Commentators indicate that financial institutions are rapidly awakening to "debasement trading," which may bring significant benefits for assets like gold and Bitcoin.
Entrepreneur Anthony Pompliano stated in a podcast on Thursday that institutions now have a new investment concept—"debasement trading," which will be key to protecting themselves.
He added that this is precisely what gold supporters and Bitcoin advocates have been discussing for years. Now, institutions are beginning to realize that "no one is going to stop printing money."
Debasement trading is an investment strategy based on the widespread expectation that fiat currencies will lose purchasing power over time due to central bank expansionary monetary policies.
Investors will allocate funds to assets like gold (which has risen 50% so far this year) and Bitcoin, which can preserve and increase value when traditional currencies depreciate.
Jeff Park, Chief Investment Officer of ProCap BTC, mentioned in his conversation with Pompliano, "We have always anticipated that private wealth management institutions and financial advisors would incorporate Bitcoin into their portfolios."
Matt Hougan, Chief Investment Officer of Bitwise, shared his views on debasement trading on Thursday, describing it as "dark matter in the financial realm. You can't really touch it, but it affects everything."
Brian Cubellis, Chief Strategy Officer of Onramp Bitcoin, commented, "People's awareness of 'debasement trading' is accelerating for a simple reason: persistent deficits, accumulating debt, and loose monetary policies leading to declining real yields."
Enrique Ho, Chief Financial Officer of Blink Wallet, stated on the X platform that Bitcoin is not just digital gold.
He said, "Bitcoin itself is designed to be anti-debasement: fixed supply, transparent issuance mechanism, and a trustless verification process." Furthermore, he believes it is the purest form of capital preservation in a world where currency pricing is being reshaped.
The US Dollar Index (DXY) has clearly reflected the trend of dollar depreciation, measuring the dollar's performance against a basket of currencies.
According to TradingView data, the dollar index has fallen about 12% this year, dropping from a January high of 110 to a three-year low of 96.3 in mid-September, with a slight rebound in October.
Related: BNB Chain meme coins plummet over 30%: Has Binance's "Meme Rush" come to an end?
Original article: “Executives admit: ‘Debasement trading’ has become a foregone conclusion, traditional finance knows it well”
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