[Analysis: Global Debt Continues to Rise, Bitcoin Benefits from Declining Fiat Purchasing Power] BlockBeats News, September 26, according to Forbes, Bitcoin earlier this month briefly approached $90,000. At the same time, global debt continues to climb, and the "currency devaluation trade" surrounding the decline in fiat currency purchasing power has become one of the factors driving assets like Bitcoin and gold higher. Data from the Institute of International Finance shows that global debt increased by $10 trillion in the first half of this year, surpassing $365 trillion in total. U.S. debt has exceeded $40 trillion, with annual interest expenses rising to $1.27 trillion, surpassing defense and Medicaid spending, second only to Social Security expenditures. The institute warns that as benchmark interest rates rise, interest costs will continue to grow. Nic Puckrin, founder of Coin Bureau and cross-asset analyst, stated that the current environment is favorable for "currency devaluation assets" like Bitcoin and gold, which is part of the reason for Bitcoin's recent surge. The larger the debt levels of major economies, the more likely they are to suppress real borrowing costs and allow inflation to erode the real value of debt, thereby increasing the appeal of such trades. Analysts from The Kobeissi Letter pointed out that the purchasing power of the U.S. dollar has declined by 23% since 2020; if assets have only risen by 30% during the same period, in terms of real purchasing power, investors have essentially just broken even. U.S. inflation has remained above the Federal Reserve's 2% target for 60 consecutive months. [Original Link]