Ray Dalio says Crypto an “attractive alternative currency”

Ray Dalio warned that the US could be confronted within three years a ‘heart attack’ caused by debts, because the rising debt weakened the dollar and Crypto called an ‘attractive alternative currency’.

He compared the financial situation of the US with the cumulative toll of years of excesses, such as too many fatty foods and smoking for a lifetime.

“The large excesses that are projected under the new budget will probably in the relatively near future cause a heart attack caused by debts-I would say three years, give or take a year or two,” said the founder of the billionaire investor and Brugwater Associates in an interview with the Financial Times, Later shared on X.

“Crypto is now an alternative currency that has limited its stock,” said Dalio. “So all things are the same, if the supply of dollar money rises and/or the demand for it is falling, that would probably make an attractive alternative currency.”

He added that most Fiat -Malutas, in particular those with large debts, will have problems with effective wealth and value of hard currencies, and noticed that similar situations took place between 1930 and 1940, and again between 1970 and 1980.

Crypto -Regulation not the real threat to the dollar reserve status

Dalio said that Deregulation of Crypto in the US under Donald Trump is not a threat to the status of the Greenback as a reserve currency.

The real risk of rescuing currency governments is tThere is the heir of the heir, who reduces their profession as a reserve currency and pushes investors to alternative options, which is an important reason why gold and crypto prices have risen, he said.

Gold recently reached a new all-time High (ATH) above $ 3,508 per ounce.

Monthly graph for the gold price (source: Tradingview))

In the meantime, crypto market leaders Bitcoin (BTC) and Ethereum (ETH) have also recently reached new record peaks. BTC achieved his new ATH of $ 124,457.12 on August 14, while ETH A new high reached $ 4,953.73 on 24 August.

The exposure that Stablecoins have to American treasury is also not a systemic risk, he said, but a decrease in the purchasing power of treasuries is “a real risk.”

American National Debt Spirals

While Gold, BTC and ETH all touch fresh Aths this year, the American national debt continues to rise and she recently reached record levels.

In August, the American national debt was $ 37 trillion for the first time. According to data from USDEBTCLOCH.orgThe national debt has since continued to rise and stands at more than $ 37.31 trillion per 5:11 hour.

During the interview, Dalio said that the “deteriorated state is due to years of excesses.” He added that the new budget will probably lead to “a heart attack -induced heart attack” for the financial system, and estimates that it will happen in about three years “give or take or take.”

“If the expenses for debt and debt service grow faster than the incomes, they build themselves up as a plaque that makes other expenses,” he said.

He further said that it is easy to see that happening quickly, and noted that the payments of the US government are now about $ 1 trillion a year in interest and “rise with a quick rate.”

It is not only the US, the global bonds are also under renewed pressure due to inflation problems and the large tax deficits of governments.

While the American 30-year-old treasury of 5%are almost 5%, the British 30-year-old bonds have risen to their highest level since 1998. In the meantime, the 20-year bonds of Japan have also risen at their highest level this century, and the Australian 10-year yields have reached their highest level since July.

Wrong.

Treasury outputs are rising today in the US with the return of 30 years at 5%.

These are the same levels that are seen in 2008, amid the greatest financial crisis in American history.

The interest rates literally rise as the market prepares for tariff reductions to start. pic.twitter.com/xoym9k2u6i

– De Kobeissi -Letter (@kobeissiletter) September 2, 2025

The increasing bond provision has been correlated with an increase in government loans, indicating that those governments spend more money than they collect in taxes. To cover this gap between tax revenues and expenses, governments issue bonds, but investors now demand higher returns to absorb all extra debts.

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