Billionaire global investor Ray Dalio believes that the ballooning debt situation of the United States could undermine the value of the dollar as a means of storing wealth, and in statements Dalio believes that it is time to consider wider acceptance of “alternative currencies” such as cryptocurrencies.
Bitcoin Press Releases
“We are in a situation where we have a high level of debt and it is increasing rapidly. So we should be thinking about alternative currencies,” the founder of the world’s largest hedge fund, Bridgewater Associates, said at the World Economic Forum in Davos, Switzerland.
He added that this is not just the thinking of individuals, but also countries and central banks. “Changes in holding bonds and debt as assets, and buying gold and other assets for diversification are a reality.”
Bitcoin Prices
Bitcoin prices have surged 165% over the past year, topping $100,000 after Donald Trump won re-election in November. The new administration is expected to be more supportive of cryptocurrencies. Even Trump and his wife, Melania, have launched their own memes.
Dalio stepped down as CEO of Bridgewater Associates in 2017, handing over control of the company in October 2022. His current role includes overseeing the firm’s investment strategies.
Dalio, who is worth an estimated $14 billion, is no stranger to making outlandish economic and market predictions. Some have come true, while others have yet to come true — and may never come true.
Bitcoin Price News
In an interview in April 2022, Dalio warned of a “recession” Inflationary" is characterized by slow growth and high inflation. While this has not materialized in terms of growth as the world recovers from the COVID-19 pandemic, global economies are still struggling with high levels of inflation that are affecting consumers' purchasing power.
More recently, Dalio expressed concern about the large US budget deficit, which reached $1.8 trillion in fiscal year 2024.
Best Cryptocurrencies
While the worst-case scenarios for US debt - such as a major inflation outbreak - have not happened, markets have not ignored the issue. The Trump administration is likely to add to the debt levels by extending the tax cuts.
Dalio believes that the yield on the 10-year Treasury note, currently nearing 5%, is just beginning to rise, which could impact stocks and support a greater trend towards other assets such as cryptocurrencies. "Probably the biggest threat, or at least one of the biggest threats, is the supply and demand for bonds, especially Treasuries," he said.
Bitcoin Prices Today
n