Bitcoin’s Role as a Hedge Against Currency Devaluation Solidifies, Says Economist Alex Krüger

Economist Alex Krüger believes Bitcoin (BTC) is becoming a vital asset to counteract the devaluation of fiat currency and fiscal policy uncertainties. In a recent interview, Krüger emphasized that Bitcoin serves as “a hedge against the tail risk of central banks collapsing and the devaluation of the dollar.” This need for a hedge, he notes, can arise suddenly and significantly impact Bitcoin’s future role.

Krüger highlights the growing worries about the increasing US national debt, an issue that the Bitcoin community has long discussed. He points out that even Federal Reserve Chair Jerome Powell has acknowledged the unsustainable fiscal path of the US. Krüger explains, “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.”

Bitcoin’s Increasing Adoption

The economist elaborates on Bitcoin’s emerging role in broader macroeconomic and traditional market circles. He says, “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.” Krüger identifies three critical aspects of Bitcoin’s value: its potential as a reserve asset, its function as a store of value, and its adoption as digital gold. He asserts that Bitcoin is increasingly seen as a hedge against uncontrolled debt and the potential collapse of the dollar.

At the time of writing, Bitcoin is trading at $6g,530, reflecting its drowning position in the market.