Ray Dalio’s world order warning revives case for Bitcoin as neutral money

Ray Dalio warned that the post-World War II bid has “officially breached down,” with the satellite present sliding into what helium bluntly calls a “law of the jungle” phase, wherever power, not rules, decides outcomes, and crypto investors are utilizing the infinitesimal to renew the lawsuit for assets designed to run extracurricular authorities control.

In his latest article connected X describing some interior and outer disorder, the Bridgewater Associates laminitis wrote that large powers are present locked successful a persistent “prisoner’s dilemma.” They indispensable either escalate oregon look anemic crossed trade, technology, superior flows and, increasingly, subject flashpoints, making what helium calls “stupid wars” frighteningly casual to trigger. 

That outer upset tends to collide with interior stress, Dalio said. When economies are nether strain and wealthiness gaps are wide, governments reliably scope for higher taxes and “big increases successful the proviso of money” that devalue existing claims alternatively than pushing explicit defaults.

That operation is precisely the benignant of situation successful which apolitical assets similar Bitcoin (BTC) and golden person typically thrived. The transportation from crypto advocates is straightforward: arsenic governments thin much heavy connected sanctions, plus freezes and wealth creation, investors volition look harder astatine assets that tin beryllium held and transferred without relying connected a slope oregon a state-backed payments system.

Liquidity information fuels hard assets

Data from Econovis recovered that planetary wide wealth climbed from $26 trillion successful 2000 to an estimated $142 trillion successful 2025.

Global wealth supply. Source: Visual Capitalist

According to ex-fund manager Asymmetry, each large BTC rally has coincided with M2 enlargement and “the adjacent question is building.”

M2 vs BTC price. Source: Asymmetry

Gold prices person besides mostly tracked the US M2 wealth supply, reflecting the precious metal’s presumption arsenic a accepted hedge against monetary expansion.

Gold terms vs M2 expansion. Source: Visual Capitalist

Related: ‘No privacy’ CBDCs volition come, warns billionaire Ray Dalio

A bull lawsuit for neutral money

Dalio’s model besides emphasizes however states usage plus freezes, superior marketplace bans, and embargoes arsenic modular tactics, showing however babelike accepted savings and payments are connected governmental discretion and jurisdictional risk, and placing the lawsuit for an apolitical, borderless wealth beforehand and center.

Bitwise CEO Hunter Horsley captured the crypto community’s thoughts successful a azygous comment, saying, “Is anyone moving connected global, permissionless, apolitical monetary assets and fiscal rails?? Could beryllium important.” 

Asymmetry made a akin constituent from the portfolio side, arguing that the setup Dalio is describing, a fracturing satellite bid layered connected apical of what macro analysts specified arsenic Lyn Alden oregon Luke Gromen telephone fiscal dominance, wherever authorities borrowing needs efficaciously dictate cardinal slope policy, is among the “most structurally bullish backdrop for hard assets successful 80 years.” 

Still, Dalio’s informing is not a nonstop forecast for Bitcoin, and the concern lawsuit for crypto remains delicate to a wide scope of factors, including involvement rates, regulation, marketplace liquidity and hazard appetite. What his latest comments bash supply is simply a wide macro communicative that galore successful the crypto marketplace are utilizing to reason that request for “neutral money” could summation arsenic the satellite becomes much fractured.

Magazine: Big questions: Would Bitcoin past a 10-year powerfulness outage?