People do not buy Bitcoin as an inflation hedge; they do so because it’s exciting.
NRPLUS MEMBER ARTICLE
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rom its debut in 2009 until late last year, the price of Bitcoin increased by several orders of magnitude, while inflation was even lower than the Federal Reserve had intended. By the end of 2021, Fed chairman Jerome Powell finally threw in the towel and acknowledged that the recent uptick in inflation would not be transitory. Bitcoin has since proceeded to lose half of its value. Perhaps it’s an egregious case of “buy the rumor, sell the news,” but to the naïve observer, Bitcoin is a lousy hedge for inflation.
Crypto fans will tell us that most people simply do not …
