Ray Dalio Says Invest in BTC and Gold, Not Debt Assets: Report

Ray Dalio, an American investor and founder of the world’s largest hedge fund, Bridgewater Associates, says he is investing in bitcoin (BTC) and gold instead of debt assets. The billionaire, who now serves as the chief investment officer of Bridgewater Associates, is more interested in the precious metal and cryptocurrency because they are “hard money.”

On the other hand, debt assets such as bonds should be avoided because major economies will face debt crises in the coming years, which will lead to a decline in their value.

BTC and gold over debt assets

According to a report by the South China Morning Post, Dalio dropped his remarks on BTC and gold during a speech on December 10 at the Abu Dhabi Financial Week (ADFW).

He claimed that all major economies, including the United States, China and, with the exception of Germany, are seeing their debt levels rise to unprecedented levels. Unfortunately, these levels are unsustainable and there could be a debt money problem in the future.

“I think there would probably be a pending debt money issue. I want to get away from debt assets like bonds and debt and have hard money like gold and bitcoin,” Dalio said.

The billionaire further explained that debt, money, the economy, acts of nature and the invention of new technologies are the forces that drive the entire world. Other factors, such as countries’ external political and geopolitical orders, could contribute significantly. Judging by Dalio’s preference for BTC and gold, he believes these assets are best for preserving wealth as the world reacts to these forces.

“Don’t get too caught up in the twists and turns of the day-to-day headlines and instead think more about the big forces. Think strategically as well as tactically, taking a global perspective while recognizing that what you don’t know about the future is greater than what you do know,” added the Bridgewater founder.

BTC Exceeds Dalio’s Expectations

Dalio used to be a critic of Bitcoin a few years ago. In 2020, he opined that the crypto asset is unlikely to perform as remarkably as people expected. At the time, Bitcoin was worth about $15,000.

Four years later, Dalio has become a Bitcoin advocate and now sees the cryptocurrency as a better option than debt assets, especially with BTC crossing $100,000 for the first time.

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