Ray Dalio: Put 15% in Gold or Bitcoin

Legendary investor Ray Dalio is issuing a warning that should concern every American: fiat currencies, led by the U.S. dollar, are on the brink of a historic devaluation—and it’s the reckless spending in Washington that’s to blame.

Dalio, founder of Bridgewater Associates and one of the most successful hedge fund managers in history, appeared on The Master Investor Podcast this week with a sobering message: the debt-fueled monetary system is nearing its breaking point.

And if you want to protect your wealth, you’d be wise to hold at least 15% of your portfolio in gold or Bitcoin.

The full interview with Ray Dalio is available on YouTube:

A Fiscal Crisis Made in Washington

According to Dalio, the U.S. is now spending 40% more than it collects in taxes. The federal government is racking up $7 trillion in annual spending while bringing in just $5 trillion in revenue. That gap is growing, not shrinking—and the debt is compounding fast.

“This isn’t sustainable,” Dalio said bluntly. “We are at the point of no return.”

With more than $37 trillion in national debt and over $1 trillion in annual interest payments alone, the only path forward—short of a political miracle—is more borrowing and more money printing. That means Americans are staring down the barrel of a classic fiat devaluation, just like the economic disasters of the 1930s and 1970s.

“Hard Currency” Is the Escape Hatch

In Dalio’s view, today’s crisis demands looking beyond government-backed currencies and into what he calls “hard currencies”—namely, gold and Bitcoin.

“If you were neutral and just optimizing for risk and return, you’d have about 15% of your money in gold or Bitcoin,” he said.

Dalio makes no secret that he prefers gold, calling it the “purest play” for a store of value. He also notes that gold recently overtook the euro as the world’s second-largest reserve currency, second only to the U.S. dollar.

While Dalio owns a small amount of Bitcoin personally, he’s skeptical of its long-term use as a central bank reserve asset. Still, he acknowledges its growing popularity as “alternative money” thanks to its fixed supply and global accessibility.

Regardless of which asset you choose, the message is clear: diversify away from fiat currencies now—or pay the price later.

Related: Rich Jacoby - Why Americans are Ditching the Dollar for Gold and Silver

All Fiat Currencies Are in Trouble—Not Just the Dollar

Dalio also warned that the looming crisis isn’t unique to the United States. From the UK to Japan to the Eurozone, Western governments are buried in unsustainable debt and running up massive deficits. In his words, “they will all tend to go down together… in relation to hard currencies like gold.”

In other words, switching from dollars to euros won’t save you. Fiat money across the board is losing purchasing power—fast.

As central banks ramp up money printing to finance bloated bureaucracies and entitlement programs, Dalio says we’re headed for a monetary reckoning. The signs—rising bond yields, falling trust in government, and whispers of capital controls—are already flashing.

This Isn’t a Drill—It’s a Wake-Up Call

Dalio’s message cuts through political spin and Wall Street denial. The U.S. is behaving like a bankrupt empire: spending money it doesn’t have, refusing to cut, and pushing the consequences onto savers, retirees, and the middle class.

And yet, Washington elites keep kicking the can down the road—expecting Americans to trust the system even as it erodes their purchasing power and retirement security.

Dalio’s advice is about financial survival.

“The real issue is the devaluation of money,” he said. “This is what happens in every empire when the debt gets out of control.”

Protect Yourself, Because the Government Won’t

For conservative Americans who believe in personal responsibility, limited government, and sound money, Dalio’s warning is a powerful reminder: Washington’s failures don’t have to become your losses.

While the political class plays games with the nation’s balance sheet, it’s up to individuals to act. Diversifying with real assets like gold and Bitcoin isn’t speculation—it’s self-defense.

Whether you lean more toward the centuries-long track record of gold or the decentralized future of Bitcoin, the goal is the same: opt out of a broken system before it breaks you.