Ray Dalio says bitcoin isn't a substitute for gold

Hedge-fund founder Ray Dalio said bitcoin will never seriously challenge gold, arguing there is no replacement for the precious metal. "There is only one gold," Dalio said when comparing the two assets. He previously recommended allocating 15% to either gold or bitcoin, but recently stressed that bitcoin is not a safe-haven trade or a rival to gold.

Gold has rallied while bitcoin has slumped, and Dalio highlighted why central banks are unlikely to hold bitcoin the way they hold gold. "Bitcoin trades like a risk asset, not a hedge, and when investors are under pressure, they will likely move to sell it and double down on gold," he added.

On portfolio allocations, Dalio advised that "one should have between five and 15% of their portfolio in gold. It's a diversifier when shit hits the fan.

ray dalio, bitcoin, gold, safe haven, central banks, risk asset, portfolio allocation, diversifier, hedge fund, sell bitcoin