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Ray Dalio Warns Dollar’s Weakness Could Bolster Crypto and Gold

Ray Dalio Warns Dollar’s Weakness Could Bolster Crypto and Gold

DeFi PlanetDeFi Planet2025/09/03 14:45
By:DeFi Planet

Contents

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  • Quick Breakdown:
  • Debt Burden Threatens Monetary Order
  • Crypto Emerges as Alternative Store of Wealth

Quick Breakdown:

  • Ray Dalio warns that rising U.S. debt and the risks of Fed intervention could threaten dollar stability.
  • Crypto and gold may gain as alternative stores of value amid fiscal pressures.
  • Dalio highlights systemic risks from debt, geopolitics, and interventionist policies.

Ray Dalio, founder of Bridgewater Associates, has cautioned that mounting U.S. debt and political interference in monetary policy are accelerating a breakdown in the dollar’s credibility, creating a stronger appeal for alternative assets such as gold and cryptocurrencies.

Dalio made the remarks after criticizing the Financial Times for what he described as “mischaracterizations” of his written interview responses. In a direct release of his answers, Dalio highlighted debt, inflation, and the Federal Reserve’s weakening independence as central risks to the global financial order.

— Ray Dalio (@RayDalio) September 2, 2025

Debt Burden Threatens Monetary Order

According to Dalio, the U.S. faces a looming “debt-induced economic heart attack” within the next three years. He pointed to ballooning interest costs—now around $1 trillion annually—and the federal government’s need to refinance $9 trillion in debt while issuing trillions more to cover deficits.

He warned that this supply-demand imbalance in Treasuries could leave the Federal Reserve with two unpalatable options: allow rates to rise and risk defaults, or monetize the debt by printing money, which would weaken the dollar. Both outcomes, Dalio stressed, erode confidence in the U.S. financial system and diminish the dollar’s role as the world’s primary store of value.

Crypto Emerges as Alternative Store of Wealth

While rejecting the notion that stablecoins pose systemic risks, Dalio said the larger threat is the declining purchasing power of U.S. debt instruments. He argued that fiat currencies tied to heavy debt burdens will continue to lose value relative to “hard currencies” such as gold and cryptocurrencies.

“Crypto is now an alternative currency with limited supply,”

Dalio noted, adding that as dollar issuance rises and investor demand falls, digital assets stand to benefit. He likened today’s environment to the 1930s and 1970s, when traditional monetary orders faltered and investors sought inflation-resistant alternatives.

Notably, on a recent CNBC Master Investor podcast with Wilfred Frost, Dalio reaffirmed his support for Bitcoin, recommending a 15% allocation to either Bitcoin or gold as a hedge against fiscal instability and weakening dollar purchasing power.

 

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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