Post
Topic
Board Bitcoin Discussion
Re: is Bitcoin really a hedge against inflation?
by
odolvlobo
on 28/06/2025, 02:07:33 UTC
Many people describe it as a hedge against inflation, but with its frequent price fluctuations, I sometimes wonder how reliable that claim is.

Bitcoin is a hedge against inflation because it has a fixed supply, or at least currently a supply growing less than the rate of inflation. In fact, most assets can be considered as hedges against inflation.

A hedge is something that is not correlated (or at least not positively correlated), so price fluctuations are not relevant.

What you are really asking is whether Bitcoin is a good hedge, considering it's volatility. In my opinion, if you are looking for something that is only a hedge, then Bitcoin is probably not the best. I think a better choice would be land or housing.