According to @balajis, fiat loses value through three vectors—inflation, freezes, and seizures—while hard money avoids these risks, underscoring custody and policy risk for capital allocators (Source: @balajis on X, Sep 2, 2025). For traders, this reinforces a hard-money risk framework and may tilt positioning toward assets and rails perceived to have lower dilution and counterparty exposure during macro stress or capital controls episodes (Source: @balajis on X, Sep 2, 2025).

According to Dan Held on Twitter, the finite supply of Bitcoin, capped at 21 million, contrasts sharply with the theoretically unlimited issuance of fiat currencies. This scarcity-driven narrative continues to be a core driver for Bitcoin demand among traders seeking assets with a fixed supply, especially as inflationary pressures persist in global fiat systems (source: Dan Held on Twitter, May 26, 2025). This dynamic reinforces Bitcoin’s appeal as a store of value and could influence trading strategies focused on long-term accumulation and portfolio diversification in the cryptocurrency market.