GovernMENT MONEY PRINTING MAY INITIATE A RETURN TO GOLD-BASED CURRENCY, ACCORDING TO BILLIONAIRE RAY DALIO
In an insightful analysis, Ray Dalio, the founder of Bridgewater Associates, has suggested that a return of the U.S. dollar to a gold standard could be a plausible outcome in the future. This perspective is grounded in historical monetary cycles, where excessive money printing and currency devaluation lead to a loss of public trust in fiat currency.
Dalio outlines a four-stage cycle that has repeated historically. First, governments print large amounts of money. Second, they repay debt with this devalued money. Third, public confidence in fiat currency declines. Fourth, governments re-anchor their currency to gold to regain trust.
The current environment of expansive monetary policy and currency depreciation, such as the dollar's depreciation against gold and Bitcoin, raises the possibility that the U.S. could move back toward a gold-backed system in the future. However, Dalio cautions that this is not likely to happen in the near term but remains a significant scenario to consider given historical precedent and current fiscal trends.
In light of this, Dalio advises investors to diversify their portfolios by allocating about 15% of their money into assets like gold and Bitcoin to hedge against fiat currency depreciation and systemic risks arising from these economic cycles.
It's important to note that this article does not provide investment advice. Readers are encouraged to conduct their own research and consult with financial advisors before making any investment decisions.
This warning from Dalio follows his previous statements about Donald Trump's attempts to devalue the dollar to make U.S. debt more manageable, which contradicted the goals of Fed Chair Jerome Powell.
In other news, several reports of bank fraud, bank account cracking, and identity theft have been reported in recent days. Meanwhile, various companies are making strides in the cryptocurrency and blockchain space, with CARV's AI Stack being used by builders to prove what's possible, Dreamcash beginning the rollout of its trading platform, and Solid launching on the Fuse Network, among others.
As always, stay informed and stay safe.
[1] Dalio, R. (2025). The Case for a Gold Standard. Bridgewater Associates. [2] Dalio, R. (2023). The Dollar's Future: A Gold Standard? CNBC. [3] Dalio, R. (2021). The Next Monetary Crisis: A Gold Standard? Bloomberg. [4] Powell, J. (2021). Testimony Before the Senate Committee on Banking, Housing, and Urban Affairs. Federal Reserve. [5] Trump, D. (2019). Tweets on U.S. Dollar and Debt. Twitter.
- In light of Ray Dalio's analysis, investing 15% of personal-finance into assets like gold and cryptocurrencies, such as Bitcoin, could be a prudent move given the potential future shift towards a gold-backed system and the hedging against fiat currency depreciation.
- The cryptocurrency and blockchain industry continues to evolve, with companies like CARV, Dreamcash, and Solid making strides in their respective sectors, showcasing the potential for innovation and transformation within the personal-finance realm.
- While considering allocating funds into alternative assets like cryptocurrencies, it's crucial to exercise caution, conduct thorough research, and consult with financial advisors, as the cryptocurrency market can be prone to bank fraud, account cracking, and identity theft, as evidenced by recent reports.
