Solving The Dollar Debasement Conundrum

By Don Friedman | CEO, Digital Assets Council of Financial Professionals
May 7, 2025

You probably know that the code written into bitcoin allows for a maximum of 21 million coins in total supply. But did you know that, of the 19 million bitcoins that have been mined to date, an estimated three to four million of them have been lost forever? This significantly reduces the supply of an already limited-supply asset!

Coins are released about every 10 minutes to the first to solve a cryptographic puzzle, and about every four years, the number of coins released at each interval is cut in half (referred to as a halving). What all this means is that bitcoin represents the power of a fixed supply – reinforcing its deflationary, scarce asset appeal.

So why is this important to you as a financial advisor?

Well:

• 560MM people worldwide own crypto, including 65MM Americans
• More than 80% of clients expect their advisor to be crypto knowledgeable
• More than 60% of clients would switch advisors to get crypto advice

Yeah, I know, you’re going to tell me your clients don’t own crypto. Parents also believe their teenagers don’t drink beer. Yeah, they do – they just haven’t told you.

I’m not trying to persuade you to add bitcoin to client portfolios. Rather, I’m here to help you get educated on crypto so you can better serve your clients. That’s how you gain AUM and referrals. And if you’re hesitant to recommend bitcoin, answer this question: Do you believe in MPT?

You almost certainly do. All advisors know that a diversified portfolio offers lower volatility and higher long-term returns. And the key is to own volatile assets and rebalance them periodically. So, if you’re like most advisors, you want to own assets that are protected from dollar debasement. After all, the federal government continues to print money, increasing the deficit and federal debt. This is why Goldman Sachs says a further decline in the dollar, resulting from the tariff policies, recession fears and reduced interest in U.S. assets, could lead to lower equity and treasury prices.

Connect the two (bitcoin & dollar debasement) and you get a lightbulb moment. Bitcoin is part of the solution to the never-ending madness of governments printing money. Need an example? Look no further back than Covid. When the Fed expanded its balance sheet, bitcoin’s price rose. So, when you talk with clients, always remember to factor in their investment time horizon. Bitcoin is a compelling asset to consider in an era of dollar debasement.