Economist Alex Krüger says that Bitcoin (BTC) is solidifying its role as an asset used to hedge against the debasement of fiat currency and fiscal policy uncertainty.
In a new interview, Krüger says the Bitcoin is “a hedge against the tail risk of central banks collapsing and the devaluation of the dollar.”
[adinserter block="1"]He says the need for a hedge against currency devaluation often appears very suddenly and could unfold for Bitcoin in the future.
“So if ever we get to the point where we are very concerned about the value of the dollar and or the sustainability of debt, which is already happening, you want to be long Bitcoin and you want as much Bitcoin as possible for as long as you’re not screwing up your portfolio.”
Krüger says there is increasing concern about the rapidly increasing US national debt, an issue long raised by the Bitcoin community.
He notes that even Federal Reserve Chair Jerome Powell has said that the US is not on a sustainable fiscal path.
“We’re at the very beginning, but this is happening – this view on Bitcoin precisely as a hedge towards that in broader macro/ traditional markets circles…
So those three things: potential reserve asset, store value and the increasing adoption of Bitcoin as digital gold and Bitcoin as a hedge against debt out of control and the dollar imploding.”
At time of writing, BTC is trading at $69,362.
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