Cash is trash. It’s a phrase Ray Dalio has repeated so often it’s practically his catchphrase. But lately, the billionaire founder of Bridgewater Associates has shifted his focus from what you shouldn't own to what you absolutely must have in your pocket if the global economy has a "heart attack."
If you've been watching the news in early 2026, you know things feel a bit shaky. Debt is piling up. The U.S. national debt is north of $37 trillion, and the deficit is yawning wider every single day. Honestly, it's enough to make anyone want to stuff their life savings under a mattress.
But Dalio says don't do that. Instead, he’s been shouting from the rooftops about a very specific strategy: a 15% combined allocation to gold and Bitcoin.
It’s a huge jump. For years, Dalio was the "gold guy" who barely tolerated crypto. Now? He’s calling Bitcoin a "younger brother" to gold, though he still has some serious favorites.
The 15% Hedge: Why Dalio Mixed the Old and the New
Most financial advisors will tell you to keep maybe 2% or 5% in "alternative" assets. Dalio thinks that’s way too low for the world we live in now. During his appearance on the Master Investor Podcast and subsequent interviews through late 2025, he laid out a case for 15%.
Why 15%? Because we are in a late-stage big debt cycle.
The math is pretty grim. The U.S. government is spending roughly 40% more than it takes in. To pay for that, they have to print money. When you print money, the value of the dollars in your bank account goes down. It’s a silent tax.
Dalio calls this the "devaluation of money." He believes we’ve reached a point of no return where the only way to service the debt is to keep the printers running.
"If you were optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin." — Ray Dalio
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This isn't just theory. Bitwise actually stress-tested this ray dalio gold bitcoin advice against the market crashes of 2018, 2020, 2022, and the most recent 2025 pullback. The results? A portfolio with that 15% mix had a Sharpe ratio—that’s a fancy term for how much return you get for the risk you take—nearly three times higher than a traditional 60/40 stock and bond portfolio.
Gold: The Unbreakable Foundation
Dalio loves gold. Like, really loves it. He recently noted that gold has surpassed the Euro to become the world's second-largest reserve currency.
To him, gold is the ultimate "hard currency." It’s not someone else’s liability. If a bank fails or a government collapses, the gold in your hand is still gold. It doesn't require a login, an internet connection, or a central bank’s permission to exist.
In mid-2025, his former firm, Bridgewater, was reported to have over $300 million in SPDR Gold Shares. He’s putting his money—or at least the firm’s money—where his mouth is. With gold prices pushing toward $5,000 an ounce in some 2026 forecasts, that "ancient" metal is looking pretty modern.
The Bitcoin Problem: Why He’s Still Cautious
You might think Dalio is a total "crypto bro" now. He isn't.
He holds "a small amount" of Bitcoin, but he's very clear that he "strongly prefers gold."
His skepticism comes down to three things:
- Traceability: Governments can see what you’re doing on the blockchain. Gold is private; Bitcoin is a public ledger.
- Central Bank Adoption: He doesn't think central banks will ever hold Bitcoin as a reserve asset. They want control.
- The "Kill Switch": He’s worried about what happens if governments decide to outlaw it or if the code gets "broken" by quantum computing—a fear that recently led other big investors to trim their crypto holdings.
Despite these worries, he respects Bitcoin's 21-million-coin supply limit. In a world where the government can print trillions of dollars at the push of a button, something that can't be printed is naturally attractive.
The Bitwise "Both" Strategy
Interestingly, the data suggests Dalio’s "gold over Bitcoin" preference might be missing a trick. While gold is a great "cushion" during a crash, Bitcoin is the "engine" during the recovery.
In the 2020 COVID crash, gold only fell about 3%, while Bitcoin tumbled 38%. But in the year that followed, Bitcoin skyrocketed over 700%. Gold did well, but it didn't do that well.
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Basically, gold protects your downside, and Bitcoin captures the upside. Using both together gives you the best of both worlds. It’s like having a shield and a sword.
How to Actually Use the Ray Dalio Gold Bitcoin Advice
So, how do you apply this without losing your mind—or your shirt?
First, look at your current "safe" assets. If you’re heavy on U.S. Treasurys, Dalio would tell you to be careful. He’s been moving out of Treasurys because he thinks the risk of "printing-press inflation" makes them a bad deal.
The 15% rule doesn't mean you have to buy physical gold bars and bury them in the backyard (though you can).
Practical Next Steps for Your Portfolio:
- Audit your "Hard Assets": Check how much of your net worth is in assets that the government can't devalue. If it's less than 10%, you're below the Dalio threshold.
- The 75/25 Split: Many investors following this advice don't split the 15% equally. A common "Dalio-style" approach is putting 10-12% in gold (ETFs like GLD or physical) and 3-5% in Bitcoin. This limits the "heart attack" volatility of crypto while still giving you exposure.
- Rebalance Quarterly: Bitcoin moves fast. If your 5% allocation turns into 15% because the price doubled, sell some and buy more gold. Keep the weights consistent.
- Think Like a Central Bank: Central banks are buying gold at record rates right now. They aren't doing it to get rich; they're doing it to survive. Treat your 15% allocation as "survival insurance," not a get-rich-quick scheme.
The world of 2026 is messy. Between debt cycles, geopolitical tension, and the rise of AI, the old rules of "just buy an index fund and relax" are being tested. Whether you're a Bitcoin maximalist or a gold bug, the message from one of history's greatest hedge fund managers is clear: diversify into things that have real, limited supply.
Stop thinking about gold and Bitcoin as enemies. They’re teammates in a very difficult game.
Start by calculating your current percentage of "alternative" currency today. If you're sitting at 0%, even moving to 2% or 3% is a step toward the resilience Dalio is talking about.