Ray Dalio Backs Gold and Bitcoin as US Debt Hits $36.7 Trillion

Speaking on the Master Investor podcast on July 27, Dalio explained that this mix of gold and Bitcoin offers a helpful way to protect against the falling value of money. He mentioned that he owns a small amount of Bitcoin himself, but still favors gold.

He also noted that the split between the two assets should depend on each person’s preference.

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The US national debt has reached $36.7 trillion. Dalio warned that the government may need to issue around $12 trillion in new Treasury bonds next year just to keep up with its current payments.

According to him, this cycle, where more debt leads to even more borrowing, is damaging the strength of the US dollar.

Dalio described gold and Bitcoin as useful tools for reducing the risks tied to this kind of economic situation. Since they are not linked to any government and cannot be easily created, they may hold their value better than national currencies over time.

However, Dalio remains unsure whether Bitcoin could serve as a global reserve currency. He pointed out that the system behind Bitcoin is public, and transactions can be tracked. This lack of privacy, along with the chance that technical problems could appear in the code, makes him doubt whether central banks would ever adopt it.

On July 24, Chris Kuiper, head of research at Fidelity Digital Assets, shared data on the amount of Bitcoin each public company holds. What did he say? Read the full story.