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The Debasement Trade: Real Returns vs. The Dollar Illusion

Since 2020, markets have exploded higher. The NASDAQ is up 165%, the S&P 500 over 100%, and home prices nearly 60%. On paper, investors look richer than ever.But that’s in U.S. dollars — a currency that’s been quietly debased by record money creation and inflation. When you measure those same assets in gold or Bitcoin, the picture changes dramatically.

Author

Computer Money
October 05, 2025

In Gold Terms

Gold has always been the classic hedge against debasement — it doesn’t yield, but it doesn’t inflate away either.

  • NASDAQ: +7%

  • S&P 500: –18%

  • Home Prices: –37%

In real terms, the post-COVID bull market hasn’t built wealth; it’s just preserved it. The nominal rally was largely a reflection of currency dilution, not fundamental growth.

In Bitcoin Terms

Bitcoin, the hardest asset with a fixed 21 million supply, shows the full effect of fiat debasement.

  • NASDAQ: –78%

  • S&P 500: –84%

  • Home Prices: –87%

Nearly all assets have lost massive purchasing power when priced in Bitcoin. It’s not that Bitcoin surged so much, it’s that fiat eroded that fast.

The Takeaway

The “debasement trade” isn’t about chasing gold or Bitcoin. It’s about recognizing that nominal returns can mislead.

Every asset class such as equities, real estate, bonds now carry an invisible risk premium called monetary debasement. Central banks can print liquidity, but not purchasing power.

If your portfolio is measured only in dollars, you’re likely playing defense. The forward-thinking move is building exposure to real, yield-bearing assets that compound in hard units of value, not paper ones.

The Real Question

It’s no longer just how much you made BUT instead it’s what you made it in.