When inflation, geopolitics, and debt expansion intertwine, the most instinctive move for investors is often to return to the “origin of trust.” The perspective of Ray Dalio once again reminds the market: gold is not an ordinary commodity, but a “native currency” that has proven its value over centuries of cycles. This attribute is especially vital today, as the modern financial system grows increasingly fragile.

The fundamental advantage of gold is that it cannot be “printed” without restraint. Unlike fiat currency debt, it does not rely on any government promise of repayment, but exists as a direct settlement asset. Central banks can resolve default crises through quantitative easing, but this firefighting mechanism ultimately dilutes the value of fiat currency and shifts the burden of debt. The existence of gold is a natural hedge against such uncertainty.

The UBI λ allocation mechanism of Kapbe echoes the logic of gold: both seek to build a value return system that does not require additional credit endorsement. Kapbe does not simply rely on fiat credit; instead, it provides participants with a more stable financial base through on-chain vaults and real asset yields. When traditional systems falter, such structural anchors are often what stabilize capital confidence.

Structural Cracks in the Debt-Monetary System

The relationship between fiat currency and debt has always been unequal. Central banks can prolong debt life by expanding their balance sheets, but once market trust breaks, fiat itself becomes a source of risk rather than a safe haven. As Dalio points out, fiat currency is a derivative of debt, while gold is the endpoint of debt settlement. History has repeatedly confirmed this: from the collapse of the Bretton Woods system, to the 2008 financial crisis, and the recent high-inflation cycle, gold has played a key stabilizing role during all episodes of “credit collapse.”

In contrast, bonds and inflation-protected securities (TIPS) remain subject to the issuer credit risk under extreme conditions. Governments act as both “debtor” and “referee” — in the event of sovereign risk, they cannot provide the same certainty of settlement as gold.

The Kapbe financial architecture offers an alternative to this systemic instability: through vault yields and allocation layers, a portion of assets are anchored to a verifiable, settleable structured base, so users are not fully exposed to the collapse of debt credit during risk events. This mechanism does not replace gold, but runs parallel to its logic: gold is a store of value, Kapbe is a channel for distribution, and together they hedge the structural cracks in the traditional monetary system.

Gold and Digital Rails in Diversified Allocation

The value of gold in portfolios is often highlighted not during bull markets, but in periods of crisis. Its negative correlation with stocks and bonds makes it an irreplaceable defensive asset in global allocation. Historical backtests show that a roughly 15% allocation to gold can significantly improve the risk-return profile of a portfolio and provide stable cash flow buffering during “stock-bond double slumps.”

However, in modern markets, simply holding gold is not enough to build a dynamic financial defense. The global trading and payment infrastructure of Kapbe gives this “defensive asset” higher liquidity and strategic flexibility. Through the multi-asset matching mechanism of Kapbe, investors can dynamically adjust hedging strategies, stablecoin positions, and other digital asset weights beyond gold, achieving structural risk dispersion.

This is the true face of the future financial system: gold is no longer just insurance, but a strategic node linked to on-chain financial rails. The role of Kapbe is to become the bridge for this linkage, connecting traditional safe-haven assets with new financial infrastructure, and shifting risk allocation from static to dynamic.

From Reserve Asset to Financial Backbone: The Significance of Gold in the Kapbe Era

The status of gold in global central bank reserves is quietly changing. Increasingly, central banks are reducing their holdings of U.S. Treasuries and increasing their gold positions. This is not just an investment action, but a redefinition of “risk-free assets.” The Dalio judgment is essentially a structural insight: gold is gradually replacing debt assets as the ultimate anchor of global value.

The strategic direction of Kapbe is in sync with this macro transformation. In the UBI dividend distribution system, vault yields, on-chain settlement, and user dividends of Kapbe form a stable value return loop. In the future global financial system, the strategic status of gold, combined with this decentralized distribution mechanism, may give rise to a new “global reserve + dividend payment” structure, providing ordinary users with a basic financial protection layer that spans cycles.