Ray Dalio warns that US debt threatens the dollar and strengthens cryptocurrencies

• Rising US debt reduces confidence in the dollar
• Investors flock to gold and cryptocurrencies
• Stablecoins do not pose immediate systemic risk

Ray Dalio, founder of Bridgewater Associates, once again highlighted the risks associated with rising U.S. government debt, pointing out that this factor threatens the dollar's role as the primary global reserve currency. For the investor, excessive fiscal spending is eroding confidence in fiat money and driving investors toward alternative assets such as gold and cryptocurrencies.

In recent statements, Dalio emphasized that the combination of high debt, political instability, geopolitical tensions, climate change, and the effects of artificial intelligence is expected to generate significant turbulence over the next five years. "Government defaults on the dollar and other reserve currencies are threatening their appeal as reserve currencies and stores of wealth, which has contributed to rising gold and cryptocurrency prices," he stated.

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— Ray Dalio (@RayDalio) September 2, 2025

The billionaire added that Bitcoin has already established itself as a viable alternative. "Cryptocurrency is now an alternative currency with limited supply," Dalio said, noting that investors seeking protection tend to increasingly diversify into "hard currencies" such as gold and Bitcoin. He had already recommended in 2024 that balanced portfolios allocate 15% to these assets, revealing that he owns a small amount of BTC.

When comparing historical moments, Dalio referenced the 1930s-40s and 1970s-80s, periods in which a loss of confidence in the dollar also fueled the search for alternative assets. According to him, the same logic applies to the current cycle of debt and inflation.

Regarding stablecoins, Dalio downplayed concerns about the systemic risk arising from these digital currencies' heavy exposure to U.S. Treasuries. "This shouldn't create any systemic risk for stablecoins if they're well-regulated," he noted. However, he warned that the dependence on Treasury securities links their stability to the U.S. fiscal health.

For Dalio, what's at stake is not only debt sustainability, but also the dollar's credibility against alternatives that offer planned scarcity and greater value preservation. This move, he says, reinforces the position of gold and Bitcoin as strategic reserves in times of uncertainty.