As Trump’s landmark bill heads for Senate approval, fears of rising inflation, surging debt, and dollar devaluation intensify—potentially making Bitcoin the last line of financial defense.
Dubbed the “One Big Beautiful Bill,” President Trump’s latest legislative push is a political juggernaut—and a fiscal time bomb. The bill proposes to extend 2017-era tax cuts, scrap green energy incentives, and tighten social safety nets. It also authorizes a sweeping $5 trillion increase to the debt ceiling.
The nonpartisan Congressional Budget Office estimates the bill will add $2.4 trillion to the national debt over a decade—rising to as much as $5 trillion if temporary cuts are made permanent. With federal debt nearing $37 trillion and 2024’s deficit surpassing $6 trillion, the US is entering uncharted financial territory.
Inflation and Dollar Devaluation Becoming Inevitable
“Devaluations typically occur fairly abruptly during debt crises,” wrote billionaire hedge fund manager Ray Dalio in The Changing World Order. That sentiment now feels prophetic. With the Federal Reserve holding rates at 4.5% and bond yields stagnating, the only way out may be through monetary debasement.
Economists like Harvard’s Kenneth Rogoff warn deficits will continue exceeding 7% of GDP throughout Trump’s term. Growing the economy out of this crisis is increasingly implausible—Q1 2025 growth was -0.3%, with only modest Q2 projections. In this environment, inflation and currency erosion appear to be the only politically viable tools left.
Bitcoin: The Hedge You Hold in Your Hands
As the dollar faces mounting pressure, Bitcoin’s core value proposition—scarcity and decentralization—comes into focus. Immune to monetary policy and supply manipulation, Bitcoin may act as a powerful hedge against fiat failure.
Also Read: Trump Opens 401(k)s to Bitcoin: Analysts Say BTC Demand Shock Could Surpass ETF Inflows
But experts stress how you hold Bitcoin matters. In a debt-driven crisis, custodial platforms—ETFs, exchanges, and brokerages—could freeze withdrawals or fail outright. The solution? Self-custody. Owning your private keys ensures control, even in the face of regulatory overreach or financial repression.
With Congress leaning toward approval of Trump’s bill, the US may be on the verge of a fiscal reckoning. In such a landscape, Bitcoin isn’t just a speculative asset—it could be a lifeline.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
