The debasement trade has gone mainstream: What it means for Bitcoin

For years, investors have argued that money printing would weaken fiat currencies and push scarce assets, such as Bitcoin (BTC), dramatically higher. That view, once dismissed as niche, has now entered the mainstream in a big way.

In a new interview with Cointelegraph, hedge fund manager and macro expert James Lavish broke down the growing acceptance of that thesis. His message is simple: If you don’t own hard assets, you’re falling behind.

“Prices of goods are inflating. And so if you don’t own them, then you’re going to be left behind.”

Lavish traces the issue back to the fiat era that began after the US left the gold standard in 1971. Since then, the money supply has exploded, especially during recent crises, creating what he describes as a structural inflation problem. The US government continues to run enormous deficits, and the only viable solution is to quietly debase its currency over time.

And now, he says, even the biggest institutions can see it happening in real time. “Banks are recognizing this. And guess who else has recognized it? All the credit agencies,” Lavish said, pointing out that now Microsoft has a “better credit score than the US government.”

Lavish says this new era of liquidity and inflation could set the stage for Bitcoin to shine. And while short-term volatility remains a risk — especially if the broader market sells off — he expects the cryptocurrency to recover faster and stronger than most traditional assets.

Is it too late to benefit? Lavish doesn’t think so. Bitcoin’s long-term adoption curve, especially among institutional investors, has only just begun.