Billionaire Ray Dalio, founder of Bridgewater Associates, expressed concerns about the future of the US economy related to rising debt, which may lead to increases in gold and cryptocurrency prices.
Economic Risks from Debt
According to Dalio, the US economy risks facing a 'debt-induced heart attack' in the coming years. He noted that annual interest payments have reached $1 trillion and are continuing to rise. Approximately $9 trillion in debt needs to be rolled over.
Expected Consequences for Cryptocurrencies
Dalio emphasized that under rising debt obligations, investors may turn to cryptocurrencies and gold as safe assets. He anticipates that digital assets like Bitcoin will appreciate as the dollar’s reserve currency status weakens.
Pressure on the Dollar and Alternative Currencies
Dalio warned about potential repercussions for the dollar, indicating that bad debts of countries using the dollar and other reserve currencies threaten their appeal. He added that crypto is now an alternative currency with limited supply and could become an attractive option for investors.
Ray Dalio's conclusions highlight the importance of the end of the 'great debt cycle' and the implications this could have for financial markets and the status of the dollar, opening opportunities for price increases in gold and cryptocurrencies.
