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Scraped on 28/06/2025, 02:12:05 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 because their values are not dependent on the value of the currency. Debt is an example of something that is clearly not an inflation hedge.

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.

Original archived Re: is Bitcoin really a hedge against inflation?
Scraped 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.