Dalio dey warn say US National Debt wey dey grow dey push Bitcoin hedge
Ray Dalio wey be founder for Bridgewater Associates don warn say di recent US budget law go make di national debt for each US household climb from $230,000 to $425,000 for di next ten years. E go raise di debt-to-GDP ratio from 100% to 130% plus double di yearly interest costs. E talk say if dem no reduce spending, increase tax or do strong monetary policy, investors fit face devaluation of dollar and lose money on bonds. Big people like Bitwise CIO Matt Hougan, Real Vision’s Raoul Pal and BlackRock’s Larry Fink don talk say Bitcoin good as hedge against US national debt devaluation because e get fixed supply. Dis Bitcoin hedge story still get support from worries about inflation and currency dilution. But Coinbase analysts dey warn say if dem fill Treasury General Account again, market liquidity fit go down, wey fit cause short term risk for Bitcoin and other risk assets.
Bullish
The big increase for US national debt plus the inflation wahala dey make people dey want Bitcoin as protection, and this one dey good for the price. But short-term gbege with money from Treasury General Account fit cause small wahala for market. For long time, the way debt go dey grow and worries about dollar losing value fit make people still dey interested and market still dey go up for Bitcoin.