It’s time for society to think about alternatives to money
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DAVOS, Switzerland – Billionaire investor Ray Dalio believes the U.S.'s debt-bloated position could eventually devalue the U.S. dollar (DX=F) as a store of value.
Therefore, it is time to consider wider acceptance of alternative currencies such as cryptocurrencies.
“We had a situation where we had too much debt and we were generating debt at a rapid rate. So, yes, we Alternative payments must be considered” in Davos, Switzerland (video above; listen below).
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Dalio from the hybrid side, other assets are reality.”
The price of Bitcoin has increased by 165% over the past year, climbing by $100,000 per coin after Donald Trump won his re-election in November. The new government is widely believed to be more friendly to the cryptocurrency world. Trump and his wife Melania Trump even released their own meme coins.
Dalio resigned as CEO of Bridgewater Associates in 2017 and handed over control of the company in October 2022. His current role with the company includes directing committees that provide oversight of the company's investment strategy.
The investing veteran, who has an estimated net worth of $14 billion, is no stranger to calls that hit the grain market and the economy. Some people put out; others haven't – a bit.
In an April 2022 interview, Dalio warned me of a period of stagnation or slow growth and high inflation. From a growth perspective, this isn't exactly petering out as the world recovers from the COVID-19 pandemic. However, global economies continue to grapple with increasing levels of inflation that are taking a toll on consumer purchasing power.
Lately, Dalio has been focusing on the country's burdensome deficit, which will hit a staggering $1.8 trillion in fiscal year 2024. He shares more of his debt woes in a new online book called “How Nations Go Bankrupt.”
The worst-case scenario (such as a major burst of inflation) has yet to happen to the U.S. debt. But markets are not ignoring the issue, and the Trump administration may increase debt levels by expanding its signature tax cuts.
Dalio believes that the 10-year fiscal yield now hovering near 5% is just the beginning of an uptick that could weigh on stocks and support a larger spin into areas like cryptocurrencies.