What the ‘Debasement Trade’ Means for Bitcoin

Core Viewpoint - Bitcoin's recent price movements are reviving the "debasement trade," which involves investing in scarce assets as a hedge against the dilution of fiat currencies [1] Group 1: Bitcoin as a Hedge - Bitcoin is viewed by advocates as a protection against inflation and government overspending, similar to gold [2][3] - The fixed supply of Bitcoin at 21 million and its halving events are designed to create scarcity, making it a trusted store of value [4] - Bitcoin's market cap currently stands at $2.4 trillion, with expectations for continued growth as fiat currencies are debased [4] Group 2: Comparison with Real Assets - Bitcoin is likened to real assets, which have appreciated faster than inflation rates, benefiting from the debasement of fiat currencies [4] - The ongoing money printing by US and G7 governments is expected to sustain the rise of Bitcoin and other real assets, with any corrections seen as temporary [4]