In general - would Bitcoin be a hedge against soon to come hyper inflation?
One of the issue is people that are panic, they can sell Bitcoin when the price has already decreased or when it's price is decreasing. This is how many people lost some amount of money in the past, but the true holders did not lose. Bitcoin is a deflationary currency which is not controlled by any central body, it has a limited/finite supply which makes it deflationary. But, that is not all, Bitcoin also is being adopted by people, its adoption (buying and usage) also helps in its price valuation. But, yet, that not all, one of the reason that the price of bitcoin valuate is price inflation of fiat and governmental (central) control over fiat in which the government devalue it (fiat). I remembered when the price of bitcoin was around $10000, it was said that the US dollar devaluation over the last then years is also responsible for part of the increase, that the actual price of bitcoin at the time was around $8000.
To understand more about this, you can try to go through one of the thread I created in the past while gold and Bitcoin are compared to US dollar price devaluation:
Bitcoin and gold price inflation adjusting all-time-highGold reached a price of $678 U.S. dollars in 1980, according to a breakdown from Visual Capitalist. Accounting for inflation, based on calculations from Officialdata.org, $678 in 1980 held the same buying power as approximately $2,142 in 2020. The precious metal technically broke its U.S. dollar all-time high this year, hitting $2,075, according to TradingView data. Its 1980 record purchasing power level remains unbroken, however. Since its push to $2,075 in August, gold has retraced in price, sitting near $1,778 per ounce at the time of publication.
Bitcoin hit its last all-time price high in 2017, tagging $19,891.99, according to Coinbase’s price index. Accounting for inflation, Bitcoin’s record high stands at $21,131.02 in terms of value, Officialdata.org indicates. U.S. dollar holders lose approximately 2% of their purchasing power per year on average from inflation. Official data reveals 2.13% inflation in 2017, 2.49% in 2018, 1.76% in 2019 and 1.86% in 2020. “If you bought #Bitcoin at the top in December 2017, you won’t truly recover your buying power until we hit 21.24k,” podcaster Vlad Costea said in a tweet on Tuesday. Costea used $20,000 as Bitcoin’s high, putting the numbers and dates into an inflation calculator to determine the most accurate figures.
So, from this quote, you will be able to understand how even a strong currency like US dollar is responsible for more price valuation of appraciative assets like Bitcoin. So, Bitcoin will help against fiat hyperinflation.