Ray Dalio warns of looming debt crisis, recommends shifting to bitcoin, gold


(MENAFN) Billionaire investor Ray Dalio has cautioned about an impending debt crisis threatening global finance and urged investors to focus on assets such as Bitcoin and gold.

During his speech at Abu Dhabi Finance Week on Tuesday, Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, expressed alarm over the escalating debt levels in leading economies and advised against investing in debt-related assets.

“I believe that there would likely be a pending debt money problem,” Dalio said on Tuesday, as reported by the South China Morning Post. “I want to steer away from debt assets like bonds and debt, and have some hard money like gold and Bitcoin.”

Both Bitcoin and gold have been experiencing near-record prices as investors seek alternatives amidst economic challenges and geopolitical tensions. Bitcoin surpassed the highly anticipated USD100,000-mark last week, driven by investor optimism over crypto-friendly policies from the incoming US President, Donald Trump.

Dalio emphasized the “unprecedented levels” of debt in major economies such as the US and China, warning that this trend could trigger debt crises in the near future.

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