Billionaire Ray Dalio Declares Crypto As Alternative Currency

Billionaire investor Ray Dalio has declared that cryptocurrency has evolved into a genuine alternative currency. His remarks stem from rising concerns about the US dollar and financial system amid increasing debt and inflation.

Dalio noted that with limited supply, cryptocurrency becomes more appealing as an alternative if the dollar's supply increases or its demand decreases.

Crypto and Gold as Alternatives

Dalio views crypto similarly to gold as a hedge against money printing and debt.
He increased his recommended portfolio allocation for Bitcoin and gold from 2% to 15%.
Dalio previously referred to Bitcoin as a significant innovation and now places it alongside hard assets that retain value during government fiscal struggles.

America’s Debt Strain

Dalio warns that US debt levels could lead to a “debt-induced heart attack” within three years.
Interest costs are nearing $1 trillion annually, highlighting unsustainable spending versus earnings.
He predicts the Federal Reserve will face tough choices between raising rates or printing more money, risking dollar depreciation.

Fed and Dollar Confidence

Political pressures on the Fed may deter investors from US bonds and the dollar.
Concerns over potential changes in Fed leadership may keep interest rates artificially low.
Foreign creditors are reducing US bond holdings and shifting towards gold, indicating a late-stage sign in the debt cycle.

Bridgewater Exit

Dalio is concluding his tenure at Bridgewater Associates, the firm he founded in 1975.
In August, he sold his remaining shares to Brunei's sovereign wealth fund.
Dalio expressed satisfaction in passing the company to the next generation.