The global economy is at an inflection point of the inflation cycle, holding Crypto Assets is the best way to preserve value.

Some people believe that the Crypto Assets bull market has ended and that tokens need to be launched immediately, questioning why Bitcoin has not followed the Nasdaq 100 index's rise. However, these views contradict their perspectives on geopolitical and global monetary situations, indicating that we are at a turning point – transitioning from one geopolitical and monetary global landscape to another.

I will analyze the three major cycles from the Great Depression of the 1930s to the present, focusing on the world dominated by the United States, as the global economy is a derivative of the financial policies of dominant empires. Understanding and predicting the next major cycle is very important.

There have been two historical periods: the local period and the global period. In the local period, the government imposed financial repression on savers to fund wars. In the global period, financial regulations were relaxed, promoting global trade. The local period was an inflationary period, while the global period was a deflationary period.

Investment strategies can be categorized into three types:

1. If you believe in the system but not in the managers, invest in stones.

2. If everyone believes, invest in government bonds.

3. If no one believes, invest in assets that do not rely on the country, such as gold or Bitcoin.

During local inflation periods, one should hold gold instead of stocks and bonds. In global deflation periods, one should hold stocks instead of gold and bonds. Government bonds generally do not retain their value in the long term.

From 1933 to 1980 was the period of America's peaceful rise. The United States suffered relatively little in World War II, as its industries rebuilt the world and reaped huge rewards. However, it still needed to pay for the war costs through financial oppression, such as banning gold ownership and controlling interest rates. The stock market became the only way out for savers.

The period from 1980 to 2008 was a global cycle of American hegemony at its peak. The United States was confident in defeating the Soviet Union and began to relax financial regulations. Volcker raised interest rates to curb inflation, and the dollar strengthened. Gold performed worse than stocks.

Since 2008, there has been a comparison between the United States and the medieval native cycle. In the face of the financial crisis, the Federal Reserve implemented quantitative easing. Proxy wars between major political groups have once again fully erupted. Countries are turning inward, preparing for war. This means that savers will be asked to fund the nation's wartime expenditures, enduring financial repression and severe inflation.

Bitcoin, as a stateless currency, offers an alternative. Its performance far exceeds that of gold and stocks. Quantitative easing has led companies to use more for stock buybacks rather than increasing production capacity, making American manufacturing fragile. In the future, the way credit is allocated may be more similar to that of China, Japan, and South Korea, with government guidance.

I am confident that Bitcoin will recover and rise again, as we are in a new localized, nation-state prioritized inflation cycle. The U.S. budget deficit is expected to increase significantly, and GDP growth expectations remain strong. In this situation, holding Crypto Assets is the best way to preserve value.