What is Bitcoin?

Bitcoin is a digital currency created in 2009 by an individual or group under the pseudonym Satoshi Nakamoto. It was designed as a decentralized financial system, eliminating the need for intermediaries like banks or governments. Bitcoin transactions are recorded on the blockchain, a transparent and secure digital ledger that is distributed across multiple participants and verified by all users.

Bitcoin as "Hard Money" in Economic Terms

From an economic perspective, Bitcoin is considered "Hard Money" because it has a fixed supply of 21 million coins, unlike fiat currencies that governments can print endlessly. This scarcity makes Bitcoin comparable to gold, which derives its value from limited supply and high market demand.

Ray Dalio’s View on Bitcoin as Hard Money

Ray Dalio, a renowned investor and founder of Bridgewater Associates, the world’s largest hedge fund, has expressed interest in Bitcoin as a form of Hard Money. He has suggested that investors diversify their portfolios with assets like gold and Bitcoin instead of debt-based assets such as bonds.

His concerns stem from the rising debt levels in large economy countries, such as the United States and China, which could lead to future debt crises. Dalio believes that holding fixed-supply assets like gold and Bitcoin is a hedge against currency depreciation. Instead of focusing on short-term market fluctuations, he emphasizes the importance of understanding long-term global economic trends.

Conclusion: Bitcoin as an Economic Safe Haven

Bitcoin’s properties as Hard Money have attracted both investors and economists, positioning it as a tool for hedging risks and preserving wealth in times of economic uncertainty.

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Why Might Now be a Good Time to Invest in Bitcoin?

📌 Reason #1: The Repeal of SAB 121 – A Game-Changer for Financial Institutions

One of the biggest obstacles preventing financial institutions from offering Bitcoin custody services was the Staff Accounting Bulletin No. 121 (SAB 121)—a regulatory guideline enforced by the U.S. SEC under the Biden administration.

This rule required banks to record Bitcoin held for customers as both an asset and a liability on their balance sheets, leading to increased accounting risks due to Bitcoin’s price volatility. This made balance sheets appear unstable, discouraging publicly traded banks such as JPMorgan, Bank of America, and Citibank from offering Bitcoin-related services.

📢 However, this is no longer the case.

With the election of Donald Trump, SAB 121 has been repealed, allowing banks to offer Bitcoin custody services without additional accounting burdens. As a result, we can expect major U.S. banks to begin offering Bitcoin trading services in 2025.

💡 This development will make Bitcoin more accessible to retail investors, much like the approval of Bitcoin ETFs in early 2024.

🔗 Source: Blockworks

📌 Reason #2: The U.S. Government’s Strategic Bitcoin Reserve (SBR)

The idea of the U.S. holding Bitcoin as a national reserve—once unimaginable—is now becoming a possibility.

Donald Trump has proposed establishing a Strategic Bitcoin Reserve (SBR) for the United States, which has sparked speculation that the government may officially recognize Bitcoin as a reserve asset through an executive order.

📢 If the U.S. adopts Bitcoin as a reserve asset, it will signal to the world that Bitcoin has nation-state level legitimacy, potentially prompting other countries to follow suit.

Countries such as Brazil, the Czech Republic, and Russia are already exploring similar strategies.

💡 If the U.S. government starts holding Bitcoin officially, a "domino effect" could occur, driving more nations to accumulate Bitcoin, increasing demand, and pushing prices higher.

🔗 Source: https://bit.ly/4goEdfD

📌 Reason #3: Rising USD Liquidity – A Key Driver for Bitcoin’s Price

💰 Bitcoin’s price has a strong correlation with the M2 Money Supply.

One of the key factors driving the price of scarce assets (Hard Assets) like Bitcoin is the increase in money supply (M2).

In 2024, the U.S. M2 Money Supply grew by 3.6%, and 2025 is expected to see continued expansion due to rising government debt and ongoing monetary easing policies.

📢 As the supply of U.S. dollars increases, the price of fixed-supply assets like Bitcoin naturally rises due to supply-demand dynamics.

🔹 Bitcoin has a hard cap of 21 million coins, while USD can be printed indefinitely.
🔹 The expansion of USD supply historically correlates with new all-time highs for both Bitcoin and U.S. stock indices.

💡 Investing in Bitcoin is an effective hedge against inflation and a reliable store of value for the long term.

🔗 Source: https://bit.ly/3Ek8vmv

🔥 Conclusion: Now Might Be Bitcoin’s Golden Era

✅ SAB 121 has been repealed – Banks and financial institutions can now offer Bitcoin services freely.
✅ The U.S. government is considering a Strategic Bitcoin Reserve – A potential domino effect could lead other nations to follow.
✅ Rising USD liquidity – Increasing money supply will likely drive Bitcoin’s price higher in the long run.

📢 These factors make 2025 a potentially groundbreaking year for Bitcoin investment. 🚀🔥

Disclaimer: Cryptocurrency and digital token involve high risks; investors may lose all investment money and should study information carefully and make investments according to their own risk profile.