Roundup: All Roads Lead to Bitcoin

All Roads Lead to Bitcoin

This week’s financial gyrations continue to underscore the same underlying tension: inflation remains a stubborn concern, bond yields are spiking as a result, and long-term U.S. debt finds fewer and fewer willing buyers. While this cycle of “debt is piling up, and the system must eventually inject liquidity by printing more money” is nothing new, it’s now more glaringly evident that central banks have few viable exit ramps. Equities continue to fluctuate in response, and—unsurprisingly—bitcoin is momentarily moving in tandem with other risk assets.

As we’ve previously discussed, bitcoin isn’t a “risk-on” asset in our view; it merely trades like one in the short term because swaths of the traditional market lump it in with tech. From a high-level perspective, however, the inevitability of global fiat debasement is precisely what underpins bitcoin’s long-term value proposition. Said another way: if central banks cut rates and print, bullish for bitcoin; if they hold rates higher for longer and eventually print anyway, still bullish for bitcoin.

At current prices in the mid-ninety thousands, bitcoin’s underlying thesis is as robust as ever: it’s a finite, digital form of base money competing for capital flows against every other store-of-value asset on the planet. Indeed, the persistent erosion of fiat currencies across the board practically begs for a non-sovereign store-of-value. For those with a long-term horizon, five figure bitcoin represents a fleeting opportunity to accumulate satoshis at a discount.