Deflation, Deflation, Deflation

It's more important than you think

The US hit it’s debt limit this week. Again.

It happens every few years, triggering political showdowns and hyperbolic headline about how the country cannot default on its debt. And there’s always a fair amount of handwringing.

The fact is—the US cannot continue to take on these debts. It cannot. Sooner or later, these bills will come due, and when they do, it won’t be pretty. In fact, the consequences get uglier and uglier each time the government takes on more debt. Taxation, inflation, and severe economic pain will eventually be part of the roadmap to pay it all down.

These are facts. It may not happen today, or tomorrow, but it will happen.

Bitcoin and (some) altcoins are hedges against this future. To be clear, Bitcoin was set up to be a specific kind of deflationary asset. It’s not easy to obtain, and after the last Bitcoin is mined there will never be anymore created. That means that Bitcoin will become more valuable over time, not less. If you’re facing a world of exploding credit and bloated national debt (we are), then this is an asset to own.

Perhaps it is no surprise that Bitcoin rose over 9% just in this last week…

The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.