Billionaire Ray Dalio supports Bitcoin and Gold over debt assets

Ray Dalio pointed out the increasing risks of global borrowing and called on investors to turn to “hard money” assets such as gold and Bitcoin instead of traditional debt instruments.

Speaking at a financial conference in Abu Dhabi, Dalio expressed concern about rising debts in the United States, China and other major economies, calling the trend “unsustainable.”

Debt assets, such as bonds, are financial instruments issued by governments or companies to raise funds. Dalio’s warning stems from his belief that rising debt levels could lead to significant financial difficulties, including possible devaluation of the currency, according to the South China Morning Post.

In the past, Dalio has suggested switching to inflation-linked currencies to address financial instability. In an interview with CNBC in 2023, he criticized fiat, Bitcoin (BTC), and stablecoins for their failure to stabilize economies, citing fiat overprinting and Bitcoin’s volatility. Dalio proposed the idea of ​​”inflation-linked money” to help preserve purchasing power.

Hard currency

According to Dalio, “full money” refers to assets like gold and Bitcoin that, unlike debt assets, are not tied to any central authority and are often seen as hedges against economic uncertainty.

“I want to stay away from debt assets such as bonds and debt and own hard currencies such as gold and Bitcoin.” said Dalio.

According to the South China Morning Post, Dalio also identified five key forces shaping the global economy: debt and currency dynamics, internal political divisions, geopolitical tensions, natural disasters and technological innovations.

He emphasized the importance of strategic thinking and diversification in dealing with these challenges and urged investors to focus on long-term trends rather than short-term market fluctuations.