I have been thinking about this, Inflation happens when the value of money drops and the cost of goods and services rises. People lose purchasing power, and their savings can buy less over time. Because Bitcoin has a limited supply of about only 21 million coins, many call it “digital gold” with this can it act as a hedge against inflation?. The idea is that, unlike paper money which governments can print endlessly, Bitcoin cannot be inflated beyond its fixed supply.
In some countries with high inflation, people already turn to Bitcoin as a store of value to protect their savings from local currency collapse. They can convert money to Bitcoin quickly and send it across borders without banks. But currently Bitcoin’s price itself is very volatile. While it has risen greatly over the long term, it also experiences deep drops in the short term. This makes it risky for people who need stability in their savings. In a bad market, the value of Bitcoin can fall even faster than inflation eats away at fiat money.
The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?