Across the world, central banks traditionally rely on gold as a reliable reserve asset. Nonetheless, a number of nations, including the United States, have started adding Bitcoin to their holdings. Bitcoin is a potent inflation hedge because of its intrinsic scarcity and 21 million coin cap. In contrast to fiat currencies, which can be printed indefinitely, Bitcoin maintains a transparent and limited supply model.
With excessive money printing and escalating national debt becoming the norm, many governments face the danger of currency devaluation. Bitcoin presents a digital solution to this challenge. Its decentralized framework and limited supply prevent it from being weakened by traditional monetary strategies. As inflation climbs, nations are increasingly viewing Bitcoin as a tool to preserve the worth of their reserve assets.
