Bitcoin yet to prove inflation hedge status, but the time may come soon
As inflation numbers across the globe continue to rise, is it only a matter of time until Bitcoin’s potential as a store of value is recognized? For years, the narrative surrounding Bitcoin (BTC) has been one which has portrayed the digital asset as being a hedge against monetary inflation. This is because inflation figures have been on the rise across the board over the last couple of years thanks in large part to governments printing copious amounts of their local fiat assets to counter the financial devastation caused by the COVID-19 pandemic.To put things into perspective, since the....
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A portfolio manager and member of Blackrock’s Global Allocation Fund says gold is now a less effective hedge against inflation as well as moves in other assets such as stocks. In comments that appear to undercut the precious metal’s renowned status, Russ Koesterich claims that “gold’s ability to hedge against inflation has been somewhat exaggerated.” Gold Less Reliable Across Most Investment Horizons While Koesterich is still cognizant of gold’s status as a “reasonable store of value over the very long-term,” he does however opine that....
BlackRock executive Russ Koesterich says gold is failing as an equity hedge amid massive outflows from bullion ETFs into assets like Bitcoin. With the price of gold down more than 11% over the last six months, some investment managers are questioning its status as a hedge asset.According to Bloomberg, Russ Koesterich, portfolio manager at BlackRock’s Global Allocation Fund, gold is currently failing to prove its effectiveness as a viable hedge against inflation.Indeed, Koesterich countered the popular hedge asset narrative for gold, stating, “Gold’s ability to hedge against inflation has....
Bitcoin’s status as an inflation hedge has come under scrutiny in the current market, but experts point toward the exceptional market conditions. Bitcoin has been projected as many things since its inception in 2009. However, the most talked about aspects have been a fungible form of future money and an inflation hedge.The last Bitcoin (BTC) halving cycle (a block reward halving event that happens approximately every four years) coincided with the raging COVID-19 pandemic, which solidified many people’s belief in the nascent tech as a true hedge against inflation and worldly disorders. One....
Goldman Sachs’ head of commodities research calls bitcoin “the retail inflation hedge” and likens the cryptocurrency to copper. He says gold and bitcoin can co-exist and does “not see bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.” Goldman Sachs on Bitcoin, Gold, Copper, and Inflation Hedge Jeff Currie, global head of commodities research at Goldman Sachs, revealed his outlook for bitcoin, gold, and copper on Thursday. Commenting on the recent surge in bitcoin’s price, he said on....
Inflation eats into your savings, reducing the value drastically over time. Is Bitcoin a good inflation hedge? Does Bitcoin work as a hedge against inflation?Statistics reveal Bitcoin has worked wonderfully well against inflation, much better than assets such as gold, real estate and stocks.As an asset, Bitcoin works amazingly well against inflation and beats it by a big margin, though you should be careful about extraneous factors like the regulatory environment. Statistics reveal that the odds are much better while storing value in Bitcoin than assets like gold, real estate, stocks and....