The Silent Tax You Didn’t See Coming

Salam, Hi everyone

Let’s talk about a force that quietly eats into your wealth, every single day — even when you think you’re playing it safe:

Inflation.

We’re told it’s “under control.” But anyone paying for groceries, insurance, or rent knows:

Inflation is not a glitch — it’s a strategy.

For years, central banks have quietly printed money (i.e. Quantitative Easing), kept interest rates around 2%, and used inflation as a tool to keep the economy running.

But in practice?
That tool transfers value away from your savings and into harder assets.
It’s a silent tax — designed into the financial system.

When your money sits still, it loses ground. And while your bank account might look stable, the purchasing power behind it is shrinking — slowly, invisibly. Indeed, economists (especially Keynesians), define inflation as the “loss of the purchasing power of money” (not the increase of the Consumer Price Index).

Where can value go when money weakens?

For decades, the answer was simple: equities and real assets.
Own productive businesses, and you keep pace with inflation. Sometimes, you even outrun it.

In an environment where fiat currencies are systematically debased, serious investors are asking:

Traditionally, the answer was gold (we will elaborate on this in future newsletters in relationship with Islamic principals). Today, that answer increasingly includes Bitcoin — not as a speculative asset, but as digital capital.

One reason? .

Unlike fiat, Bitcoin operates on a fixed supply. No central authority can increase its issuance. But even more interesting: it now shows a growing correlation with global liquidity cycles.

📊 According to CryptoRank data (see above), the global money supply (M2) and Bitcoin’s price move in striking tandem — with expansions in liquidity leading Bitcoin rallies by several weeks. In other words, when central banks print more, Bitcoin often follows upward.

This reinforces its role not just as a hedge against inflation, but as a signal-reactive asset in a broader macro playbook — much like gold or equities.

Of course, this correlation should be interpreted with caution. Liquidity expansion doesn’t always translate directly into crypto inflows. But as a directional signal, rising global liquidity provides meaningful context for Bitcoin’s recent strength — especially in an environment of anticipated rate cuts and sustained low opportunity costs.

And as the next crypto cycle unfolds, we’re entering what could be a powerful altseason — a phase where groundbreaking technologies in AI, finance, and infrastructure are tokenized and capitalized in new ways.

This isn’t about chasing pumps.
It’s about understanding that we’re entering a new paradigm — and real wealth will be built by those who understand how systems evolve.

The Key: Don’t React. Position.

Inflation won’t send you an alert. Neither will the next crypto cycle, or macro shift.
That’s why we don’t chase trends here.
We position for what’s coming — with discipline and clarity.

Ready to go deeper?

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Because staying informed is good —
But being positioned is better.

Until next week,
Saâd
from Swiss Islamic Finance