Following the US national debt exceeding $40 trillion, some investors are reportedly turning to assets other than the dollar. In an interview, Michael Bucella, co-founder of Neoclassic Capital, stated that gold, the Swiss franc, and Bitcoin ($BTC) are among the preferred assets seeking to hedge against the risk of currency depreciation.
According to Bucella, the rapid increase in US debt is causing some investors to diversify their portfolios with assets other than the dollar. Gold, the Swiss franc, and Bitcoin are all being considered within this approach.
Bucella also noted that the increasing use of Bitcoin-backed loan products in the US is creating new financing opportunities for $BTC holders. These products allow Bitcoin owners to obtain liquidity without directly selling their assets.
In Bitcoin-backed lending mechanisms, investors can obtain loans by using their $BTC as collateral. This allows investors to protect their Bitcoin positions while meeting their cash needs. However, such products carry risks such as requiring additional collateral or liquidation if the collateral value decreases.
Bucella also pointed out that Bitcoin still retains its risky asset status. According to him, unlike traditional safe-haven assets such as gold, $BTC remains sensitive to global economic developments and macroeconomic conditions.
The US debt exceeding $40 trillion has reignited market debates about public finances and the future value of the dollar, while some investors are turning to alternative assets. Bitcoin’s position in this process continues to be shaped by both institutional demand and macroeconomic developments.
*This is not investment advice.