Is bitcoin an inflation hedge??

S

S2007S

If this is an inflation hedge why is it up near 70,000??

The story about inflation must not be adding up......



Or is it........
 
Well if inflation means that your dollars purchase less goods and services over time, then an asset like Bitcoin which appreciates in value (I.e. dollars) over time would certainly be considered an inflation hedge.
 
Bitcoin could be an inflation hedge (ie press the BUY button first).


The next Q could be :

Is corn an anti-inflation hedge (ie press the SELL button first)?

Instead of focusing on hedging,
focus on trading.
Trade well. Then the profit can cover the high inflation cost.
 
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S2007S said:
If this is an inflation hedge why is it up near 70,000??

The story about inflation must not be adding up......



Or is it........
More...

Yes. I read an article about the mass loss of wealth people are suffering who do not hold Bitcoin. If you had a million dollars in real estate assets 5 years ago, your wealth has possibly dropped whereas if you held a million dollars in Bitcoin 5 years ago you would be 10x richer. I'll try to find the article...basically by doing nothing people are losing their fortunes

About Bitcoin as an inflation hedge..if you bought a Bitcoin when it was 6k, it now has the purchasing power of 60k. If you put 6k in the bank what would it be today? How about if you bought gold? So yes.
 
So who is telling the truth....
.bitcoin or Powell and fed friends????

They claim we are at a cool 3% and one last guy on cnbc said if your strip out rent, inflation is actually at 2%

So what are we hedging at here, future hyperinflation risks?? Or maybe the fed and everyone else is lying and we are still sitting at 6% 7% 8% inflation...
 
No, to hedge against inflation you need a stable asset that appreciates over time.

Bitcoin might be close to 70k today, but it can easily go to 10k again when whales cash out.
 
When it is going up, yes. (ex. last year)

When it is going down, no. (ex. the year before that)
 
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Drawdown Addict said:
No, to hedge against inflation you need a stable asset that appreciates over time.

Bitcoin might be close to 70k today, but it can easily go to 10k again when whales cash out.
More...

That's what makes it such a great inflation hedge. When it drops to 10k you load up, and a year later when the dollar is struggling, you are struggling too...sitting in traffic in your Lambo.
 
I was watching CNBC Squawk Box Monday morning and they had a guy on who said BTC was a perfect embodiment of the risk appetite of investors. I think that seems the most accurate description of it in terms of the way it reacts in any given moment. I think his name was Anthony Pampliano.
 
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