Ray Dalio, whose comments come only days after those of Thomas Peterffy, has said the best amount to invest out of your portfolio into crypto is around 1%-2%.
Billionaires have been rushing to pitch a golden investment formula insofar as crypto goes – or in the very least how much one should invest in crypto.
Speaking to The Investors Podcast, he said that Bitcoin (BTC) is probably the best currency to put your money in if you are seeking to diversify.
“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”, he said.
Citing this sum, he argued that inflation hedges such as BTC are likely to do better over time. Of course, Dalio is also a founder of Bridgewater Associates, the largest hedge fund in the world, so it’s his job to factor in alternative investments for his clients.
Dalio did show a deeper understanding of the currency, as he argued that the cult-like following the asset could be its downfall. For example, Antoni Trenchev from Nexo believes that BTC may hit $100,000 in 2022. Then again, it may plunge to $10,000.
Dalio also posed a good question to the general public, asking when one would know that they had enough of “diversifying into Bitcoin”. He answered that there would be other vessels that would make good investment opportunities within crypto space.
If you are not too sure if Bitcoin is a good hedge against inflation, you can still use it to play at 1xBit, FortuneJack or Bitcasino.