It’s sad when people who don’t understand Bitcoin try to explain it to those who have been in it for much longer. It is repulsive to see one of Bitcoin’s founding principles smeared as “an idea built by influencers and speculators in the last years”.
Escape the arbitrary inflation risk of centrally managed currencies! Bitcoin's total circulation is limited to 21 million coins.
I am not citing Satoshi as an authority, but rather, to rebut the ridiculous misinformation that Bitcoin’s anti-inflationary policy was “an idea built by influencers and speculators in the last years.”
That is wrong in fact. Not a matter of opinion.I like the idea of having correcting threads.
So to the point, I’ll just add some obvious information for potential newbies reading this:
If we define the effects of inflation as a resulting loss of purchasing power over time, and Bitcoin is a form of money that is provably increasing in purchasing power over time -> Then it’s just obvious that it is hedging against inflation.
What some people might not get is that every traded asset underlies market forces regardless, and Bitcoin specifically is also kinda cyclical. The point is: it won’t appreciate when you want it to, and the market might have already priced suspected events in beforehand. So to any newbie reading this, if you want to use Bitcoin as a hedge against inflation you also gotta hold it over longer periods of time, you can’t just go in when inflation is already at its worst and then expect Bitcoin to save you. That’s not how markets work. Time in the market beats timing the market, and you will have to operate on a being one step ahead basis.