Crypto investors have had a lot to worry about lately. Bitcoin is down over 25% in less than two weeks thanks to Tesla’s about-turn on bitcoin acceptance and a warning from China. I have been content to respectfully watch the crypto action from the sidelines, but couldn’t help notice the recent chatter on bitcoin’s value as an inflation hedge and comparisons with gold. E.g. Bank of America published a
Thx for putting it upfront that you think that Bitcoin is not an inflation hedge. Did I miss you stating what might be 2-3 options for an inflation hedge?
Very good analysis. After reading your article, I have a hypothesis. Bitcoin is essentially a kind of money, not an asset that can generate cash flow. So when inflation expectations rise, it reduces the attractiveness of Bitcoin, and people will invest more in assets that can generate cash flow.
Thx for putting it upfront that you think that Bitcoin is not an inflation hedge. Did I miss you stating what might be 2-3 options for an inflation hedge?
Very good analysis. After reading your article, I have a hypothesis. Bitcoin is essentially a kind of money, not an asset that can generate cash flow. So when inflation expectations rise, it reduces the attractiveness of Bitcoin, and people will invest more in assets that can generate cash flow.