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RE: Is Bitcoin Hedge Against Inflation

in LeoFinance4 years ago

Prices don't adjust immediately because someone releases an inflation print, it first goes through producer price inflation, then gets passed on to the consumer, so CPI while manipulated is still a lagging indicator.

While bitcoin does trade in lock step with stocks, because large traders have their hand in booth pools, you can see overall annual appreciation (CAGR) is well above that of inflation while other assets arent

So yes it's an inflation hedge and a credit risk hedge which no one is pricing in

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THE CAGR is good, there is no doubt about it, but again since it is closely associated with the FIAT currency mainly USD. If the value of USD is dropping, BTC is feeling the heat too.

Posted Using LeoFinance Beta