Bitcoin's Fixed Supply Protects Against Currency Debasement During Energy Crises
Holding an asset with a fixed issuance schedule protects a portfolio from being debased by a central bank's emergency response. This protection comes as the Strait of Hormuz is closed, creating the largest oil supply disruption in modern history. Energy costs spike when the Strait is closed, which increases inflation because energy costs are integrated into most goods and services. To absorb ongoing economic damage, governments often expand the money supply, which dilutes the purchasing power of existing dollars. The Bitcoin protocol caps the total supply at 21 million coins. No government can print more of the asset, and no act of Congress can change the halving schedule that determines production. This structural scarcity enables Bitcoin to retain its purchasing power during inflation.
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