Why You Must Own Bitcoin
By Shayne Heffernan
Bitcoin isn’t just a speculative asset; it’s a hedge against a financial system creaking under the weight of reckless government spending, a fading U.S. dollar, and the slow bleed of fiat currencies. As the world’s first decentralized digital currency, Bitcoin offers a way out of a trap where traditional money is losing its grip. With U.S. debt piling up, the dollar’s global dominance slipping, and fiat’s value eroding, owning Bitcoin is less a gamble and more a necessity for anyone looking to protect their wealth.
U.S. Government Spending: A Debt Spiral
The U.S. government’s spending is out of control, and it’s not slowing down. In 2024, federal debt hit $34.8 trillion, or 120% of GDP, with projections from the Congressional Budget Office (CBO) estimating it’ll climb to $54 trillion by 2034. Annual deficits are running at $1.7 trillion, driven by entitlement programs like Social Security and Medicare, plus rising interest payments on the debt—$892 billion in 2024 alone, nearly matching defense spending. To keep the lights on, the Treasury leans on borrowing and money printing, with the Federal Reserve’s balance sheet still hovering around $7.4 trillion after years of quantitative easing.
This flood of new dollars devalues the currency, stoking inflation that’s been eating away at purchasing power. Since 2020, consumer prices have risen 20%, per the Bureau of Labor Statistics, while real wages have barely budged. Bitcoin, capped at 21 million coins, sidesteps this mess. Its fixed supply—unlike the endless printing of fiat—makes it a store of value that doesn’t bend to government overspending. When the U.S. keeps borrowing to cover its bills, Bitcoin’s scarcity becomes a shield against the fallout.
The Dollar’s Declining Grip
The U.S. dollar’s reign as the world’s reserve currency is fraying. In 2000, 71% of global foreign exchange reserves were in dollars; by 2024, that’s down to 58%, according to the International Monetary Fund. Countries like China and India are pushing for alternatives, with 25% of global trade now settled in non-dollar currencies, up from 15% a decade ago. BRICS nations are experimenting with gold-backed or local-currency systems, and even Saudi Arabia’s recent shift to accept yuan for oil signals a crack in the petrodollar’s foundation.
A weaker dollar means higher import costs and more inflation for Americans, eroding savings and investments tied to fiat. Bitcoin, borderless and untethered to any government, offers a way to opt out. It’s a global asset that doesn’t care about U.S. monetary policy or trade deals. As the dollar’s clout fades—evidenced by its 15% drop against a basket of currencies since 2015, per the DXY index—Bitcoin’s decentralized nature makes it a hedge against a currency losing its throne.
Fiat’s Slow Erosion
Fiat currencies, backed by nothing but trust in governments, are bleeding value over time. Since the U.S. abandoned the gold standard in 1971, the dollar has lost 85% of its purchasing power, per CPI data. A dollar in 1971 buys just 15 cents worth of goods today. This isn’t unique to the U.S.—the euro, yen, and pound have similar stories. Central banks’ low-interest policies and money printing have only accelerated the decay, with global M2 money supply up 40% since 2019, per World Bank figures.
Bitcoin’s design fights this erosion. Its halving mechanism, cutting mining rewards every four years, tightens supply—unlike fiat, which governments can inflate at will. Since its inception, Bitcoin’s annualized return has averaged 60%, dwarfing stocks (10%) and gold (2%). While volatile, its long-term trajectory reflects growing distrust in fiat. With 19.7 million Bitcoins mined by 2025 and only 1.3 million left to mine by 2140, scarcity drives its value proposition. As fiat fades, Bitcoin’s fixed rules offer a lifeline.
Why Bitcoin Matters Now
Bitcoin isn’t perfect—it’s volatile, and adoption’s still growing—but it’s a direct response to a broken system. U.S. spending is a runaway train, with $1 trillion in interest payments looming by 2028, per the CBO. The dollar’s global share is shrinking, with 30% of central banks planning to diversify reserves by 2030, per UBS. And fiat’s decline is relentless, with inflation averaging 3% annually since 1980, quietly gutting savings. Bitcoin’s not just an investment; it’s a vote against a financial order that’s running on fumes. Owning it means taking control in a world where governments and central banks keep moving the goalposts.
