Ray Dalio Warns that Bitcoin Could Rival the Dollar as Debt Climbs

Key Takeaways:

• Dalio warns U.S. debt threatens the dollar, boosting Bitcoin's appeal as an alternative.
• Gold reaches new peaks as Bitcoin shows resilience near its own recent high.
• Mounting bond market losses are pushing investors toward crypto and other havens.

Billionaire hedge fund founder Ray Dalio has warned that America’s swelling debt threatens the dollar’s role as a store of value, putting Bitcoin in the spotlight as a possible replacement. He argues that while governments can print unlimited fiat money, Bitcoin’s mathematically limited supply makes it more reliable when confidence in the dollar begins to fade.

Devalued Fiat & Soaring National Debt Drives Crypto Adoption

In an X post on September 3, Dalio drew parallels between current fiscal conditions and historical periods of monetary instability, such as the 1930s departure from the gold standard and the 1970s stagflation crisis. 

https://t.co/TNyPpZYTmZ

— Ray Dalio (@RayDalio) September 2, 2025

He noted that rising debt levels and expansive monetary policies are again threatening the dollar’s role as the world’s reserve currency.

That cycle, he warned, is playing out again. At the time of this report, America owes $37.27 trillion in public debt, a figure built over decades of borrowing. 

This burden, Dalio argued, makes the dollar increasingly fragile. The higher the debt, the weaker the faith in the currency that supports it.

Bitcoin, capped at 21 million coins, cannot be inflated the same way. Its growing appeal is evident in market activity, where more investors now treat it as a hedge against inflation rather than a short-term gamble.

Dalio has also raised concerns about stablecoins, noting that their biggest weakness comes from the shrinking value of the Treasuries that back them. 

With debt climbing, those assets no longer provide the stability they once did. 

This is not the first time Dalio has advocated for diversification into non-traditional assets. On July 27, he publicly recommended allocating at least 15% of investment portfolios to gold and Bitcoin to mitigate risks associated with today’s fragile economic environment.

Gold and Bitcoin Trends Point Toward Bigger Breakouts

Market trends reinforce Dalio’s outlook. Gold has reached record highs, surpassing $3,600 per ounce and gaining 33% year-to-date—far outpacing the S&P 500 and reaffirming its status as a safe haven.

Gold GLD just hit a new all-time high above $3,600 an ounce and is now up 35% on the year. Looking forward I believe gold has entered a new bull market and Im expecting more gains in the next few years. pic.twitter.com/v2SMNkq2Rx

— Michael Vodicka (@MikeVodicka) September 2, 2025

Similarly, Bitcoin continues to show resilience despite recent volatility. On August 14, the asset reached an all-time high of $124,457. Prices have since pulled back to the $110,000 range, down nearly 11% from the peak. 

Growing adoption, improving regulatory clarity, and increasing institutional interest suggest continued momentum.

Other voices echo Dalio’s backing of gold and Bitcoin. 

Robert Kiyosaki, author of Rich Dad, Poor Dad, recently cautioned about the risk of a global financial crisis. 

He highlighted that government debt markets are already under stress. European bonds are down 24%. British bonds have fallen 32%. Even U.S. Treasuries, the backbone of global finance, are down 13% since 2020.

To Kiyosaki, these declines reveal that traditional assets are struggling to provide stability. He, too, advocates for protective allocations in gold, silver, and Bitcoin. Real-world examples of this shift are already unfolding. 

Tokyo-based LibWork announced plans to acquire $3.3 million worth of Bitcoin between September and December 2025. The company said the move was necessary in its bid to shield its reserves from Japan’s persistent inflation and the risks of holding devaluing cash.