For a long time, investors have contended that the printing of money would undermine fiat currencies and elevate scarce assets like Bitcoin (BTC) significantly. This perspective, once considered fringe, has now reached mainstream recognition.
In a recent interview with Cointelegraph, hedge fund manager and macro expert James Lavish discussed this increasing acceptance. His core message is clear: If you don’t hold hard assets, you might be lagging behind.
“As the prices of goods rise, if you don’t possess them, then you risk being left behind.”
Lavish traces the origins of this issue back to the fiat currency era that commenced after the US abandoned the gold standard in 1971. Since that time, the money supply has soared, particularly during recent crises, leading to what he terms a structural inflation crisis. The US government continues to operate at massive deficits, and the only feasible remedy is the gradual debasement of its currency.
Now, he states, even the largest institutions are witnessing this unfold in real time. “Banks are becoming aware of this. And who else has taken notice? All the credit agencies,” Lavish remarked, noting that currently Microsoft holds a “better credit score than the US government.”
Lavish believes this new phase of liquidity and inflation could pave the way for Bitcoin to excel. Despite the risk of short-term volatility—especially if the larger market faces declines—he anticipates that the cryptocurrency will rebound more swiftly and robustly than most traditional assets.
Is it too late to gain benefits? Lavish is optimistic. The long-term adoption trajectory for Bitcoin, especially among institutional investors, has only just commenced.
Watch the complete interview on the Cointelegraph YouTube channel to learn why Wall Street is engaging in the “debasement trade” — and what implications it may have for Bitcoin in the upcoming years.
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