Bitcoin’s Price: Debasement & Adoption—Two Fingers, One Hand

Fiat debasement and adoption are key drivers of Bitcoin’s price, but they’re not the same.

Debasement—when fiat currencies lose value due to inflation or money printing—makes Bitcoin’s fixed 21M supply a compelling hedge, pushing its price up as fiat weakens.

Adoption, meanwhile, grows from more people, businesses, or institutions using or holding Bitcoin, spiking demand.

While distinct, they’re linked: debasement often fuels adoption as folks flee failing currencies, like in hyperinflation-hit countries. Together, they form a powerful feedback loop, driving Bitcoin’s value.