Ray Dalio Backs Bitcoin as US Debt Could Spiral to $60 Trillion

Ray Dalio warns U.S. debt could reach $60 trillion within a decade, raising the risk of severe financial disruption. The Bridgewater Associates founder recommends 10% to 15% in gold, plus a bit of bitcoin, as currencies weaken.

“I expect non-government-produced monies like gold and bitcoin to do relatively well.”

Debt growth had already been running fast ahead of that milestone, adding nearly $1 trillion within five months. Dalio said current projections imply another substantial increase over the coming decade as deficits require continued borrowing and interest expenses consume more federal revenue. The investor wrote:

“After taking the recently passed budget reconciliation bill into account, most of the independent assessors of the situation project that the debt in 10 years will be $55-60 trillion.”

The expansion revived discussion of the debasement trade, under which investors reduce exposure to currencies and bonds while favoring scarce assets. Bitcoin advanced as the Treasury buyback announcement drew attention to dollar weakness, although Treasury repurchases do not constitute Federal Reserve quantitative easing and do not create money by themselves.

The Bridgewater Associates founder ultimately favors broad diversification while reducing exposure to debt assets and allocating some capital to non-government money. He advised:

“As general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of bitcoin.”

“Having a small percentage—maybe 10-15%—of one’s money in gold can reduce a portfolio’s risk, and I think it would also raise its return,” he concluded.