The global economy is at an inflation turning point, and Crypto Assets have become the best way to preserve value.

Some believe that the crypto assets bull market has ended, and that launching tokens now is too late, questioning why Bitcoin has not risen in sync with tech stocks. However, these individuals also acknowledge that the world is shifting from a unipolar dominance by the United States to a multipolar landscape, that government deficits need to be funded through financial repression, and that World War III has already begun and will lead to inflation.

These seemingly contradictory viewpoints actually confirm that we are at a turning point - shifting from one geopolitical and monetary arrangement to another. While it is impossible to predict which country will dominate the future, the general trend has already become apparent.

Historically, there have been two periods: the local period and the global period. In the local period, governments impose financial repression on savers to finance wars; in the global period, financial regulations are relaxed to promote global trade. The local period is usually accompanied by inflation, while the global period is characterized by deflation.

Since the Great Depression of the 1930s, it can be divided into three main cycles:

1. 1933-1980: The Peaceful Rise Cycle of the United States
2. 1980-2008: The Peak Period of Globalization Dominated by the United States
3. From 2008 to present: The localization cycle of the confrontation between the United States and emerging economies.

In the current cycle, governments around the world are once again suppressing domestic savers to finance wars and maintain stability. The problem with quantitative easing policies is that the market directs cheap credit towards non-productive areas, such as stock buybacks, rather than enhancing the productive capacity of the real economy. This has led to a decline in U.S. manufacturing, which is even unable to produce enough military supplies.

In the future, the way Western countries allocate credit may become more similar to that of China, Japan, and South Korea, with the government directly guiding banks to lend to specific industries. This will result in capital returns being lower than nominal growth and inflation rates. In this scenario, off-system assets like Bitcoin will become the best option for preserving value.

The U.S. budget deficit is expected to soar to $1.915 trillion in fiscal year 2024, reaching its highest level outside of the pandemic period. At the same time, the Atlanta Fed predicts a 2.7% growth in real GDP in the third quarter of 2024. This indicates that fiscal and monetary conditions will remain loose, and holding Crypto Assets is the best way to cope with the impending fiat currency depreciation.