Billionaire Ray Dario repeats warnings of a decline in the dollar, suggesting Bitcoin as a hedge

Billionaire investor Ray Dalio said the US is approaching a late stage in the debt cycle that threatens the role of the dollar as a global reserve currency.

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

He agreed to answer the questions in the paper in writing, but when the exchange was not published, he made the full Q&A “opposed to distortion.”

Fiat currency destined to fall

Dario argued that the US government’s rising debt service costs of around $1 trillion per year, combined with new borrowing needs, undermined confidence in the Treasury and the dollar.

He added that the dynamic makes alternative assets more attractive.

According to Dario:

“Crypto is currently an alternative currency with limited supply, so when the supply of dollar money rises or demand drops, everything becomes equal.

He also shared his belief that all Fiat currencies are destined to be devalued against “hard currencies” like Bitcoin.

Dario said:

“This was what happened between 1930-1940 and 1970-1980.”

He issued a statement in response to questions about whether Crypto could pass the dollar. He also answered questions about stablecoins and financial exposure.

FT questioned whether dynamics could pose a systematic threat to stability. Dario replied, “I don’t think so.” He added that, in his view, the decline in the Treasury’s purchasing power is a greater systematic threat.

Dalio has previously proposed that investors allocate up to 15% of their portfolio to alternatives such as gold and Bitcoin to protect them from financial decline.

Danger Booking Status

Dario said the Federal Reserve is facing a dilemma between raising interest rates, jeopardizing the risks of default and market disruption, or printing money to cover obligations to undermine the value of the dollar.

He warned that foreign holders are already beginning to reduce exposure to US bonds and turn to gold, a classic sign of late cycle stress.

The political threat of giving independence could accelerate the erosion of trust and push investors into even scarce and diversified assets, he added.

Dario put these pressures in the context of what he calls the “big cycle”: a recurring set of military forces, including debt, political conflict, geopolitical conflict, climate risk and technical disruption.

He said their convergence could create “huge and unimaginable changes over the next five years.”

By publishing the Q&A, Dalio said he sought to provide a clear, nonpartisan analysis of how US policy decisions are reshaping global finance. For Bitcoin, his warning suggests that confidence in the dollar could be strengthened.

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