Comments from hedge fund veteran Ray Dalio have reignited debate around Bitcoin’s role in a shifting global monetary system. Dalio argues that the post-World War II rules-based order has broken down, replaced by intensifying geopolitical rivalry and domestic financial strain.
Global Disorder and Monetary Expansion Trends
Dalio describes a world increasingly shaped by power politics, trade fragmentation and capital restrictions. Historically, such periods have coincided with aggressive fiscal responses. Governments facing widening deficits and social pressures often expand the money supply rather than pursue outright defaults.
Liquidity data supports that concern. Global broad money has surged from roughly $26 trillion in 2000 to an estimated $142 trillion in 2025. Analysts note that major rallies in Bitcoin have aligned with expansions in M2 liquidity. Gold has also tracked monetary growth, reinforcing its traditional hedge narrative.
According to ex-fund manager Asymmetry;
Bitcoin as Permissionless Financial Infrastructure
Dalio highlights how sanctions, asset freezes and capital controls have become routine policy tools. For crypto advocates, this underscores the appeal of borderless, permissionless networks that operate outside direct state control.
While Bitcoin’s performance still depends on interest rates, regulation and investor sentiment, the broader macro backdrop rising debt, monetary debasement and geopolitical fragmentation has strengthened arguments for neutral monetary assets in diversified portfolios.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.