Bridgewater Fund Founder: Dollar's Poor Debt Situation Indirectly Drives Cryptocurrency and Gold Price Surge
BlockBeats News, September 3rd, Ray Dalio, the founder of Bridgewater Associates, stated today that he does not believe that easing cryptocurrency regulation will threaten the US dollar's reserve currency status. However, the deteriorating debt situation of the US dollar and other reserve currency governments affects their attractiveness as reserve currencies and stores of wealth, which has always been one of the factors driving the rise in gold and cryptocurrency prices.
Furthermore, Ray Dalio does not believe that stablecoins' exposure to government bonds poses a systemic risk. The real risk is the declining purchasing power of government bonds, and if stablecoins are well-regulated, this should not pose any systemic risk.
“Cryptocurrency is now an alternative currency with a limited supply, so under the same conditions, if the supply of the US dollar increases and/or demand for it decreases, this may make cryptocurrency an attractive alternative currency.”
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