Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, has urged investors to consider “hard money” assets like Bitcoin and gold amid growing economic uncertainty.
Speaking at Abu Dhabi Finance Week (ADFW) in the United Arab Emirates, Dalio expressed concerns about rising debt levels in major economies and advised against relying on traditional debt-based investments.
“I believe that there would likely be a pending debt money problem,” Dalio stated. “I want to steer away from debt assets like bonds and debt, and have some hard money like gold and Bitcoin.”
Bitcoin, which recently surpassed $100,000, has drawn attention as a hedge against inflation and economic instability.
Dalio highlighted the historically high levels of indebtedness in major economies, including the U.S. and China, while noting that Germany is an exception. He warned this trend could lead to future debt crises and a devaluation of fiat currencies.
“It is impossible for these countries to be able to not have a debt crisis in the years ahead that will lead to a great decline of [money] value,” he said.
Dalio also discussed a broader framework of global trends he refers to as “five big forces,” including economic factors like debt, internal political divides, geopolitical tensions, natural disruptions such as climate change, and technological advancements.
He emphasized the importance of a diversified strategy to address these challenges effectively.
Dalio’s comments contribute to ongoing discussions about the role of Bitcoin and gold as part of a resilient investment strategy, especially during periods of economic uncertainty.