Billionaire Ray Dalio Warns Dollar Could Fall, Says Bitcoin Can Be a Safe Option

Ray Dalio Warns Dollar is Weakening, Sees Bitcoin as Hedge

Billionaire investor Ray Dalio says the U.S. is entering the late stage of its debt cycle, which could threaten the dollar’s position as the world’s main reserve currency. He believes this situation may increase demand for Bitcoin, gold, and other assets with limited supply.

Dalio, founder of Bridgewater Associates, made these comments after accusing the Financial Times of twisting his views in an interview. To clarify, he published the full Q&A exchange.

U.S. Debt Problem

Dalio highlighted that the U.S. now spends about $1 trillion every year just on interest payments for its debt. Combined with new borrowing, this weakens confidence in U.S. bonds and the dollar. As a result, investors may start looking more at alternatives like Bitcoin.

“Crypto is now an alternative currency with limited supply,” Dalio said. “If the dollar supply keeps rising while demand falls, crypto becomes more attractive.”

He also noted that, over time, all fiat currencies lose value compared to “hard” assets like Bitcoin and gold—similar to what happened in the 1930s–40s and 1970s–80s.

Dollar’s Reserve Status at Risk

Dalio explained that the Federal Reserve is in a tough spot:

• If it raises interest rates, it risks defaults and financial chaos.
• If it prints more money, the dollar’s value will weaken further.

Foreign investors are already cutting back on U.S. bonds and buying more gold. Political pressure on the Fed, Dalio warned, could speed up the loss of confidence and drive more investors to decentralized assets like Bitcoin.

A Bigger Picture

Dalio connects this to what he calls the “big cycle,” where factors like high debt, political conflict, global tensions, climate issues, and technology shifts all come together. He thinks this mix could bring massive changes within the next five years.

In past advice, Dalio suggested investors keep 10–15% of their portfolio in assets like gold and Bitcoin to protect against money losing value.

By publishing his full remarks, Dalio said he wants to give a clear, non-political view of how U.S. policies are reshaping global finance. For Bitcoin, his warning suggests its role as a hedge could grow as trust in the dollar declines.