Ray Dalio says that crypto is an “attractive alternative currency”

Ray Dalio warned that the United States could face a “heart attack” induced by the debt within three years while the row weakens the dollar and called Crypto as an “attractive alternative currency”.

He compared the United States’s financial situation in the cumulative assessment of years of excess, such as the overeating of fatty food and smoking during a lifetime.

“The big excesses planned for the new budget will probably trigger a cardiac attack induced by the debt in the relatively close future – I would say three years, give or take a year or two,” said the founder of the billionaire investor and Bridgewater Associates in an interview with the Financial Times, later shared on X.

“Crypto is now an alternative currency that has its limited supply,” said Dalio. “Thus, all other things being equal, if the supply in dollars increases and / or demand for it, it would probably make cryptography an attractive alternative currency.”

He added that most fiduciary currencies, in particular those with important debts, will have problems being effective wealth stores and will drop in value compared to hard currencies, noting that similar situations occurred between 1930 and 1940, and again between 1970 and 1980.

The deregulation of the crypto and not the real threat of the status of reserve of the dollar

Dalio said that the deregulation of crypto in the United States under Donald Trump is not a threat to the status of the greenback as a reserve currency.

The real risk of reserving foreign currency governments isThe legacy of the spiral debt, which decreases their call as a reserve currency and pushes investors to alternative options, which is one of the main reasons why gold and cryptography prices have climbed, he said.

Gold recently reached a new summit of all time (ATH) above $ 3,508 per ounce.

Monthly table for the price of gold (source: Tradingview))

Meanwhile, market leaders Crypto Bitcoin (BTC) and Ethereum (ETH) have also recently made new records. BTC Directed its new ATH of $ 124,457.12 on August 14, while Ethn reached a new summit at $ 4,953.73 on August 24.

The exposure that stablecoins have for us treasury bills also does not present a systemic risk, he said, but a drop in the purchasing power of treasury bills is “a real risk”.

American national debt spirals

While Gold, BTC and ETH have all struck new ATH this year, the American national debt continues to skyrocket and has also recently reached record levels.

In August, the American national debt exceeded 37 billions of dollars for the first time. According to data from usdebtclock.orgThe national debt has since continued to increase and is at more than 37.31 billions of dollars at 5:11 HNE.

Dalio said during the interview that “the aggravated state is due to years of excess”. He added that the new budget will probably lead to “a heart attack induced by debt” for the financial system, believing that this will happen in about three years “give or take or take a year or two”.

“If debt and debt expenses increase more quickly than income, they accumulate like a plaque that eliminates other expenses,” he said.

He continued by saying that it is easy to see this happen soon, noting that the payments of the American government’s debt service are now about 1 billion of dollars per year and “increase at a quick pace”.

It is not only the United States, global obligations also undergo renewed pressure due to inflation problems and major budgetary deficits of governments.

While 30-year-old American treasury bills are approaching 5%, 30-year-old UK has climbed to their highest levels since 1998. Meanwhile, Japanese bonds over 20 years have also reached their highest levels, and 10-year-old Australian yields have reached their highest level since July.

Fake.

Treasury yields are increasing in the United States today with the yield from 30 years to 5%.

These are the same levels observed in 2008, in the midst of the largest financial crisis in the history of the United States.

Interest rates are literally increasing as the market is preparing for rate drops to start. pic.twitter.com/xoym9k2u6i

– The Kobeissi letter (@kobeissiletter) September 2, 2025

The supply of increasing bonds is correlated with an increase in government loan, noting that these governments spend more money than they do in taxes. To cover this difference between tax income and expenses, governments issues bonds, but investors now require higher yields to absorb all additional debts.

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