Debasement of Currency Will Propel Bitcoin to Unprecedented Heights

Major stock indexes slumped between 2.81% and 5.04% on Thursday in the wake of Wednesday's afternoon rally.

Major stock indexes slid between 2.81% and 5.04% on Thursday, continuing a decline following Wednesday's afternoon rally, while the crypto sector fell by 3.54%. Bitcoin (BTC) dropped below the $80,000 threshold, and gold rose by 2.58% over the past 24 hours, reaching $3,164 per ounce by 2:30 p.m. Eastern Time.

Strike CEO Jack Mallers expressed his strong belief in bitcoin's ability to decouple from traditional financial markets, saying that this was because bitcoin isn't tied to earnings like stocks or companies do.

"It's not about the quarter. It's not about earnings. It's not about any of that stuff. It's a different asset class. It's a scarcity asset in a world of great economic uncertainty that both investors and countries are seeking out more and more scarce reserve assets," Mallers said during a recent interview.

He said that this was an aspect of the current market downturn that bitcoiners should stay calm about and try to understand.

"Maybe try to figure out what we're living through. Let the stock market puke and figure itself out. Let them do what they've got to do. But don't get flustered by over-leveraged hedge fund managers who are losing money and panic and immediately call for bailouts. This is what's interesting about President Trump's policies. They're not flustered. They mean business. They're focused on an agenda. They're trying to help the poor American. They're trying to create factory jobs. They're trying to get people working again. They're trying to produce stuff here. They're trying to fix the trade deficit problem. They're trying to fix the government deficit problem," Mallers added.

According to Mallers, these policies will ultimately lead to significant money printing by the government in order to stimulate the economy and manage debt. This debasement of fiat currency will be highly beneficial for bitcoin. As governments print more money to handle economic challenges and manage debt, the value of fiat currency will decrease, but bitcoin, being a scarce digital asset, will see its price rise dramatically.

"They’re gonna have to print so much money—they’re gonna have to. Bitcoin is really priced with how much fiat currency is sloshing around in the world. And in order for all of this to play out and work, we have to debase our currency, we have to devalue our debt, and we have to create more fiat. It’s gonna send bitcoin nuclear," Mallers concluded.