According to Dalio, “We are printing too much money, and it’s not just in the United States.”
Almost every major country has been dealing with inflation for the past year or so. As a result, both consumers and corporations have felt the pain, as earnings during the last four quarters have been relatively weak. It has caused the U.S. and other countries’ debt to soar even though inflation is slowly declining.
In his view, Bitcoin is not a good solution due to its volatility, lack of relevance, and the fact that many industries are more interesting than cryptocurrency. Digital currencies could be the answer to the Bitcoin problem, even if Bitcoin isn’t the answer. “Inflation-linked coins would be the best,” Dalio proposed, noting that the closest thing on the market to his vision is an inflation-linked index bond.