The former CEO of Bridgewater Associates, Ray Dalio, has opined that Crypto now serves as an “alternative cryptocurrency” with a limited supply.
Dalio is convinced that cryptography could become a more attractive option if the US dollar supply increases or there is a considerable decrease in green back demand.
Fiat will have difficulty being an efficient “wealth deposit” in relation to hard assets, predicts Dalio.
The end of the great debt cycle?
According to Dalio, a “great debt cycle” in the long term is finally coming to an end, and central banks will have to face difficult decisions.
If the intervention of the Central Bank stops, interest rates will increase due to the natural forces of the market, Dalio believes. While this will cool an inflation, this will also lead to a possible wave of breaches, since companies and individuals will be more difficult to attend debts.
The alternative, according to Dalio, is to create even more money, which is known as quantitative flexibility (QE). This, of course, will further undermine the trust in the fiduciary currency.
Dalio believes that there will be a vicious circle, where central banks are forced to print more money to address the existing debt.
