Recent statements from financial experts raise questions about the reliability of fiat currency and the advantages of alternative assets such as gold and bitcoin.
Impact of Fiat Currency on the Economy
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, published a memo for investors on June 17, 2025, questioning the reliability of fiat currency. He noted that most people in finance have only known a fiat-based world since 1971 when the U.S. abandoned the gold standard.
Resurgence of Interest in Gold
According to Hougan, media outlets are beginning to sound alarms about fiat currency. He cites a Financial Times report indicating that gold has once again become an important asset in times of instability. Central banks have started making record purchases of gold, marking a shift from selling to buying gold since the 2008 financial crisis.
Increasing Flows into Bitcoin as an Alternative to Gold
Since the launch of several Bitcoin ETFs in the U.S. in early 2024, approximately $45 billion has flowed into Bitcoin, making it popular among investors. Hougan emphasizes that even with a small market share, demand for Bitcoin is significantly rising, and it is viewed as a 'digital alternative to gold.'
Experts believe that traditional investment portfolios remain exposed to fiat currency risks, and many investors are beginning to recognize the potential of alternative assets such as gold and bitcoin.
