Bridgewater's Dalio: I will "invest in Bitcoin and gold" away from bonds in response to the risk of significant currency depreciation

Ray Dalio, founder of Bridgewater Associates, stated at a financial conference that he will invest in 'hard currencies' such as gold and BTC to avoid potential debt crises and significant currency depreciation in the future. He warned that major economies including the United States and China have reached unsustainable levels of debt. According to the latest data from the U.S. Treasury Department, the total U.S. debt has exceeded $36.1 trillion, reaching an unprecedented scale and continuing to rise rapidly. How this will affect the U.S. economy in the future has been a concern for global economists. Ray Dalio: I will invest in BTC, gold, and other hard currencies. In response, Ray Dalio, the founder of Bridgewater Associates, the world's largest hedging fund, stated at a financial conference in Abu Dhabi on Tuesday that he will invest in 'hard currencies' such as gold and BTC while avoiding debt assets, as most major economies are facing increasingly severe debt problems. 'I think there may be a problem with debt currencies, so I want to stay away from debt assets like bonds and debt, and hold some hard currencies like gold and BTC.' Hard currencies generally refer to currencies backed by physical commodities such as gold or silver, with characteristics such as scarcity of supply, stable value, and resistance to inflation. They are often seen as long-term store of value tools and provide hedging functions during economic instability. This is in contrast to fiat currencies such as the U.S. dollar and euro, whose supply is adjusted by Central Bank policies and is susceptible to inflation. BTC has a maximum supply limited to 21 million and its production is halved every four years, conforming to the scarcity characteristic of hard currencies. Although there is controversy regarding its stability and resistance to inflation, Dalio now regards BTC as a type of hard currency, which undoubtedly is a great praise and affirmation for BTC. Major currencies will experience significant depreciation. Dalio pointed out that the debt levels of Germany, the United States, China, and all major countries have reached unprecedented heights, making such debt levels unsustainable. He warned, 'In the next few years, these countries will inevitably face debt crises, leading to significant depreciation of their currencies.' Dalio added that 'debt, currency, and economy' are among the five major forces that he believes determine the global landscape. Other forces include domestic political order (driven by wealth distribution inequality and value differences) and external geopolitical patterns (such as power conflicts resulting from tensions in U.S.-China relations). Ray Dalio changes his previous stance. However, Dalio is not actually a loyal supporter of BTC. He stated in December last year that BTC cannot become an 'effective currency' because of its high volatility and the fact that Central Banks will not adopt it. He stated at the time, 'BTC is neither an effective store of wealth nor a medium of exchange, therefore, it is not an effective currency. Its fluctuation has almost no correlation with anything, and it is a very, very bad substitute for gold.' Dalio also added, 'Governments can crack down on BTC, they can control it, anyway, Central Banks and countries around the world do not want it. The attention it receives far exceeds its proportion compared to its scale.' Dalio pointed out that gold is the third-largest forex reserve held by Central Banks around the world, second only to the U.S. dollar and euro, which further supports his viewpoint. Although Ray Dalio previously praised BTC as a 'remarkable invention,' at that time, he expressed his hope for the creation of a currency 'linked to inflation' to ensure consumer purchasing power. However, BTC's position has changed significantly. With BTC's price surpassing the $100,000 milestone, its market capitalization ranking seventh globally, and with the promise made by the U.S. during the Trump campaign to establish a strategic reserve of BTC, the Russian Parliament has recently proposed including BTC in strategic reserve assets. The success of MicroStrategy has prompted companies to establish BTC reserves, and the launch of BTC Spot ETF has also achieved tremendous success, with total assets under management reaching $107.7 billion. The adoption rate among institutions and traditional investors is rapidly increasing, and there is a growing consensus on BTC globally. This series of significant developments has caused Ray Dalio to change his attitude towards BTC, from criticizing it as a highly volatile asset to recognizing it as a hard currency.