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In particular, the high probability of an incoming energy crisis causing inflation to spike was concerning me.But before my thoughts could spiral into forecasting my own imminent economic demise, I had a moment of clarity when I remembered that I own some Bitcoin (CRYPTO: BTC). That then let me fall asleep quite quickly afterwards. Here's why.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Getty Images.Before we get into how Bitcoin exerted such a calming effect, let's unpack the current situation and the macro problems it's likely going to cause.As you've doubtlessly heard by now, the Strait of Hormuz crisis is the largest oil supply disruption in modern history. When energy costs spike, inflation follows, because the cost of energy is baked into most goods and services. That puts central banks in a bit of a pickle. They can choose to raise interest rates and risk recession or stagflation, or choose to hold rates steady and watch prices climb until demand starts to be destroyed, which could then also lead to a recession or stagflation.For its part, the Federal Reserve has so far signaled a hawkish posture, with markets pricing in zero rate cuts for 2026. Aside from controlling the cost of borrowing money via interest rates, governments also often respond to economic shocks by expanding the money supply. Every dollar added to the circulating total dilutes the purchasing power of the other ones.Thus, if the Strait remains closed, and energy transit disrupted, the state of play right now suggests that prices for many things are going to climb, potentially sharply, and possibly for much longer than just a couple of months. If there's substantial economic disruption after the energy shock itself subsides, there may be some new money created as well.This is where Bitcoin's properties become extremely useful. The protocol caps total supply at 21 million coins, and no government can print more of it. No crisis, no war, and no act of Congress can change the halving schedule that determines how much Bitcoin is produced by mining. That should, in theory, enable it to retain its purchasing power even during a substantial amount of inflation.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersMETA Meta Platforms, Inc. 660.65 +26.12 (+4.12%)AMZN Amazon.com, Inc. 249.56 +9.67 (+4.03%)BTC-USD Bitcoin USD 74,113.41 +1,268.44 (+1.74%)SNAL Snail, Inc. 1.9800 +1.6030 (+425.20%)QBTS D-Wave Quantum Inc. 16.80 +2.15 (+14.64%)PortfolioSign in to access your portfolioSign inTop gainersTVTX Travere Therapeutics, Inc. 42.58 +11.88 (+38.70%)XNDU Xanadu Quantum Technologies Limited 14.45 +2.96 (+25.76%)BE Bloom Energy Corporation 214.13 +37.46 (+21.20%)CRDO Credo Technology Group Holding Ltd 160.81 +26.44 (+19.68%)IONQ IonQ, Inc. 35.42 +5.66 (+19.00%)Top losersKMX CarMax, Inc. 41.70 -7.38 (-15.04%)FSLY Fastly, Inc. 20.91 -3.46 (-14.20%)ASTS AST SpaceMobile, Inc. 88.98 -9.99 (-10.09%)DOCN DigitalOcean Holdings, Inc. 72.69 -7.18 (-8.99%)CRK Comstock Resources, Inc. 16.08 -1.25 (-7.21%)Most activeNVDA NVIDIA Corporation 196.19 +6.88 (+3.63%)HOLX Hologic, Inc. 76.01 +76.01 (0.00%)INTC Intel Corporation 63.52 -1.68 (-2.58%)NOK Nokia Oyj 10.41 +0.04 (+0.39%)AAL American Airlines Group Inc. 12.06 +0.83 (+7.39%)Top economic eventsEarnings eventsMy earnings eventsEarnings events