Ray Dalio has taken a definitive stance in the gold versus bitcoin debate: the billionaire founder of Bridgewater Associates believes no asset can replace gold. During an appearance on the All-In Podcast on Tuesday, Dalio compared the two assets and explained why he views them as fundamentally distinct and why this distinction matters for investors.

Over the past year, the price of gold has seen significant gains, while bitcoin has declined. Dalio argues that the two do not belong to the same category of safe-haven assets. "There is only one gold in the world," he stated, alluding to the frequent comparisons made between bitcoin and gold.

Dalio's concerns about bitcoin are more fundamental: central banks will never purchase or hold bitcoin in the same way they do gold. In his view, bitcoin resembles a risk asset more than a hedge. When markets face pressure, investors tend to sell bitcoin and buy gold instead.

"Portfolios should have 5% to 15% allocated to gold," Dalio advised. "It acts as a cushion when things go wrong. Gold tends to perform well when other assets are performing poorly."

Just last month, he referred to gold as the "safest currency," even as its price was recovering from a historic plunge. He stated, "Individuals, companies, and nations should all ask themselves: Do we have enough gold?" If a portfolio's gold allocation is below 5%, the answer is likely no.