Bitcoin Is About to Absorb a Historic Rotation
TL;DR
Jordi Visser argues that AI-driven deflation is triggering a historic deleveraging of the $800 trillion fiat system, causing capital to rotate from software stocks into scarce assets like Bitcoin as the traditional liquidity correlation between tech and crypto breaks down.
🤖 Deflation Destroying Software 2 insights
AI eliminates code-based competitive moats
Exponential AI innovation creates rapid deflation that destroys the value of software and SaaS companies by making code infinitely reproducible, removing the pricing power and moats that previously supported high valuations.
Software stocks face multiple compression
Software companies are experiencing collapsing valuation multiples despite record earnings because investors cannot model their worth three years forward in an environment of unpredictable AI disruption.
💰 The Great Fiat Rotation 2 insights
Deleveraging from $800 trillion to $120 trillion
The global fiat system is deleveraging from an $800 trillion valuation toward the $120 trillion monetary base over 20-50 years, forcing a rotation into scarce assets that cannot be diluted or replicated.
Generational wealth transfer drives adoption
As wealth transfers from older investors who favor traditional assets to younger generations who allocate to Bitcoin, the cryptocurrency's market cap could theoretically expand from $2 trillion toward $50-100 trillion.
⚡ Bitcoin's Decoupling 2 insights
Breaking correlation with tech stocks
Bitcoin will soon decouple from its historical correlation with the NASDAQ and software stocks, separating itself as the only growth asset with true scarcity in a deflationary world.
Scarcity becomes the ultimate moat
In a world where AI destroys all code-based advantages, Bitcoin's mathematical scarcity represents the last remaining unassailable moat for investors seeking growth and protection from deleveraging.
Bottom Line
Position for a multi-decade rotation where Bitcoin absorbs value from the deleveraging fiat system and collapsing software multiples, as AI-driven deflation makes scarcity the only investable moat.
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