Ray Dalio, one of the richest people in the world today, recommends that Bitcoin should be on every investor’s portfolio, albeit in a small percentage. When asked what an effective allocation would be for the average investor, Dalio said that he thinks similarly to Billionaire Bill Miller, in that 1%–2% is does the job. According to him, the network is still hack-free, lacks any substantial competition, and the adoption rates of Bitcoin implicate it could pose a serious threat to gold as a hedge against inflation.
Dalio is in some position to make that call. He has been among the richest people in the world for a long time. It is important to note that he seems to be impressed with Bitcoin surviving and doing so well in the last decade. He also does not shy away from reiterating the fact that he does not have much favor for cash.
He did, however, mention a caveat while heaping praise on the rise of Bitcoin. Dalio drew attention to the fact that the excessive obsession within the global crypto community could possibly become its Achilles heel and lead to its downfall.
Being well known in his career for his proclivity towards diversification, he does bring up this concept and muses about the all-essential timing for it. He is taking the money that has been made in Bitcoin and investing in other areas. Mentions were made about the new NFT craze and how it, along with other coins, could act as different areas to invest. As of now, however, he holds Bitcoin in high regard alongside gold.
