Financial expert Luke Gromen believes the rise of companies holding Bitcoin as a treasury asset is a smart reaction to the US government’s weakening dollar. He argues that this is a logical response to a massive financial bubble that’s been repeatedly shifted around the economy.
The Bubble’s Journey
Gromen explains that the bubble started in the stock market, then moved to the banking and housing sectors, eventually landing in the Treasury market. The US government, to avoid default or a major economic downturn, is essentially devaluing its debt through inflation.
Why Bitcoin?
Gromen says that as investors realize the US government’s strategy, it’s becoming increasingly clear that holding Bitcoin, with its fixed supply, is a way to protect against this devaluation. He highlights the appeal of Bitcoin as a hedge against inflation, especially when compared to traditional assets.
The Logic of Bitcoin Treasuries
Gromen emphasizes that the growing adoption of Bitcoin by companies as a treasury asset is a rational response to the current economic climate. He believes that as more people understand the implications of the US government’s actions, this trend will only accelerate. He even suggests that corporate bonds might become more attractive than US Treasury bonds due to the inflation risk associated with the latter.
The Bottom Line
With a US national debt nearing $37 trillion, Gromen sees the shift towards Bitcoin as a logical safeguard against the potential devaluation of the dollar. He argues that companies are simply making smart financial decisions in a challenging economic environment.