The Bull Case for Bitcoin: Why Fiat Is Designed to Lose and BTC Isn’t

Why This Matters

Because holding fiat is a guaranteed slow bleed.
Not maybe. Not “if mismanaged”. By design.

If you earn, save, and think in INR (as most Indians do), you are hit twice:

INR is structurally weak against USD
USD itself is structurally weak against scarce assets

If you don’t understand this, you are not “playing safe”.
You are just unaware.

What Is Actually Happening

1. Money Is Not Wealth

First principle: money is only a claim on goods and services.

If the supply of money increases faster than real output, each unit buys less.

That is inflation. Everything else is narrative.

2. Fiat Currencies Must Inflate to Survive

Governments cannot stop printing because they must fund:

Welfare and subsidies
Infrastructure and development
Bailouts and debt servicing
Political survival

Stopping money creation leads to recession and unrest.
Inflation is not a mistake. It is the system.

3. USD Is Inflating. INR Is Worse.

Let’s remove emotion and look at structure.

USD:

Explosive money supply growth since 2008 and COVID
Persistent fiscal deficits
Purchasing power erosion every year

The “strong dollar” is simply the least weak fiat.

INR:

Chronic trade deficit
Energy imports priced in USD
Capital flows toward stronger currencies
RBI forced to balance growth and currency stability

Result:
An Indian holding INR loses purchasing power faster than an American holding USD.

This is not opinion. This is arithmetic.

4. The Currency Hierarchy

From weakest to strongest:

Holding INR cash
Holding USD cash
Holding scarce assets

Remaining at level one is not safety. It is guaranteed long-term loss.

5. Cash Printing and Liquidity Effects

Newly printed money:

Enters banks and institutions first
Pushes up asset prices before wages adjust
Penalizes savers and rewards asset holders

This is the Cantillon Effect.

If you feel poorer despite working harder,
it is not personal failure.
It is structural design.

6. Fake Currency: Does It Matter?

Be precise.

Counterfeit currency does increase effective supply
But at a negligible scale compared to legal printing
It does not drive macro inflation

Legal money creation alone is sufficient to destroy purchasing power.

Why Bitcoin Is Fundamentally Different

1. Hard-Capped Supply

21 million coins
No policy meetings
No emergency stimulus
No political overrides

Scarcity is enforced by code, not promises.

2. Fixed Supply, Expanding Demand

Demand drivers:

Fiat debasement
Capital controls
Institutional participation
Generational distrust of legacy systems

Supply:

Fixed
Halving every four years
Increasingly illiquid due to long-term holders

This creates asymmetric price dynamics.

3. Bitcoin Does Not Need to Replace Fiat

Bitcoin does not need to be:

A daily currency
A payments rail
A banking system

It only needs to succeed as a superior store of value.

Gold did this for 5,000 years with worse properties.

4. Policy Constraints Create Asymmetry

Fiat requires:

Inflation
Control
Trust

Bitcoin requires:

Nothing
No permission
No trust

Every policy failure of fiat is free marketing for Bitcoin.

How This Plays Out

Governments increase money supply
Fiat purchasing power declines
Citizens seek protection
Capital moves to scarce assets
Bitcoin absorbs marginal demand
Price reprices non-linearly

Bitcoin does not grow smoothly.
It moves in violent repricing cycles.

A Non-Conventional but Honest View

Bitcoin is not guaranteed to win.

But fiat is guaranteed to lose.

That asymmetry alone makes Bitcoin rational, not speculative.

If your objections are:

“Governments will ban it”
“It is volatile”
“It has no intrinsic value”

You are arguing from authority and comfort, not economics.

Final Summary

Wealth is preserved by scarcity, not trust
Fiat is infinite by necessity
INR holders lose faster than USD holders
Bitcoin is engineered scarcity in a fiat world
Fixed supply + rising demand leads to parabolic repricing

Holding fiat is not conservative.
It is playing a game designed for you to lose.