Quote from: ranochigo on August 06, 2024, 03:47:02 PM

Quote from: legendbtc on August 06, 2024, 03:35:50 PM

Bitcoin is very sensitive and can have strong volatile due to fiscal policies or the financial markets as you said. However, those are just short-term volatile, but if we zoom out and look at the bigger picture in the long term. I think bitcoin is still a good inflation hedge.

Looking at the chart, we see that bitcoin's growth rate is impressive over the long term, and if we think it's not a good inflation hedge, that's not fair to bitcoin.

Objectively speaking, gold has a far longer history and has been through several economic cycles. At the current stage of Bitcoin’s growth, I wouldn’t consider it to have gone through more than one economic cycle.

If you’re actually looking at the long term, I would extend it to a few decades. Bitcoin is quite subjected to information gap, and that’s why you see the trend for Bitcoin to be increasing year on year. People find Bitcoin to potentially be a better currency and they decide to invest in it as time goes by.

Remember, economic cycles lasts quite a couple of years. It would only be fair after it has been through a few, and that adoption is stable.

I agree with you in saying that we need to wait for bitcoin to go through a few more economic cycles to make an accurate assessment of it. And if we evaluate it fairly, it is clear that bitcoin still cannot compare to gold in terms of inflation hedge or safe haven. But is it fair to look at its growth over the last 15 years and what it has done during the Covid pandemic and say that it is not a hedge against inflation? 15 years is not too long for the world economy, but in the past 15 years, has any asset had such incredible growth as bitcoin?

It's not as good as gold but at least it deserves to be considered another option besides gold.