Ray Daliofounder of the world’s largest hedge fund Bridgewater Associates, said that given the rising global debt burden, he prefers investing in “hard money” such as bitcoin and gold over debt.
In a speech at the Abu Dhabi Finance Week conference, the veteran investor referred to “unprecedented levels” of debt in all major countries, including the United States and China, and stressed that current levels are unsustainable.
“It is impossible for these countries not to have a debt crisis in the coming years that will lead to a major decline in the (money) value,” Dalio said.
He continued that he wants to “stay away from debt like bonds and debt, and have some hard money like gold and bitcoin.” Dalio sees bitcoin and gold as stable hedges against economic uncertainty.
The billionaire investor wasn’t always so keen on bitcoin. Previously, Dalio believed that crypto would not succeed as hoped. But he has become a leading advocate of Bitcoin in recent years.
In 2022, Dalio said Allocating up to 2% of a portfolio to bitcoin, in addition to gold, is reasonable to hedge against inflation.
Dalio’s approach further legitimizes Bitcoin as a hedge against flawed monetary policy. As countries continue to debase fiat currencies, bitcoin’s steady supply makes it a safe haven.