The United States is at risk of falling into a serious financial crisis as the debt and debt repayment cycle becomes increasingly out of control. According to billionaire Ray Dalio, founder of the hedge fund Bridgewater Associates, this situation could lead to an “economic heart attack” without timely intervention from the government.

In a recent statement, Dalio warned that as the economy enters a period of having to borrow more money to pay off old debts, bondholders will become increasingly concerned about the level of risk. As a result, the economy could fall into a debt spiral with no way out.

Dalio compared this situation to an impending heart attack, emphasizing that if the government does not take measures to handle it, the financial system could collapse under its own weight.

US Public Debt and Potential Risks

The latest data shows that the US public debt has reached $33.6 trillion, while the budget deficit in 2023 will reach $1.7 trillion, equivalent to 5.8% of GDP. More worryingly, the cost of debt repayment is increasing and could reach $879 billion in 2023, almost equal to the country's defense budget.

In that context, the cryptocurrency market is also not immune to negative impacts. In just one week, the cryptocurrency market capitalization decreased by 8%, followed by a sharp decline in Bitcoin and Ethereum, losing 8% and 11% of their value, respectively. This shows that the instability of the financial system is spreading and affecting many types of assets.

Is Bitcoin the solution?

According to Dalio, in times of economic uncertainty, many investors are looking for alternative stores of value to protect their assets against inflation and crises. He asked, “What is the alternative to stable money?” and mentioned Bitcoin as an asset that could play an important role during this period.

While he did not declare Bitcoin as the “savior” of the financial system, Dalio still appreciated the potential of cryptocurrencies to act as a hedge against economic uncertainty. This view became even more notable when former US President Donald Trump announced plans to create a national strategic reserve fund that would include leading cryptocurrencies such as Bitcoin, Ethereum, Solana, Ripple, and Cardano.

Following this announcement, Bitcoin quickly jumped to over $90,000 from its previous $80,000 level. However, Bitcoin's market dominance has dropped from 55.4% to 50%, indicating a strong inflow of capital into altcoins.

What is the future for Bitcoin and the global economy?

With the instability of the traditional financial system, more and more investors are looking at Bitcoin and cryptocurrencies as an alternative. However, whether Bitcoin can truly become the "savior" for the economy is still an open question.

However, one thing is certain: trust in the old financial system is wavering, and Bitcoin is likely to play an important role in the future of the global economy.