Billionaire and co-founder of hedge fund Bridgewater, Ray Dalio, warned during a speech at the Abu Dhabi Financial Week on Tuesday that the global financial sector is on the brink of a debt crisis and urged investors to turn to assets like Bitcoin and gold.
Dalio expressed concerns about the rising debt levels in major economies and advised against debt-based investments. "I believe there may be an unresolved debt issue," he said. "I want to stay away from debt assets like bonds and debt and have some hard currencies like gold and Bitcoin."
The trading prices of precious metals and cryptocurrencies are both near historical highs as investors seek alternatives amid economic headwinds and geopolitical tensions. Bitcoin broke the long-awaited $100,000 threshold last week, driven by investor expectations of cryptocurrency-friendly policies from U.S. President-elect Donald Trump.
Dalio emphasized that debt levels in major economies, including the United States and China, are at "unprecedented levels" and warned that this trend could lead to a debt crisis in the coming years. "These countries cannot avoid a debt crisis in the coming years, which will lead to a significant decline in currency value."