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Dalio, the founder of Bridgewater Associates, one of the largest hedge funds globally, has consistently alerted investors regarding the substantial growth of national debt. This week, the U.S. national debt surpassed the $40 trillion threshold.

In his advisory, Dalio recommended a diverse portfolio across asset classes and countries characterized by strong financial statements and stability, while advising against over-reliance on debt assets such as bonds. He emphasized a strategy of overweighting gold and maintaining a small allocation to Bitcoin.

He further noted that major economies, including the U.K., U.S., Europe, and Japan, face similar challenges related to debt and deficits, suggesting that assets like Bitcoin, which are not government-issued, may thrive as a result.

Dalio’s perspective on Bitcoin has evolved over time, transitioning from a stance of avoidance to the acknowledgment that it occupies a position in his investment portfolio.

Previously, Dalio disclosed that Bitcoin constituted a mere 1% of his holdings, reiterating this figure in recent discussions. He expressed concerns, however, regarding the potential detrimental impact of quantum computing on Bitcoin’s value, despite its finite supply.

Back in 2020, Dalio characterized Bitcoin as too volatile for everyday use as a currency but recognized its value for modest inclusion in investment strategies. In contrast, he advocated for gold as a fundamental holding for every investor.

In his latest essay, Dalio elaborated on the consequences of excessive borrowing by governments, noting that central banks often resort to printing money to bridge the gap between debt supply and demand, which ultimately leads to currency debasement.

Proponents of Bitcoin have long posited that it serves as a viable hedge against government-induced monetary inflation, akin to gold, and historical trends suggest that Bitcoin has previously benefited during periods of increased money supply by governments.



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bitcoin
Bitcoin (BTC) $77,334.00 0.10%
ethereum
Ethereum (ETH) $2,446.45 0.70%
tether
Tether (USDT) $0.999868 0.00%
xrp
XRP (XRP) $1.51 1.80%
bnb
BNB (BNB) $699.28 0.20%
usd-coin
USDC (USDC) $0.999921 0.00%
solana
Solana (SOL) $95.27 0.80%
tron
TRON (TRX) $0.343859 0.20%
hyperliquid
Hyperliquid (HYPE) $80.95 2.20%
figure-heloc
Figure Heloc (FIGR_HELOC) $1.00 2.40%