**[Forbes: Bitcoin "Debasement Trade" Narrative Heats Up, Trump Says Moderate Inflation Could Quickly Reduce $40 Trillion Debt]** BlockBeats News, October 3 — According to Forbes, U.S. President Donald Trump stated in an interview with *Time* magazine that "a certain level of inflation could also very quickly pay off debt," sparking market discussions about the U.S. potentially reducing its real debt burden through nominal economic growth and inflation. The report highlighted that U.S. federal debt has exceeded $40 trillion, doubling over the past decade, while interest expenses have continued to rise following Federal Reserve rate hikes. Trump, U.S. Treasury Secretary Scott Bessent, and Elon Musk have all previously emphasized that technology-driven economic growth is a key solution to alleviating debt pressures. Meanwhile, Bitcoin's price has risen approximately 300% from its 2023 low but remains about 30% below its all-time high of $126,000 set in 2025. Recently, the market has refocused on the "debasement trade," where investors hedge against the declining purchasing power of fiat currencies by allocating assets like gold and Bitcoin. Forbes cited Bitfire Research's perspective, stating that in the long term, Bitcoin's logic as a tool to hedge against fiat currency debasement remains intact, though its short-term price may still be influenced by interest rate policies and U.S. dollar liquidity. Additionally, the Federal Reserve's preferred inflation metric, the PCE data, shows that U.S. prices rose 3.4% year-over-year, still above the Fed's 2% target. The market estimates a roughly 70% probability that the Federal Reserve will keep interest rates unchanged at its late October meeting. [Original Link]