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

Dalio Backs Bitcoin as Debt Risks Intensify

Bridgewater Associates founder Ray Dalio said growing debt, weakening demand for government bonds, and monetary expansion could erode currencies while supporting scarce assets. In an Aug. 21 LinkedIn analysis, he stated:

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

Bitcoin’s potential role rests partly on its predetermined issuance and maximum supply of 21 million coins. Its store-of-value characteristics include scarcity, portability, self-custody, and resistance to monetary debasement, although substantial volatility prevents it from providing consistent short-term stability.

Dalio’s support remains measured rather than unconditional, reflecting his continued preference for gold as the more established monetary asset. In May, he argued that bitcoin’s correlation with technology stocks weakens its safe-haven appeal when investors sell volatile holdings to cover losses elsewhere.

US Debt Could Reach $60 Trillion

Federal finances already reflect several pressures highlighted in Dalio’s debt-cycle framework, including persistent deficits and rising interest costs. The Congressional Budget Office projected a $1.9 trillion fiscal 2026 deficit, with federal outlays of $7.4 trillion, revenue of $5.6 trillion, and debt held by the public reaching 120% of gross domestic product by 2036.