According to PANews, Ray Dalio, the founder of Bridgewater Associates, has warned about the fragility of the global monetary system, which he believes is overly dependent on debt. He suggested that governments may resort to devaluing their currencies through inflation and low-interest policies, prompting investors to seek alternative assets that are not reliant on debt.
Bitcoin as a Potential Alternative Currency
Dalio acknowledged Bitcoin’s growing role as a hedge asset, noting that its high liquidity makes it a more flexible store of value compared to real estate, which is vulnerable to taxation or government confiscation. However, he cautioned that Bitcoin is still evolving and does not yet fully function as a true alternative currency. While he recognizes its potential, he believes a more stable, widely accepted non-debt-based currency has yet to be developed.
Gold as a Strategic Investment in Uncertain Times
Regarding gold, Dalio expressed a stronger endorsement than in previous years, highlighting its historical role as a hedge against economic instability. However, he advised against over-reliance on any single asset, recommending that investors allocate 10% to 15% of their portfolios to gold as a prudent strategy for risk management.
A Diversified Approach to Uncertain Markets
Dalio emphasized that diversification remains the best defense against economic uncertainty. While assets like Bitcoin and gold provide protection, he advises investors to maintain a balanced portfolio to navigate future risks effectively. As global debt levels rise and monetary policies remain uncertain, Dalio’s perspective reinforces the growing investor interest in non-traditional assets.
