Dollar Devaluation Warning: Will It Spark Inflation?

Anthony Pompliano has advocated for the use of gold and bitcoin as hedges against the devaluation of the U.S. Dollar.

In a communication shared via the social media platform X on May 26, 2026, Pompliano warned that the devaluation of the dollar would result in inflation.

The investor positioned these specific assets as protective measures to preserve value in an economic environment where the purchasing power of the primary reserve currency declines.

A hedge is a financial strategy used to offset potential losses in one investment by taking an opposite position in a related asset. In the context of currency devaluation, investors seek assets that historically maintain or increase their value when the nominal value of a currency drops.

Gold has traditionally served as a primary hedge against inflation and systemic financial instability due to its physical scarcity and long-term history as a store of value.

Bitcoin is frequently categorized by its proponents as digital gold because of its protocol-enforced supply limit of 21 million coins. This scarcity is intended to prevent the devaluation typically associated with the expansion of fiat money supplies by central banks.

The thesis presented by Pompliano suggests that as the U.S. Dollar loses value, the relative cost of scarce assets tends to rise, thereby protecting the holder’s real wealth from the eroding effects of inflation.