Ray Dalio, founder of Bridgewater Associates, has highlighted the US dollar debt crisis as a key factor driving up the prices of gold and cryptocurrencies. In a recent article, Dalio argued that while relaxing cryptocurrency regulations won't threaten the US dollar's reserve status, the debt challenges faced by governments issuing the dollar and other reserve currencies are diminishing their appeal as wealth stores. This situation, he suggests, is contributing to the rising value of gold and cryptocurrencies.
Dalio also noted that stablecoins, if well-regulated, do not pose a systemic risk to US Treasury bonds. He emphasized that the real concern lies in the declining purchasing power of these bonds. As cryptocurrencies are supply-constrained, they may become more attractive if the US dollar supply increases or its demand decreases. Dalio warned that fiat currencies, particularly those burdened with large debts, are likely to depreciate against hard currencies.
Ray Dalio: US Dollar Debt Crisis Boosts Gold and Crypto Prices
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