Bridgewater Associates founder: The poor debt situation of the dollar has indirectly driven up the prices of gold and cryptocurrencies

ChainCatcher news, Bridgewater Associates founder Ray Dalio published an article today discussing stablecoins and cryptocurrencies. His core points include:

1. He does not believe that relaxing regulations on cryptocurrencies will threaten the dollar's status as a reserve currency, but the poor debt situation of the U.S. dollar and other reserve currency governments affects their attractiveness as reserve currencies and stores of wealth, which has been one of the factors driving up the prices of gold and cryptocurrencies.

2. He does not believe that stablecoins' exposure to government bonds poses systemic risks. The real risk is the decline in the actual purchasing power of government bonds; if stablecoins are well-regulated, this should not create any systemic risks.

3. Cryptocurrencies are now a limited-supply alternative currency, so under all else being equal, if the dollar's money supply increases and/or demand for it decreases, this could make cryptocurrencies an attractive alternative currency.