Key Notes
- Dalio said that crypto has become a genuine alternative to the dollar.
- He warned that the US faces a “debt-induced heart attack” within three years.
- Dailo recently exited Bridgewater Associates after nearly 50 years.
Billionaire investor Ray Dalio, founder of Bridgewater Associates, says cryptocurrency has become a true alternative currency.
His comments follow growing doubts about the dollar and the United States’ financial system as debt and inflation climb under the Donald Trump administration.
Ray Dalio said that Crypto is now an alternative currency that has its supply limited, so, all things being equal, if the supply of dollar money rises and/or the demand for it falls, that would likely make crypto an attractive alternative currency. Dollar and the other reserve…
— Wu Blockchain (@WuBlockchain) September 3, 2025
Crypto and Gold as Alternatives
Dalio argued that crypto, like gold, is gaining traction as a hedge against money printing and debt.
“Crypto is now an alternative currency that has its supply limited,” he wrote, adding that if dollar supply keeps rising and demand weakens, crypto will look increasingly attractive as a store of wealth.
While still favoring gold, he has boosted his recommended portfolio allocation for Bitcoin BTC $111 108 24h volatility: 0.8% Market cap: $2.21 T Vol. 24h: $48.40 B and gold from 2% to as much as 15%. It is clear that BTC is generally favored by veteran investors as the best crypto to buy . Dalio once described Bitcoin as a “hell of an invention” and now places it alongside hard assets that can hold value when governments struggle to manage debt.
America’s Debt Strain
Beyond crypto, Dalio warned that US debt levels are pushing the economy toward what he called a “debt-induced heart attack” within the next three years. He compared the credit system to a clogged circulatory system, with interest costs now near $1 trillion annually.
With the government spending far more than it earns, he said the Fed will face a painful choice, i.e, let rates rise and risk defaults, or print money and weaken the dollar.
Fed and Dollar Confidence
Dalio also cautioned that political pressure on the Federal Reserve could drive investors away from US bonds and the dollar.
Trump’s threats to remove Fed Chair Jerome Powell , he said, add to concerns that rates may be kept artificially low for political reasons. Foreign creditors are already cutting US bond holdings and turning to gold, which Dalio sees as a classic late-stage sign in the debt cycle.
Bridgewater Exit
Dalio’s warnings come as he closes his chapter at Bridgewater Associates, the hedge fund he founded in 1975.
In August, he sold his remaining shares in a multibillion-dollar deal to the sovereign wealth fund of Brunei, fully stepping away from the firm. He said he was “thrilled” to hand over Bridgewater to the next generation.
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