Dalio Bets on Bitcoin as US Debt Heads for $60 Trillion
Ray Dalio, founder of Bridgewater Associates, believes that Bitcoin's scarcity and store-of-value characteristics will serve it well in an economic environment where government debt is expected to spiral to $60 trillion.
Dalio's support for Bitcoin is tempered by his preference for gold as a monetary asset. However, he acknowledges the potential benefits of Bitcoin's fixed supply and resistance to monetary debasement.
The Congressional Budget Office projects a $1.9 trillion fiscal 2026 deficit, with federal outlays of $7.4 trillion and revenue of $5.6 trillion. The total public debt outstanding has reached $40.05 trillion, surpassing $40 trillion for the first time.
Dalio warns that a full debt crisis could arrive in three years if the country's fiscal course does not change. He advises diversifying assets and underweighting debt assets like bonds, while overweighting gold and a small portion of Bitcoin.