Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.
With the U.S. debt rising and the dollar losing value, billionaire investor Ray Dalio, who started Bridgewater Associates, has pointed out that cryptocurrencies are becoming a more appealing alternative asset.
Dalio wrote a post on X on September 3, 2025, to clear up any misunderstandings about his interview with the Financial Times. He stressed the increasing hazards of U.S. fiscal policy and the growing importance of cryptocurrency in a volatile economy.
Cryptocurrencies like Bitcoin are becoming good ways to protect yourself against inflation and currency depreciation since they have a limited supply and are not tied to fiat money systems. This essay looks at Dalio’s warnings about the U.S. debt crisis, the dollar’s losing power, and the growing importance of crypto as a strategic investment.
The U.S. debt crisis is like a ticking time bomb
Ray Dalio has said several times that the U.S. economy is at a very important point because of its high levels of debt. He compared the country’s debt to a “clog in the bloodstream” in his X post.
The government has to pay $1 trillion in interest each year and refinance $9 trillion in commitments. “The worsening condition is the result of years of excess. “Today’s problems are the result of all of these things happening at once,” Dalio said. “Budget overruns have caused a heart attack due to debt.”
This bad prediction is in line with what other market analysts have said. According to a research from JPMorgan, the U.S. Dollar Index (DXY) dropped 10.7% in the first half of 2025, which was its worst performance for that time period in more than 50 years.
The dollar is going down because the economy is growing more slowly, the deficits are getting bigger, and the policies are unclear. This is similar to what happened from 2002 to 2008. Dalio said that the U.S. is moving toward the end of a “big debt cycle” because central banks are borrowing too much and printing too much money to pay off their debts. This phase has traditionally been linked to currency devaluation and economic disruption.
The effects of this cycle are already seen in traditional markets. Gold, which has traditionally been seen as a safe-haven asset, reached an all-time high in late August 2025. This was because investors were leaving fiat currencies. Dalio thinks cryptocurrencies are similar to gold in that they are scarce and are becoming more popular as a way to store value.
Using cryptocurrency as a hedge against fiat weakness
Dalio likes cryptocurrencies because they have a restricted supply, which is very different from fiat currencies that can be expanded by central banks. “Crypto is now a different kind of money that isn’t very common. He said, “If the supply of dollar money goes up and the demand goes down, crypto could become a good choice.”
This point of view looks back to the 1930s and 1940s and the 1970s and 1980s, when too much debt and bad monetary policy made fiat currencies less valuable. In ancient times, people put their money into tangible assets like gold to protect it. Dalio says that cryptocurrencies, like Bitcoin, which has a limited quantity of 21 million coins, are doing something similar today. He suggested that 15% of a portfolio be put into either gold or Bitcoin in July 2025 to protect against economic upheaval. This confirmed that he owns Bitcoin.
Dalio, on the other hand, warns that cryptocurrencies come with risks. Their worth is still affected by changes in the global economy, new regulations, and problems with technology. Investors need to think carefully about these things before getting into digital assets, weighing the possible returns against the risks of volatility.
What Makes Crypto So Attractive on a Large Scale
Dalio says that the global economy will be shaped by five main drivers over the next five years: debt cycles, political polarization, geopolitical tensions, climatic concerns, and new technologies that will change the way we live and work, like artificial intelligence (AI). He says that these things are coming together to make a “big cycle” of chaos that makes traditional financial systems even more uncertain.
- Debt and Inflation: The U.S. has a $1 trillion yearly interest burden and $9 trillion in refinancing demands, which makes it hard to keep the economy stable. This could force the Federal Reserve to print more money, which would make the dollar weaker.
- Political and Geopolitical Risks: More nationalism in the economy and competition between the U.S. and China in technology might hurt global trade and make investors turn to decentralized assets like crypto.
- Technological Disruption: AI and blockchain are changing the way markets work, and crypto is doing well because it is decentralized.
- Climate Challenges: The costs to the environment may cause the government to spend less, which would make deficits and currency pressures worse.
- Changes in Monetary Policy: The Fed’s position has made the dollar weaker, which has increased demand for other assets.
In this situation, cryptocurrencies have a unique value proposition: they are not affected by centralized monetary policy and are resistant to inflation. Their set or predictable supply schedules make them appealing to investors who want to diversify their portfolios as fiat currencies lose value.
Systemic Risks and Stablecoins
He also talked about stablecoins, like Tether (USDT), which are tied to things like the U.S. dollar. He downplayed worries about their exposure to U.S. Treasuries by saying, “Well-regulated stablecoins shouldn’t pose systemic risks, though they are tied to the broader health of U.S. fiscal policy.”
This stance is different from the worry that if the U.S. debt markets fail, stablecoins’ reliance on Treasuries could make things worse. Dalio, on the other hand, thinks that the diminishing purchasing power of fiat-based products is a bigger problem. This makes scarce assets like Bitcoin more appealing.
What the market means and what investors should think about
A lot of people in the crypto community have talked about what Dalio said. People on X, like, were happy at his endorsement and remarked, “Billionaire Ray Dalio just said that Bitcoin and crypto are now alternative currencies against the USD because there isn’t much of them!” This feeling shows that more and more investors trust crypto as a way to protect themselves from economic unpredictability.
Analysts agree with Dalio’s viewpoint. JPMorgan’s most recent research set a fair value goal of $126,000 for Bitcoin, saying that its volatility is going down and more businesses are using it. The combination of macro dynamics like a weak dollar, rising debt, and monetary easing makes cryptocurrencies look good, but short-term volatility is still a worry.
Dalio’s ideas show how important it is for investors to spread their money around. Cryptocurrency protects against the devaluation of fiat money, but its price changes and lack of clear rules mean that you need to be very careful with your money.
Dalio says that putting some of your money into crypto can make you more resilient, but investors should talk to financial professionals and do their homework before doing anything.
Conclusion
Ray Dalio’s most recent comments suggest that cryptocurrencies are a good option in a time when the U.S. is in more debt, the dollar is weak, and there is a lot of uncertainty across the world.
He makes a case for crypto as a store of value alongside gold by comparing it to past debt cycles and pointing out that there isn’t much of it. But he reminds people of the risks that come with regulation and market changes, which keeps their excitement in check.
Cryptocurrencies are becoming more popular as a way to protect against traditional financial risks as the U.S. faces a shaky fiscal situation with $1 trillion in annual interest payments and a debt crisis on the horizon. This moment is both an opportunity and a warning for investors. It marks a major change in how digital assets are used in global banking.
