I am a bit surprised by bitcoin, from my understanding bitcoin is supposed to be this amazing hedge against inflation and in times the money system crashes it should shine, like the time it was created when the housing market fell apart. However in recent times with the plandemic ect and now its seems that BTC is not the hedge it was created to be, waht do you think ?
Maybe I’m currently highlighting Bitcoin experiencing this all because of the hot issues that occur in stablecoins. Although I feel bitcoin is still the strongest asset that can protect against inflation. Judging from the blows of pumps and dumps, the bitcoin battle is fierce enough to stay afloat every hour.
I hope the issue that makes the value ofI hope the issue that makes the value of trust bitcoin Can be resolved soon. However, it is already used as an active currency in several countries.
When the issue of the pandemic ends and the war also ends he will achieve high achievements again.
Any item with a fixed or deflationary supply, and matching or growing demand, operates as a hedge against inflation. It could be traditional gold, water, food supplies, a coin, or something like BTC. The strongest point of BTC is that you cannot print Bitcoin like you can print fiat. So in theory, if fiat becomes worthless an asset with limited supply would increase in value. The problem is: yes, BTC fits this description very well, but what about the short-term volatility? It is for this reason that making predictions is very hard.
Well, I think it is too optimistic to call Bitcoin a hedge against inflation. It should be in a the long-term as others pointed out (limited supply), but in this current state, if inflation rises → traditional markets fall → crypto falls harder. This is just the scheme for today. I’d rather concentrate on other good properties of crypto and Bitcoin itself than its battle against inflation, because it hasn’t done good yet.