- Dalio warns that rising government debt will weaken fiat currencies, making Bitcoin and gold essential stores of value.
- Bitcoin’s price surge in 2025 signals growing confidence in its ability to serve as a non-fiat alternative asset.
- Institutional investors, like Michael Saylor’s strategy, continue to accumulate Bitcoin, reinforcing its status as a credible store of value.
Ray Dalio, the founder of Bridgewater Associates, recently discussed the role of Bitcoin and non-fiat currencies in today’s financial landscape. Speaking at the FutureChina Global Forum 2025, Dalio shared his thoughts on the U.S. economy and global financial risks. He highlighted how rising government debt and currency printing could weaken fiat currencies, making alternatives like Bitcoin and gold increasingly significant.
Dalio noted that many governments worldwide are engaging in extensive borrowing, which increases the vulnerability of fiat currencies. The U.S. dollar, euro, and other major currencies are being printed to manage debt, leading to potential inflationary pressures. This trend, Dalio argued, will cause fiat currencies to lose value over time, making non-fiat assets more appealing as stores of value.
Bitcoin’s Credibility Grows Despite Volatility
Dalio’s comments also underscored Bitcoin’s potential as an alternative asset. While Bitcoin remains volatile, its long-term growth trajectory cannot be ignored. Bitcoin’s recent surge—hitting an all-time high of $124,457.12 in August 2025—further reinforces its place in the financial world. Despite a recent decline in its value, Bitcoin continues to show signs of upward movement, making it a credible option for investors seeking stability.
Institutional investors are increasingly turning to Bitcoin as a store of value. Firms like Strategy, led by Michael Saylor, have been aggressive in acquiring large amounts of Bitcoin. As of the latest reports, Strategy holds nearly 640,000 BTC. Despite critics, including gold advocate Peter Schiff, who question Bitcoin’s ability to store wealth, institutional investment is rising. These companies believe in Bitcoin’s long-term potential, further solidifying its position as a serious asset class.
Dalio’s Advice: Allocate to Non-Fiat Assets
Dalio suggested that investors should consider allocating around 10% of their portfolios to non-fiat assets like gold and Bitcoin. These assets, he believes, will maintain their purchasing power or even appreciate over time. Given Bitcoin’s impressive growth and institutional adoption, Dalio sees the digital currency as a reliable hedge against inflation and currency devaluation.
