Bitcoin: The Emergent Asset Class Has Arrived
Part III: The Macro Case for Bitcoin
Download Onramp’s full report here…
Penned by Onramp’s Head of Global Macro, Mark Connors, this report examines the current global macroeconomic environment, highlighting parallels with historical shifts in monetary regimes and advocating for bitcoin as a viable solution to systemic financial challenges.
In the aftermath of unprecedented fiscal responses to the COVID-19 pandemic, many governments now face debt-to-GDP ratios exceeding 100% and deficits typically seen only during wartime. This era of Fiscal Dominance, characterized by escalating debt and monetary debasement, has eroded the traditional value proposition of safe-haven assets like the U.S. 10-Year Treasury note.
Demographic shifts—such as declining birth rates and an aging population—intensify fiscal pressures by reducing the taxpayer base needed to support entitlement programs. The Federal Reserve’s expanded role in credit creation has increased money supply volatility, further destabilizing traditional financial systems. Historical precedents emphasize the importance of sound money during periods of economic upheaval.
Bitcoin emerges as a compelling asset for wealth preservation due to its fixed supply, decentralized network, and similarities to gold. Operating independently of central bank policies, bitcoin offers a hedge against systemic risks and monetary debasement.
This report highlights bitcoin’s decreasing volatility, growing adoption, and its potential to maintain buying power within investment portfolios. As traditional financial systems grapple with terminal challenges, there is an urgent need to consider bitcoin’s role in a diversified investment strategy aimed at safeguarding wealth amid ongoing fiscal and monetary uncertainties.
Visit the Onramp Institutional landing page to explore how our innovative solutions can empower you or your firm to integrate bitcoin into your investment strategies.
In case you missed the first two parts of this series, download here:
Part I: Bitcoin Boosts Returns & Dampens Volatility in Traditional Portfolios
Part II: Parallel Paths of Two Significant Disruptors to Traditional Finance
Onramp provides bitcoin financial services built on multi-institution custody.
To learn more about our approach to bitcoin custody and determine if our products and solutions are right for you, please reach out to schedule a consultation with our team.