Well actually Bitcoin can be the answer to that problem and it is very evident in countries like Zimbabwe and Venezuela where they are struggling with hyperinflation. In these countries it is not strange for Fiat currencies to lose value daily and people are turning to Bitcoin to protect the buying power of their local Fiat currency.
How? What do you propose? People of Zimbabwe and Venezuela all buying BTC?If so do you think the gold and btc Will be hedge?
It's really hard for BTC to be a good hedge because of its volatility. Imagine you wanted to avoid losing your wealth to 2% of inflation per year so you decided to put your life saving in Bitcoin a few weeks. By today you'd lose 20% of your wealth already
What about scalability and utility problem?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Nope, not all the people are switching to Bitcoin to replace their local currency, because it will be a bit to premature to do that, because not all the merchants are accepting Bitcoin as a payment option ...yet.
They are converting some of their money to Bitcoin to hedge against the falling value of their local currency. It is just a question of time until we see some 3rd world countries making a decision to accept Bitcoin as a reserve currency, because they think it will solve their economic problems.
