Ray Dalio Declares Bitcoin the Safer Bet Over Bonds Amid Looming Debt Crisis

Summary:

Ray Dalio warns of a looming debt crisis in major economies.
Advocates for hard money like Bitcoin and gold over bonds.
Inflation remains high, eroding currency value.
Bitcoin recently reached new highs over $100,000 but is currently trading above $98,000.
Gold prices have surged, hitting $2,697 an ounce.
Dalio emphasizes the need to consider big forces like debt and geopolitics.

Billionaire hedge fund manager Ray Dalio warns of an impending debt crisis in major economies, advocating for hard money like Bitcoin and gold as safer investments.

Dalio's Warning

At the Abu Dhabi Finance Week, Dalio expressed his desire to "steer away" from bonds and debt, stating that the "unprecedented levels" of debt in the U.S. and China are unsustainable. He remarked, "It is impossible for these countries to be able to not have a debt crisis in the years ahead."

Inflation Concerns

Dalio highlighted that inflation remains high in several countries, eroding purchasing power. In 2022, the consumer price index peaked at 9.6% in the U.K. and 9.1% in the U.S..

Bitcoin's Performance

Despite Bitcoin reaching new all-time highs over $100,000, it currently trades just above $98,000, having gained 1% in the last day. The fixed supply of 21 million coins is a key feature that supports Bitcoin's value.

Gold's Record Highs

Gold has also seen record levels, rising 36% over the past year, hitting $2,697 an ounce. Dalio noted the increasing popularity of gold, which has reached new highs amid geopolitical instability.

Future Predictions

Enthusiasts believe Bitcoin could one day surpass gold's market cap, potentially leading to a Bitcoin value of $850,000. BitWise Asset Management forecasts this could happen by the end of the decade.

Big Forces at Play

Dalio emphasized the importance of looking at big forces shaping the world, including debt, domestic politics, geopolitics, and climate change.

Evolving Views on Bitcoin

His views on Bitcoin have shifted over the years. In previous statements, he expressed skepticism about Bitcoin's role as an effective store of value and warned that some governments might outlaw cryptocurrencies.

Dalio's insights reflect a growing recognition of Bitcoin's potential amidst global financial uncertainties, making it a topic of significant interest for investors.

Source: Decrypt