Ray Dalio Backs Bitcoin as U.S. Debt Could Reach $60 Trillion

Bridgewater Associates founder Ray Dalio warned that U.S. federal debt could climb to $55‑$60 trillion over the next ten years, raising concerns about long‑term currency depreciation.

Debt Outlook and Fiscal Pressures

Federal debt topped $40 trillion on Aug. 18, 2026, and the Congressional Budget Office projects a $1.9 trillion deficit for fiscal 2026. Outlays are expected to reach $7.4 trillion while revenues lag at $5.6 trillion, pushing debt held by the public toward 120 % of GDP by 2036.

Dalio’s Asset Allocation Advice

In a LinkedIn analysis dated Aug. 21, Dalio suggested investors allocate 10‑15 % of their portfolios to gold and add a modest exposure to bitcoin. He described gold as the more established “scarce asset” and noted bitcoin’s fixed supply of 21 million coins as a potential hedge against monetary debasement.

Bitcoin’s Role and Limitations

Dalio highlighted bitcoin’s scarcity, portability, self‑custody and resistance to inflation, but cautioned that its volatility limits short‑term stability. He also pointed to risks such as code vulnerabilities, possible government restrictions, and the current lack of central‑bank reserve status.

Policy Signals

The U.S. Treasury announced expanded buybacks of 10‑ to 30‑year securities on Aug. 19, increasing the maximum purchase size to at least $4 billion per operation. The move, while not a Federal Reserve QE action, underscored concerns about dollar weakness and reinforced discussions about shifting to scarce assets.

Overall Outlook

Dalio’s stance reflects a broader shift toward diversification away from debt‑heavy assets. He advises investors to favor assets with strong balance sheets, limit exposure to sovereign bonds, and consider modest positions in gold and bitcoin to reduce portfolio risk.