and other non-fungible coins as potential diversification destinations. For now, however, BTC has a place in its “inflation hedging asset class” alongside gold.

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