The New Bitcoin Trade Everyone Is Doing | Jeff Park
🎯 Summary
Podcast Episode Summary: The New Bitcoin Trade Everyone Is Doing | Jeff Park
This 37-minute episode featuring Jeff Park, CIO at ProCAP BTC, focuses on the accelerating institutional recognition of sovereign fiscal debasement and how this is driving capital toward non-fiat hedges, primarily Bitcoin and gold. The conversation contrasts the declining relevance of traditional US fiscal stability with the rising importance of global industrial capacity.
1. Focus Area: The primary focus is on Macroeconomics and Crypto/Digital Assets, specifically analyzing the “debasement trade” driven by global government fiscal dominance, the changing role of the US dollar, and the resulting capital allocation shifts into Bitcoin as the ultimate non-sovereign store of value.
2. Key Technical Insights:
- Gold as an “Altcoin”: The concept that if Bitcoin did not exist, gold’s price would likely be significantly higher ($8k–$10k/oz), suggesting Bitcoin is currently absorbing a portion of the demand that would otherwise flow solely into gold.
- Wealth Migration to Bitcoin: Successful capital generated in other assets (including gold) is increasingly seen allocating toward Bitcoin as the preferred denominator for wealth preservation, positioning gold as a secondary or “altcoin” relative to Bitcoin’s scarcity narrative.
- Custody Advantage: Bitcoin offers a superior self-custodial solution compared to traditional gold holdings (like GLD ETFs or physical storage), making it a more efficient store of wealth for institutions seeking true sovereignty.
3. Market/Investment Angle:
- The Debasement Trade is Mainstream: Institutional investors (Paul Tudor Jones, Ken Griffin) are now openly embracing the debasement trade, recognizing that money printing is an unstoppable global agenda.
- Shifting Risk Perception: The traditional “risk-free rate” (US bonds) must now be redefined as the “risk-full rate,” incentivizing investors to take more risk on the risk curve in assets like Bitcoin rather than holding depreciating dollar-denominated debt.
- Morgan Stanley Allocation: The firm’s recommendation for a 2-4% allocation to Bitcoin within an “opportunistic growth” bucket signals mainstream adoption, though the hosts argue this allocation should be labeled “evergreen value” due to Bitcoin’s permanent scarcity.
4. Notable Companies/People:
- Jeff Park (CIO, ProCAP BTC): The guest, providing the core analysis on fiscal dominance and the debasement trade.
- Anthony Pompliano (Host): Discussing the macro narrative and Bitcoin’s role.
- Paul Tudor Jones & Ken Griffin: Cited as high-profile investors confirming the trend of de-dollarization among sophisticated capital.
- Morgan Stanley & Vanguard: Mentioned as legacy institutions capitulating or adapting to client demand for crypto exposure.
- Tether: Noted for launching products that pool Bitcoin and gold performance, confirming the interplay between the two assets.
5. Regulatory/Policy Discussion:
- The conversation highlights the irrelevance of US government drama (like shutdowns or credit rating threats) to global markets, contrasting it with the visible industrial might of nations like China (e.g., the Hanjiang Bridge construction).
- The shift is away from political debates about fiscal responsibility (e.g., cutting Social Security) toward individual self-preservation via non-sovereign assets.
6. Future Implications: The industry is moving toward a paradigm where industrial production and productive capacity (like AI) are valued over “funny money” games driven by sovereign debt. The acceptance of the debasement trade means Bitcoin is transitioning from a speculative asset to a recognized, permanent component of diversified, non-dollar-denominated wealth preservation strategies.
7. Target Audience: Financial Professionals, Macro Hedge Fund Managers, and Sophisticated Crypto Investors who need to understand the intersection of global monetary policy, institutional capital flows, and digital asset valuation.
🏢 Companies Mentioned
đź’¬ Key Insights
"I think that trend is pretty inevitable at this point."
"And at the center of that is that reality that data is kind of the last frontier of colonization. That is all we have left. You and I have valuable data. It is the one thing we can empower ourselves to find productivity in, and what can you do about it that is not going to be consumed by the FANGs of the world that you get to own and exercise the right to earn an income off?"
"So the readiness of Polymarket being a part of our financial infrastructure is showing you a big mega trend, which is financial information is becoming actually news information."
"And on that point, the biggest driver of liquidity this year has been China, right? Their M1 liquidity actually has increased tremendously this year, and they are on now a pretty well-documented plan. They are actually cutting down the oversupply of all their industrial output. They are actually trying to bring consumption back a little bit, invest in the private sector the correct way, and so you have seen actually Chinese equities react to it. So like M1 liquidity injection by China is very real, and that, I think, is the headline story of 2025."
"We think all roads lead to Bitcoin, right? In my opinion. That is why people also have said within the crypto VC industry that all coins have been on the margin great because at some level, those who find success in all coins eventually allocate some portion back to Bitcoin regardless. Wealth creation leads to Bitcoin as part of the denominator."
"One of the things people have called on for years, even the most tired gold bugs, is that GLD is not gold because it is an IOU that once you feel like you need it at the exact moment of its tail risk, it may not be actually available and it could just have a very, and in that sense, that challenges the idea of custody, the idea of self-custodial ownership, to which anyone who owns Bitcoin, I think, will find that aspect much easier to do."