Ray Dalio warns global order collapse may boost crypto

Ray Dalio warns the post-WWII global order is collapsing, fueling debate on crypto as an alternative. While volatility remains, digital assets may gain relevance amid rising geopolitical risks.

Ray Dalio has warned that the global order established after World War II is breaking down. He describes the current era as "Stage 6" of his "Big Cycle," where power dynamics override established rules and agreements. This shift is fueling increased geopolitical tensions, with economic, technological, and capital conflicts likely to precede potential military confrontations. Dalio draws parallels to the 1930s, noting that economic pressures and deglobalization trends often set the stage for broader conflicts. In this environment of instability, there is renewed debate about the resilience of traditional financial systems and the potential role of cryptocurrencies as alternative assets. While gold remains a leading safe haven, cryptocurrencies are being evaluated for their ability to resist censorship and asset freezes. However, they may face short-term volatility amid rising geopolitical and liquidity risks. Investors and policymakers are watching closely to see how digital assets might function in a fragmenting global financial landscape.