Dalio: Debt crisis makes crypto key dollar alternative
Bridgewater Associates founder Ray Dalio warned that the U.S. dollar is losing its status as a reliable reserve currency as government debt hits record levels.
He added that the country faces a potential "debt heart attack" as annual debt servicing already costs the budget more than $1 trillion, with trillions more in new bonds needed for refinancing.
Ray Dalio noted that as dollar supply rises and demand falls, capped-supply cryptocurrencies become an attractive alternative: “If the dollar loses value, crypto assets will be viewed as currencies with limited issuance,” he explained.
He stressed that both cryptocurrencies and gold now act as hard currencies—assets that preserve value when trust in fiat systems erodes.
Dalio also weighed in on stablecoins, saying they pose no systemic risk if properly backed and regulated. The greater threat, he argued, lies in the declining real purchasing power of U.S. bonds.
The investor pointed to historical parallels, noting similar dynamics in the 1930s and 1970s, when debt burdens undermined currency stability. Today, he said, the U.S. is once again nearing a point where the central bank must choose between rising defaults and massive money creation, which would accelerate dollar devaluation.
Meanwhile, gold hit a new all-time high above $3,600 per ounce, up 33% since the start of the year, while Bitcoin remains among the leading alternative assets.
He stressed that both cryptocurrencies and gold now act as hard currencies—assets that preserve value when trust in fiat systems erodes.
Dalio also weighed in on stablecoins, saying they pose no systemic risk if properly backed and regulated. The greater threat, he argued, lies in the declining real purchasing power of U.S. bonds.
The investor pointed to historical parallels, noting similar dynamics in the 1930s and 1970s, when debt burdens undermined currency stability. Today, he said, the U.S. is once again nearing a point where the central bank must choose between rising defaults and massive money creation, which would accelerate dollar devaluation.
Meanwhile, gold hit a new all-time high above $3,600 per ounce, up 33% since the start of the year, while Bitcoin remains among the leading alternative assets.
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