How Credit Expansion and Adoption Drive Bitcoin

In this episode, Nik Bhatia and Demian Schatt step back from short-term liquidity signals to examine the global balance sheet and its implications for Bitcoin. They break down why global wealth has decoupled from GDP, how financialization and credit expansion reshaped the world economy, and why policymakers have become increasingly resistant to prolonged contraction. Nik explains how Bitcoin fits into a system with nearly $1 quadrillion in existing net worth, why adoption and credit expansion matter more than simple rotation narratives, and what this framework means for Bitcoin’s long-term trajectory.

Link to article: https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/the%20rise%20and%20rise%20of%20the%20global%20balance%20sheet%20how%20productively%20are%20we%20using%20our%20wealth/mgi-the-rise-and-rise-of-the-global-balance-sheet-full-report-vf.pdf

📚 Bitcoin Age is here, order yours today: https://a.co/d/5gau08H

📊 The Bitcoin Layer is a bitcoin and global macroeconomic research firm.

▶️ Subscribe and turn on notifications for TBL on YouTube.
📚 Subscribe to TBL’s research letter: https://thebitcoinlayer.com/subscribe
🎧 Subscribe to The Bitcoin Layer on your favorite podcast platform.
📱 Follow TBL on X: https://twitter.com/TheBitcoinLayer
📩 Join the official TBL channel on Telegram: https://t.me/thebitcoinlayerofficial
🧢 Use code TBLYT10 for 10% off all The Bitcoin Layer Merch at http://TheBitcoinLayer.com/merch

⛓️ ₿lock Height 931466

⚡ Contribute to The Bitcoin Layer via Lightning Network: thebitcoinlayer@zbd.gg

Nik Bhatia's Twitter: https://twitter.com/timevalueofbtc
Researcher Demian Schatt's Twitter: https://x.com/demianschatt
Lead Statistician Augustine Carrasco Twitter: https://x.com/AugustineCarrB

The Bitcoin Layer and its guests do not provide investment advice.