FX.co ★ Ray Dalio: cryptocurrencies set to bloom as real alternatives to fiat money

Confidence in the cryptocurrency market is at an all-time high! Forbes-listed billionaire Ray Dalio has joined this view, lending powerful support to digital assets.

According to Dalio, virtual currencies currently act as alternative currencies. Unlike Bitcoin, which has a capped supply of 21 million coins, central banks are printing money in massive quantities, thereby devaluing it, the businessman emphasized. In Dalio’s opinion, if the supply of dollars increases significantly or demand for them falls, investors will be more inclined to shift capital into cryptocurrency. For market participants, digital assets are seen as a store of value, the billionaire highlighted.

The Bridgewater founder is convinced that most fiat currencies, especially in countries with significant government debt, have difficulty maintaining their value. “I see troubling conditions in dollar-denominated debt and other reserve currencies undermining their appeal as reserve assets and stores of value. That’s what’s driving the rise in gold and crypto prices,” Dalio believes.

The seasoned investor is not worried about systemic risks from stablecoins backed by US Treasury bonds. In Dalio’s view, the more serious problem is the decline in purchasing power of Treasury bonds themselves. Dalio emphasized that, in his view, this would not pose systemic risks for stablecoins, particularly if these digital assets are properly regulated.

It is worth noting that just a few years ago, Dalio held a different view. In 2023, he was skeptical that Bitcoin and stablecoins could replace fiat money. However, in July 2025, Dalio radically changed his approach to the digital asset market. He now recommends that investors allocate at least 15% of their portfolios to gold and Bitcoin in order to avoid economic risks associated with the equities and bond markets.