INSUBCONTINENT EXCLUSIVE:
spiking inflation.Inflation and dollar devaluation remain the path of least resistance in the US economy, eroding the real value of cash and
bonds.Bitcoin can offer a hedge, but only if held in self-custody, as custodial platforms may not survive a lengthy phase of financial
hits harder today than when the billionaire hedge fund manager first wrote it in 2021
And for good reason: the US may be walking straight into one.The US budget deficit exceeded $6 trillion in 2024, and Elon Musk, the former
head of the Department of Government Efficiency (DOGE), saw his efforts to cut federal spending fail, with just $180 billion trimmed out of
the $2 trillion that he promised
inflationThe Big Beautiful Bill has been making headlines and breaking celebrity bromances since early May
At over 1,100 pages, the bill gathers the greatest hits of past GOP policies: extended 2017-era tax cuts, elimination of former President
It also authorizes a major expansion of immigration enforcement and raises the debt ceiling by $5 trillion.According to the nonpartisan
Congressional Budget Office (CBO), the bill would cut federal revenue by $3.67 trillion over a decade while reducing spending by only $1.25
Another nonpartisan forecaster, the Committee for a Responsible Federal Budget, added that when taking interest payments into account, the
the 2017 tax cuts showed that, even including positive economic effects, they had increased the federal deficit by almost $1.9 trillion over
Source: US Bureau of Economic AnalysisAs Harvard economist Kenneth Rogoff wrote in the Financial Times, deficits are projected to exceed 7%
his book, Ray Dalio outlined the four tools governments have in a debt crisis: austerity, defaults, redistribution, and printing money
The first three are painful and politically costly
The fourth, printing and devaluation, is by far the most likely
It also wipes out savers, bondholders, and anyone dependent on fiat
Most worry about whether their assets are going up or down in value; they rarely worry about whether their currency is going up or
inflate its way out of debt, nominal Treasurys and cash will see their real value erode
Artificially suppressed interest rates and forced bond purchases by institutions could further drive real yields into negative
territory.Bitcoin is engineered to resist this outcome
With its fixed supply and independence from government monetary policy, it offers what fiat cannot: a refuge from financial repression and
Not to mention a yield that can put bonds to shame
Bitcoin exposure is equal
ETFs and any other custodial services may simply fail to honor redemptions
So is the likelihood of a full-blown debt crisis
In that world, hard assets in self-custody will matter more than ever.This article is for general information purposes and is not intended
to be and should not be taken as legal or investment advice
