Article 4
Date 10/10/22
Topic: Crypto as a hedge against Inflation
Hi everyone today we are looking at Crypto as a hedge against Inflation.
💡 Bitcoin was supposed to function as a currency but it has not been able to live up to this use case. After failing to perfectly meet this use-case, Bitcoin proponents believed that its inherent properties such as its fixed supply and scarcity make it a good hedge against Inflation.
However, Bitcoin as well as many other cryptocurrencies are struggling to rally an impressive performance despite the high rate of inflation that is being currently experienced. Inflation is at 8.3% in the United States and 9.9% in U.K. By that logic, Bitcoin should be mooning right now.
When inflation arises as a result of monetary growth, Bitcoin performs well as a hedge against price increases. Its believes that the disruption of the market and energy supplies is the primary factor driving this year's extreme inflation, and these factors make it less effective.
Cryptocurrency can serve as an inflation hedge, but not before it establishes its fundamentals and sees widespread acceptance.
1)(BTC) should protect users against inflation.
❔Do you think Bitcoin or crypto generally is or could be a reliable hedge against inflation during times of economic turmoil?
🤔 Is Inflation majorly a function of printing more money and do you think Bitcoin and other cryptos which are believed to be store of values, have fixed supply or other scarcity attributes can act as Inflation Hedge?
🗳️ Share your thoughts and let's interact so that we will know more about it 👥
**Thanks for reading
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