2025 has arrived and promises to be a revolutionary year in the crypto market. With a pro-crypto president taking office in the US for the first time, the regulatory side, which until then was voracious with cryptocurrencies in the country, tends to have more lenient measures. Not to mention that this year should be the peak of this cycle's bull market. A lot can change, but for some aspects we need to go back to the past to understand what could be coming.

The world has always been transformed by secular technologies: innovations that change the way we live and generate unique cycles of economic growth. These technologies – such as the locomotive, electricity and the internet – follow predictable patterns that involve initial skepticism, explosive growth, speculation and consolidation.

Now, we are facing another of these revolutions, perhaps the most important of our generation: Bitcoin

Bitcoin as Secular Technology

Alasdair Nairn analyzes in his book "Engines that move markets" how great innovations begin discredited, go through bubbles and end up shaping the economy. And Bitcoin fits perfectly into this pattern:

• Initial distrust: When it was launched in 2009, Bitcoin was called a "nerd currency" or even a "fraud". In fact, these statements only stopped more recently, when BTC began to be seen by large institutions and even countries.
• Accelerated growth: With its adoption by companies like Tesla and MicroStrategy, we saw an explosion in price and interest, both from individuals who want a way out of the current system, and from Wall Street giants.
• Speculative bubbles: Cycles like those of 2017 and 2021 led to price spikes followed by sudden drops. This is due to the cycle, but many people preferred to call it a bubble.
• Consolidation: Today, Bitcoin is compared to digital gold and is being adopted by banks, large companies and governments. This has not yet fully materialized, but we are seeing mass accumulation never seen before.

Just as the internet faced initial skepticism and is now indispensable, Bitcoin is on track to become the foundation of a new global financial economy.

Fiat Standard and the Traditional Money Crisis

To understand the importance of Bitcoin, we need to look at the problem it solves. The money we use today – known as fiat currency – is controlled by governments and central banks, which can print it in unlimited quantities.

Why is this a problem?

• Inflation: Printed money loses value over time. Since 1971, when the dollar was delinked from gold, the cost of living has soared while real wages have stagnated. In Brazil it is no different: inflation is systemic and results from disorderly fiscal policies, excessive currency issuance and an increase in public debt. Even after advances such as the Real Plan, the devaluation of purchasing power persists due to monetary expansion and public spending, mainly affecting the poorest.
• The Cantillon Effect: Whoever receives the printed money first (banks and financial elites) buys goods at old prices. The rest of the population, who receives the money later, pays more for everything.

Since 2000, the global monetary base has increased more than 4x. This benefited the elites but eroded the purchasing power of the middle class. This is where Bitcoin stands out as a solution.

Why Bitcoin is the Answer?

Unlike fiat money, Bitcoin has unique characteristics that solve fundamental problems in the financial system:

• Absolute scarcity: Only 21 million units will exist, protecting you from inflation.
• Decentralization: Does not depend on governments or central banks. You control your own money.
• Transparency: All transactions are recorded in a public ledger (blockchain), eliminating intermediaries and fraud.

These characteristics make Bitcoin a solid, long-term alternative to the traditional monetary system, making it a value-preserving asset in a world of devalued currencies.

2025: The Decisive Year for Bitcoin?

Historically, Bitcoin follows market cycles driven by events such as halving, which reduces the issuance of new coins. These cycles usually culminate in bull markets, like the one that occurred in 2017 and 2021.
2025 could mark the culmination of Bitcoin's next bull cycle, driven by institutional adoption, clearer regulations and growing distrust in the fiat system. Those who understand this moment and prepare will be faced with a historic opportunity.

Posted Using InLeo Alpha