Bitcoin as a Hedge Against Fiat Debasement and Profligate Spending
The investment case for bitcoin (BTC) remains compelling in the current global macro landscape, according to a research report by Coinbase. The report highlights the changing factors affecting inflation due to the emergence of new technologies like generative artificial intelligence (AI), which could lead to a new era of loose monetary policy. With increased government spending in the US and the potential rise in the cost of servicing the country’s debt, bitcoin is seen as a hedge against fiat debasement and profligate spending.
Main Breakdowns:
- Expansionary fiscal and monetary policies should support bitcoin long term as a hedge against fiat debasement and profligate spending.
- Artificial intelligence is expected to have a major impact on the global economy and is considered a significant investment theme.
- Bitcoin is a financially innovative instrument that is globally accessible, decentralized, and has a fixed supply.
- Cryptocurrency allocations can provide diversification and exposure to unique sources of risk.
- The secular case for bitcoin and crypto adoption remains intact, indicating a long-term trend.
Hot Take: Bitcoin’s unique qualities and its potential as a hedge against fiat debasement make it an attractive investment option in a changing global economic landscape.
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