Key Takeaways
- Ray Dalio says the world money system faces a big risk. Trade fights between big countries like the United States and China can slow business and raise prices.
- Many countries also have very big debts after COVID-19. They must pay more interest now. This can hurt markets and people’s savings.
- Dalio likes hard money like gold and Bitcoin. Bitcoin has a fixed supply, so no bank can print more.
- Many people see it as digital gold. Investors should stay calm, save wisely, and lower risk.
- A smart plan can help people stay safe if big market changes come later.
DOLLAR TREMBLING, NATIONS REASSEMBLING, BTC VALUE KEEPS RESEMBLING GOLD
Is Bitcoin the Shield Against a Breaking Financial System? According to Bridgewater Associates founder Ray Dalio, there are problems with the global monetary system. He claims that issues are being caused by excessive trade levies, international conflicts, and large debts. He cautions investors to prepare for significant fluctuations in the market.
Dalio claims that trade between nations has decreased. They are developing new trade plans with less U.S. assistance. He uses the trade dispute between China and the United States as an example. Shops receive fewer goods, prices rise, and GDP slows when major nations stop trading. People begin to have less faith in the global system.
Today’s BTC Graph
Technical Analysis
- Right now, the market appears to be a little weak, but not too bad.
- The RSI shows the price is calm. Neither too high nor too low. This indicates that both buyers and sellers are holding out.
- A slight purchase signal is given by the MACD. It suggests that the price might attempt to increase shortly. Slowly, buyers are returning.
- However, a sell signal is displayed by the moving averages. This indicates that the long-term trend is continuing to decline. The market is still weak.
High Government Debt & Slow Growth
Dalio also discusses the large amount of public debt. Following COVID-19, many nations took out large loans to support their citizens and enterprises. They have to pay extra interest now.
They can have trouble repaying the loan if their economies expand slowly. In the past, financial difficulties and market crashes often resulted by large debts and national conflicts.
Ray Dalio prefers “hard money” like gold and Bitcoin because of these risks. Over time, hard currency retains its worth better. Bitcoin has a set quantity.
No government or bank is able to print more of it. Bitcoin is now frequently referred to as “digital gold.” People switch to gold or Bitcoin as a safe haven when they lose faith in fiat money.
The price of Bitcoin has increased numerous times. This illustrates the pattern. More people are looking at Bitcoin when they are concerned about inflation or when the US currency declines.
Bitcoin is also purchased and held in savings by large corporations and funds. Bitcoin’s price may rise in the future as more people purchase it.
Conclusion
The international financial system could be in serious peril, according to Ray Dalio. Markets can be harmed by trade disputes, excessive debt, and a lack of confidence. Investors should continue to exercise caution and make risk plans. To protect their money, a lot of people might choose gold and Bitcoin.
People may stay strong in the event of significant market changes in the future by having a well-thought-out plan, lowering their risk, and making wise savings decisions.
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