Hedge fund billionaire Ray Dalio says bitcoin will never seriously challenge gold

• Ray Dalio thinks investors should make sure they have enough gold in their portfolios.
• The hedge-fund billionaire previously recommended allocating 15% to either gold or bitcoin.
• But Dalio recently said he doesn't think bitcoin is a safe-haven trade or a rival to gold.

Ray Dalio said the gold versus bitcoin debate has a clear winner. To the billionaire investor and founder of Bridgewater Associates, there's no replacement for the precious metal.

Dalio joined the All In podcast on Tuesday, taking the opportunity to compare the two assets and reveal the key differences he sees between them and why investors should care.

Gold has rallied in the last year, while bitcoin has slumped. In Dalio's view, the two assets clearly should not be lumped together as safe havens.

"There is only one gold," Dalio said of the comparisons between the two assets.

He highlighted concerns about bitcoin, noting that he doesn't think central banks will ever want to buy or hold it, as they do with 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

"One should have between five and 15% of their portfolio in gold," he said. "It's a diversifier when shit hits the fan. Gold does well when other things don't."

Last month, he described gold as the "safest money," even after prices were still recovering from a historic sell-off.

"People should worry and companies should worry and countries should worry: do they have enough gold?"

If their allocation is less than 5% of their portfolio, the answer is likely no, he said.