Crypto Assets are the best way to preserve value in the current economic environment.

The current global economy is at a turning point in the inflation cycle, and holding Crypto Assets has become the best choice for preserving value. Historically, there have been three major economic cycles since the 20th century: the peaceful rise cycle in the United States from 1933 to 1980, the global dominance cycle of the United States from 1980 to 2008, and the localization cycle from 2008 to the present.

In different cycles, investors should adopt different strategies:

• During inflationary periods, one should hold hard assets like gold and give up stocks and bonds.
• In a deflationary period, one should hold stocks and give up gold and bonds.
• Government bonds are generally not suitable for long-term holding.

We are currently in a new round of inflation cycle, and cryptocurrencies like Bitcoin are outperforming traditional assets. Compared to gold, Bitcoin has higher liquidity and convenience, making it a better choice to combat the depreciation of fiat currency.

Recently, the large-scale fiscal expenditure and loose monetary policy of the U.S. government indicate that the inflation environment will persist. The budget deficit for the fiscal year 2024 is expected to reach a historic high of $1.915 trillion, while GDP growth remains around 2.7%. In this environment, holding crypto assets is the best way to cope with inflation and preserve value.

Investors should closely monitor the credit creation of commercial banks and the fiscal deficit situation, rather than only focusing on the central bank's balance sheet. In the current economic cycle, Crypto Assets are likely to continue their advantageous position as a means of value storage.