Home›Crypto›Market Structure›Ray Dalio argues bitcoin and gold could benefit from r…

Ray Dalio argues bitcoin and gold could benefit from rising debt

Dalio said U.S. national debt has topped $40 trillion and advised underweighting bonds while overweighting gold and a smaller allocation to bitcoin.

Reported · Written up by our desk · Market Structure

Ray Dalio, the Bridgewater Associates founder, said in a new essay that bitcoin and gold could perform relatively well as governments expand debt and central banks print money to cover funding gaps. Bitcoin Magazine reported that Dalio expects non-government-produced assets like gold and bitcoin to benefit when currency values are pressured by money debasement.

Dalio pointed to the scale of U.S. borrowing, noting that the national debt passed the $40 trillion mark this week. He also said major economies including the U.K., U.S., Europe, and Japan face similar debt and deficit challenges, which he believes could make assets not issued by governments, such as bitcoin, more attractive.

In the essay, Dalio reiterated his guidance on diversification across asset classes and countries. He recommended underweighting debt assets like bonds and overweighting gold and a bit of bitcoin, adding that bitcoin cannot be printed more, though it could be affected by advances like quantum computing.

Bitcoin Magazine also noted that Dalio has previously shifted his stance on bitcoin, moving from saying he would not invest in it to admitting it is in his portfolio. The outlet said Dalio has indicated bitcoin represented about 1% of his investments in recent years, and he previously described gold as something all investors should hold.

Latest closeGold $4,432.00 ▲1.6%|Bitcoin $78,068.37 ▲6.9%

More like this

Sources