Billionaire investor Ray Dalio said the U.S. is nearing the late stages of a debt cycle that threatens the dollar’s role as the world’s reserve currency, a shift that he believes could boost demand for Bitcoin, gold, and other limited-supply assets.

Dalio, founder of Bridgewater Associates, released the comments after accusing the Financial Times of misrepresenting his views shared in an interview.

He said he agreed to respond to the paper’s questions in writing, but when the exchange was not published, he made the full Q&A public to “counter distortions.”

Fiat currencies destined to fall

Dalio argued that the U.S. government’s soaring debt service costs, now about $1 trillion annually, combined with fresh borrowing needs, are eroding confidence in Treasuries and the dollar.

He added that this dynamic makes alternative assets more appealing.

According to Dalio:

“Crypto is now an alternative currency that has its supply limited, so, all things being equal, if the supply of dollar money rises and/or the demand for it falls, that would likely make crypto an attractive alternative currency.”

He also shared his belief that all fiat currencies are destined to fall in value against “hard currencies” like Bitcoin.

Dalio said:

“This is what happened in the 1930 to 1940 period and the 1970 to 1980 period.”

He made the statement in response to a question about whether crypto could viably replace the dollar. He also responded to questions regarding stablecoins and their exposure to treasuries.

Go to Source to See Full Article
Author: Assad Jafri