Ray Dalio: "Bitcoin Will Be a Survival Asset if the Financial System Collapses"

▲ Bitcoin (BTC), Gold, U.S. Dollar (USD) / ChatGPT-generated image

As the global struggle for hegemony intensifies and warnings emerge that the existing financial system is nearing a breaking point, virtual assets are drawing attention as a new means of survival.

According to cryptocurrency-focused outlet BeInCrypto on February 16 (local time), Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, assessed that the current world order has entered stage six of a major cycle known as the “Big Cycle.” Dalio analyzed that the international rules upheld since the end of World War II are losing effectiveness, ushering in an era of disorder governed solely by power dynamics. During periods of escalating clashes between major powers, Dalio warned, the value of traditional assets such as cash and bonds can be severely eroded.

Dalio categorized global turmoil into five forms of conflict: trade, technology, capital, geopolitics, and military warfare. He identified the ongoing power struggle between the United States and China as the most dangerous flashpoint, noting similarities to the period following the Great Depression of the 1930s, when asset freezes and financial restrictions ultimately led to World War II. As governments recklessly issue currency to finance wartime expenditures, trust in fiat money is bound to deteriorate.

The virtual asset market is likely to benefit in the long term amid such financial fragmentation. Bitcoin (BTC), which is resistant to censorship and not controlled by any single country, can function as an alternative payment network when traditional banking systems become paralyzed or capital controls are tightened. However, Dalio cautioned that in the short term, if macroeconomic liquidity contracts, Bitcoin may also be classified as a high-risk asset and face extreme price volatility.

As market uncertainty intensifies, a shift back to gold among investors is expected to become more pronounced. Dalio emphasized that as government money printing erodes debt value, investors should drastically reduce or sell bonds and increase their gold holdings. The recent surge in precious metal prices to record highs indicates that investors currently place greater trust in the defensive strength of physical gold than in Bitcoin’s “digital gold” narrative, suggesting that virtual assets require further validation before being recognized as true safe-haven assets.

Ultimately, surviving a turning point in the Big Cycle requires restructuring macro-level asset allocation strategies rather than reacting to short-term price fluctuations. While virtual assets hold strong potential as alternatives capable of filling cracks in the fiat currency system, a cautious approach that secures both liquidity and stability is essential during geopolitical crises. Investors must heed warnings about the decline of traditional assets and prepare for the sweeping transformation ahead in capital markets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any losses resulting from investment decisions based on it. The content should be interpreted solely for informational purposes.*