1. What is the Debasement Trade?
The Debasement Trade refers to the investment trend where investors move money into assets like Bitcoin, Gold, and ETFs to protect against currency devaluation and inflation caused by excessive money printing or government debt.
2. Why is Bitcoin linked to the Debasement Trade?
Bitcoin’s fixed supply of 21 million coins and independence from central banks make it an attractive hedge against fiat currency debasement, much like how gold functions as a traditional store of value.
3. How are ETFs influencing Bitcoin’s role in the Debasement Trade?
The launch of spot Bitcoin ETFs in 2025 has made investing easier and more regulated, leading to record inflows and helping institutions participate in the debasement hedge narrative.
4. Is Bitcoin more effective than Gold as a hedge?
While Bitcoin offers higher potential returns and global accessibility, Gold remains more stable and less volatile. Many investors now use both to balance risk in their debasement trade strategy.
5. What risks are involved in investing in Bitcoin for the Debasement Trade?
Bitcoin faces price volatility, regulatory uncertainty, and market liquidity risks. Investors must manage exposure carefully and view it as a long-term hedge rather than a short-term profit tool.
