Ray Dalio Predicts US Debt Crisis and Backs Bitcoin, Gold Over Bonds

Ray Dalio, once one of the most prominent crypto critics, has made a new case for owning gold and bitcoin as he believes the United States is approaching a dangerous point in its debt cycle.

The founder of Bridgewater Associates noted that investors should reduce their exposure to bonds, allocate 10%-15% of their holdings to gold, and hold ‘a bit of bitcoin’ as protection against what could eventually become a full-blown US debt crisis.

Gold and BTC Over Bonds As reported by CNBC, the billionaire investor’s arguments center around the rapidly deteriorating US fiscal position as the federal government is expected to collect approximately $5.5 trillion in revenue this year while spending is anticipated to be at roughly $7.5 trillion.

In other words, this presents a shortfall of around $2 trillion. At the same time, $10 trillion of government debt needs to be refinanced, and interest expenses alone are approaching $1 trillion.