Sovereign Debt Fleeing Fiat into Crypto — Limits on Value Destruction

I believe states can no longer afford policies that destroy value because sovereign creditors are increasingly moving into crypto and away from fiat. Governments are running out of traditional buyers for their bonds, and that limits their ability to inflate or devalue currency without consequences.

I see this migration as a structural constraint on monetary policy and a catalyst for faster crypto adoption. If bond markets continue to shun sovereign paper, pressure on fiat systems and on political choices will only grow.