Recently, the numbers from the U.S. Treasury are a bit scary: this year's deficit is nearly $2 trillion, and at the same time, it needs to issue trillions of new debt to pay off old debt.
It's like a person maxed out their credit card, and the repayment date has arrived; the only way is to apply for a new card with a higher limit to pay off the debt. The problem arises: what if no one is willing to issue him a card?
When old methods meet new problems
In the past, U.S. bonds were easy to sell, with central banks around the world eager to buy. But now the situation has quietly changed:
· International buyers are becoming more cautious
· The U.S. banking system has become the main buyer
· This money circulates in the financial system, driving up the prices of various assets
What worries people the most is: Will all this newly printed money ultimately flow to supermarkets and gas stations, causing prices to soar again?
If inflation really comes back, the Federal Reserve will find it hard to confidently cut interest rates. This could bring double pressure on traditional portfolios—such as stocks and bonds.
BTC: From 'Edge Options' to 'New Dialog'
In this context, interesting things have happened. Bitcoin, once seen by many as a 'digital toy', is now being discussed more seriously.
Why is it different now?
1. It has a 'hard cap': The total supply of Bitcoin will always be 21 million coins, a rule written in the program. In the context of increasing money supply in various countries, this scarcity takes on new significance.
2. It is 'entering the mainstream': Even the U.S. Treasury has started to regard Bitcoin as a strategic asset reserve. This signal is important—it indicates that it is moving from the margins to mainstream visibility.
3. The regulatory framework is improving: major global markets are establishing clearer rules for crypto assets. The clearer the road rules, the more compliant vehicles will be on the road.
The market is rethinking
Investors are beginning to ask themselves a new question: If the correlation of traditional assets continues to rise (moving up and down together), should they allocate some differently performing assets to balance risk?
The correlation of Bitcoin's price with US stocks has decreased in recent years, giving it potential as a diversification tool. Of course, this does not mean it is a 'safe haven'—its volatility remains significant.
Stay alert, stay open
For ordinary investors, the key is not to blindly follow the trend, but to understand the changes:
· The global monetary environment is undergoing structural changes
· The logic of asset allocation may need updating
· New asset classes are worth learning about, even if only a small allocation
The most dangerous thing is not trying new things, but searching for new continents with old maps. As fiscal deficits and debt continue to become the new normal, perhaps we need a new perspective on value and wealth.