Investors Should Allocate 1% of Their Portfolio to Bitcoin — Billionaire Ray Dalio
Bitcoin value might be down, but its potential is very much alive and worth investing in. That’s what billionaire and Bitcoin advocate Ray Dalio thinks of the crypto king.
Ray Dalio Advises Investors to put 1-2% of Their Portfolio in Bitcoin
The founder of the world’s largest hedge fund, Bridgewater Associates, believes that every investor should dedicate a small portion of their portfolio to Bitcoin.
He made this remark in a recent interview on The Investors Podcast. In line with his bullish views on Bitcoin, Dalio gave three reasons why Bitcoin is impressive.
These include its adoption rate, extraordinary security as it has never been hacked, and its position as the premier cryptocurrency above all others. Thus, he supports the opinion of fellow billionaire Bill Miller who posited that investors should have 1 – 2% of their portfolio in BTC
Dalio further described both Bitcoin and Gold as the biggest inflation hedge. According to him,
Bitcoin now is worth about $1 trillion, whereas gold that is not held by central banks and not used for jewelry is worth about $5 trillion. When I look at that, I keep that in mind because I think, over time, inflation hedge assets are probably likely to do better.
The hedge fund manager is very bullish on Bitcoin. He mentioned the possibility that Bitcoin might eat into gold’s market capitalization, given its adoption rate.
While this is not the first time the billionaire is talking about Bitcoin as he used to be a vocal critic of the crypto king. Then, he was of the opinion that the volatile nature of the asset might dissuade investors.
Notably, Dalio is not the only one sharing a bullish view of the asset. Earlier this year, the president of El Salvador, Nayib Bukele, predicted that Bitcoin would reach $100k this year. Whales have also been quite active by buying the dip this year.
Bitcoin Lost Over 7% in 24 Hours
However, Bitcoin price action continues to be a cause of concern for investors. The coin has lost more than 20% of its value in the past 90 days, and it’s not looking like that will end anytime soon.
In the past 24 hours alone, it has shed over 7% of its value and currently trades below $43k. If the trend continues, it might reach a new record low in the last 30 days.
It is important to note that the most recent sell-off was caused by FED releasing minutes of its FOMC meeting where it stated that there was a need to tighten the monetary policy. In the last 24 hours, the asset had traded for as low as $42,645 and a high of $46,619.