Bitcoin is not an inflation hedge, it is its own thing
Bitcoin is not an inflation hedge, it is its own thing
Try to ask the right question. If you have the answer, it was not the right question
People are allowed to be paradoxical. People say bitcoin is a hedge against inflation, probably because of its limited supply. Some people, like Cathie Wood, claim the price of gold and the price of copper are the best forward looking indicators of inflation. The price of copper is falling, gold is hovering near the low of its trading range. Bitcoin is supposedly an inflation hedge, she is bullish on bitcoin but bearish on gold and inflation. First let’s point out that every economist and Fed’s forecast of inflation have been horribly wrong for the last 2 years. Nothing new there, they are economists. Also, apparently we are at peak inflation, so far, core inflation is still on the rise, and now even economists are saying, you should not exclude food and energy costs from inflation, because people actually consume food and energy, you know, in the real world. (Core inflation measures exclude food and energy costs). All this, and bitcoin is hovering near its cycling lows. Bitcoin is its own thing. Don’t worry about it.
Bitcoin is a fundamental new invention, because it solves the Byzantine general’s problem (which proof of stake does not) and it replaces a trusted third party by math and the natural human tendency to be greedy. Don’t worry and enjoy it.