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How Bitcoin Loans Could Save the Middle Class from Inflation

CryptoExpert by CryptoExpert
June 26, 2025
in Bitcoin News
0
Ledn CSO Explains How Bitcoin-Backed Loans Can Help the Middle Class Escape Inflation
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Growing inflationary pressures continue to strain economies worldwide, eroding purchasing power and threatening financial security. Mauricio Di Bartolomeo, co-founder and Chief Strategy Officer of Ledn, a leading digital asset lending platform, argues that inflation often hits the middle class the hardest, disrupting societal stability.

While Bitcoin is widely recognized as a store of value and a hedge against inflation, a sentiment Bartolomeo shares, he also highlighted an intriguing use case for BTC: Bitcoin-backed loans. In an exclusive interview with BeInCrypto, he affirmed that these loans serve as an ‘escape hatch’ for the middle class from currency devaluation.

How Bitcoin Protects Wealth Amid Hyperinflation

In recent years, hyperinflation has become a major concern in many countries like Venezuela, Argentina, Zimbabwe, and Nigeria. The rapid devaluation of their currencies has led to economic collapse and rising living costs.

“Zimbabwe’s Food Datum Line (FDL) for a single person rose by six percent to ZiG861.14 in January 2025, up from ZiG805.95 in December 2024,” local media reported.

Global Inflation Rates. Source: International Monetary Fund

Beyond its economic impact, hyperinflation also erodes social structures and exacerbates inequality. Bartolomeo explained that those with savings in dollars or foreign assets can maintain their wealth during such times. 

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However, the majority watch as their local currencies and assets quickly lose value, leaving them financially vulnerable.

“Hyperinflation tends to wipe out the middle class because it exposes a key divide within it: those who were lucky enough to own international assets, and those relying on local assets or still saving toward them,” Bartolomeo told BeInCrypto.

In contrast, he highlighted that Bitcoin offers an alternative that is insulated from local economic fluctuations. Bartolomeo stressed that Bitcoin’s features make it uniquely suited for these situations. It is divisible, accessible, and resistant to censorship, making it an effective store of value.

Additionally, he pointed out that while Bitcoin has historically been volatile, it has become more stable over time. Meanwhile, fiat currencies continue to lose value in comparison. 

The Case for Bitcoin: Why It’s the Smart Choice Over Traditional Safe-Haven Assets

While all these characteristics make Bitcoin’s case compelling, a key question remains: Why would middle-class investors choose Bitcoin over traditional safe-haven assets like gold or real estate?

“Bitcoin can be bought in small fractions, meaning people can put $100 of their paycheque every month, allowing them to build wealth over time. They cannot buy fractions of a business or an investment property. It allows you to convert rapidly depreciating currency into a strong asset, one dollar at a time,” the executive said.

Bartolomeo elaborated that traditional investments like stocks and real estate are often heavily regulated. Moreover, these markets can be interrupted by stock exchange closures or legal or procedural hurdles. This, in turn, hinders access to liquid capital.

In addition, while gold remains strong in times of crisis, it presents challenges in storage, transport, and quick sale for emergency capital. According to him, Bitcoin counters these challenges. It’s easy to purchase, store, and transfer digitally without needing physical security or complicated transportation. 

“And importantly, it can be easily bought in fractions and does not have to be ‘melted’ into a new bar or weighed when paying or using it. We believe Bitcoin will overtake gold as the preferred hedge against currency debasement and inflation,” Bartolomeo remarked.

Bitcoin-Backed Loans: A Game-Changer in Global Finance

Beyond its function as a store of value, the co-founder of Ledn highlighted that Bitcoin also unlocks new opportunities in financial services through Bitcoin-backed loans. For context, Bitcoin-backed loans are loans that are secured by using Bitcoin as collateral.

Instead of traditional assets like real estate or stocks, borrowers can pledge their Bitcoin holdings to borrow fiat currency or other cryptocurrencies. Bartolomeo detailed that Bitcoin-backed loans provide unmatched access to global financial markets, which no other asset can provide.

“Bitcoin-backed lending also provides borrowers with access to global capital rates regardless of local economic conditions, which breaks the traditional geographic monopoly of regional lenders and creates financial opportunity in areas traditionally underserved by banking — effectively routing global capital into previously isolated markets, providing more money to support a larger middle class,” Bartolomeo mentioned to BeInCrypto.

He added that having access to stable capital enables individuals to invest in businesses, support their children’s education, and make long-term plans—opportunities that would be out of reach with a depreciating local currency.

But is borrowing against Bitcoin better than holding it? Well, according to the executive, the decision ultimately depends on individual needs.

He stressed that holding Bitcoin is often the easiest choice if an individual has readily available capital. Why? Because it involves no additional risks other than those tied to the investment itself.

On the other hand, for those needing funds for day-to-day expenses or to capitalize on an investment opportunity, a Bitcoin-backed loan provides a way to access capital while still benefiting from Bitcoin’s potential upside.

“We believe Bitcoin is the world’s most pristine collateral. It trades 24/7, it is deeply liquid, and transactions can be sent globally in real time,” he commented.

Bartolomeo also suggested that Bitcoin could gain traction in middle-class retirement strategies. This is particularly relevant in countries with unstable currencies or poorly designed retirement systems.

“Even in developed countries like the US, the traditional retirement playbook of heavy weighting towards bonds and equities is falling behind the pace of inflation and struggling under the current fiscal backdrop. Bitcoin offers an uncorrelated asset with significant growth potential that not only shields their passive savings but also transforms it into active capital without sacrificing ownership,” Bartolomeo stated. 

Thus, Bitcoin-backed loans, as championed by Mauricio Di Bartolomeo, offer a lifeline for individuals and economies battered by inflation and currency devaluation. By providing access to global capital, preserving wealth, and fostering financial inclusion, Bitcoin serves as more than just a speculative asset. It becomes a practical tool for rebuilding and sustaining the middle class. 

As economic pressures mount, Di Bartolomeo’s vision reinforces Bitcoin’s potential to bridge collapsing monetary systems with stable financial markets. This offers hope and opportunity in uncertain times.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.



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