Bridgewater Associates founder: The dollar's distressed debt situation indirectly drives up gold and cryptocurrency prices

Ray Dalio, founder of Bridgewater Associates, published an article today discussing stablecoins and cryptocurrencies. His key points include: 1. He does not believe that deregulating cryptocurrencies will threaten the US dollar's reserve currency status. However, the distressed debt situation of the US dollar and other reserve currency governments does affect their attractiveness as reserve currencies and storeholds of wealth, which has been a factor driving the prices of gold and cryptocurrencies. 2. He does not believe that stablecoins' exposure to government bonds poses a systemic risk. The real risk lies in the decline in the actual purchasing power of government bonds, which should not pose any systemic risk if stablecoins are well regulated. 3. Cryptocurrencies are currently an alternative currency with a limited supply. Therefore, all else being equal, an increase in the US dollar supply and/or a decline in demand for it could make cryptocurrencies an attractive alternative.