If You Expected Bitcoin to Beat Gold As An Inflation Hedge, You Understand Neither Gold nor Inflation

If You Expected Bitcoin to Beat Gold As An Inflation Hedge, You Understand Neither Gold nor Inflation

Share to Linkedin The market speculation that is Bitcoin has risen to prominence for a variety of reasons, but it's not unreasonable to say that the dollar, euro, yen, pound, yuan (or name your county's currency) have served as the cryptocurrency's greatest publicists. Owing to rising skepticism about government-issued "fiat" money, Bitcoin has had much more than its day in the sun. On the supposition that government monetary authorities can no longer be trusted to credibly oversee their currencies, Bitcoin has been viewed as a replacement. Since total supply of the cryptocurrency is limited such that its issuer can't "print" more of the private money form, supposedly Bitcoin is the ultimate inflation hedge. Or so it's been said, or thought. It's safe to say that skepticism about Bitcoin is rising amid a stretch in which the value of the "coin" has fallen. After hitting an all-time high of $68, 000 last November, the price has more than halved. As this is being written, one can be purchased for $28, 000. To which some will mutter that this wasn't supposed to be. Particularly as government measures of inflation like the CPI are registering multi-decade highs, Bitcoin should if anything be rallying.