Highlighting unsustainable debt levels in major economies, including the United States and China, Ray Daliothe founder of Bridgewater Associates, emphasized the need to shift investments towards hard assets like Bitcoin
btc
$97,326.00
and gold.
dalio identified debt as one of the five major forces shaping the global economyalong with the money supply, economic conditions, the internal political order and the external geopolitical dynamics.
He urged investors to focus on these larger forces rather than react to the “twists and turns” of daily news.
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In 2022, Dalio suggested allocating up to 2% of a portfolio to bitcoin along with gold to protect against inflationalthough he has also highlighted the importance of not depending on a single asset class.
Speaking at a financial event in Abu Dhabi, Dalio addressed the trajectory of global debt. He pointed out that The scale of debt among major economies has reached “unprecedented levels.” and warned of the possible consequences.
He explained: “It is impossible for these countries not to have a debt crisis in the coming years which will lead to a huge drop in the value of money.”
To counter the risks associated with debt-based assets like bonds, Dalio recommended hard money alternatives. He stated:
I want to move away from debt assets like bonds and debt and have some hard money like gold and Bitcoin.
While investors like Ray Dalio turn to Bitcoin for stability, others remain skeptical about its role in the global economy. Recently, Peter Schiff, a long-time cryptocurrency critic, urged Joe Biden to eliminate the US government’s holdings of Bitcoin. Why is Schiff so determined to get rid of Bitcoin? Read the full story.
Having completed a master’s degree in Economics, Politics and Cultures of the East Asian region, Aaron has written scientific articles analyzing the differences between Western and collective forms of capitalism in the post-World War II era.
With almost a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that cryptocurrency enthusiasts face. He is a passionate analyst who cares about data- and fact-based content, as well as that which speaks to both Web3 natives and newcomers to the industry.
Aaron is the go-to person for all things digital currencies. With a strong passion for blockchain and Web3 education, Aaron strives to transform the space as we know it and make it more accessible to beginners.
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