U.S. inflation breaks 40-year record: Can Bitcoin serve as a hedge asset?
Many have likened BTC’s anti-inflation properties to those of gold, but there are important differences between the two assets. On Feb. 9, the United States Bureau of Labor Statistics reported that the Consumer Price Index, a key measure capturing the change in how much Americans pay for goods and services, has increased by 7.5% compared to the same time last year, marking the greatest year-on-year rise since 1982. In 2019, before the global COVID-19 pandemic broke out, the indicator stood at 1.8%. Such a sharp rise in inflation makes more and more people consider the old question: Could....
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One of bitcoin’s main selling points has been the fact that its return has often put it ahead of the inflation rate. Due to this, it has gained notoriety as the “digital gold” as a good portion of the community put forward that the digital asset is a better inflation hedge than any asset. However, […]
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....
The argument for Bitcoin as an effective hedge for inflation has been a long one in the making and so far, the digital asset has not failed those who have a stake in it. Bitcoin’s returns over the past couple of years have been far greater than the rate of inflation, which currently sits at […]
The Skybridge Capital CEO said Bitcoin needs much more proliferation before it can act as an inflation hedge. Skybridge Capital CEO Anthony Scaramucci believes that while Bitcoin continues to be an attractive asset, it has not reached the “wallet bandwidth” that is required for it to be considered an inflation hedge. Speaking on CNBC’s Squawk Box on Aug 22. the global investment management CEO said Bitcoin was still too much of “an early adopting technical asset” which would need to be held in around a billion wallets before it would begin to act as a hedge against inflation.“Until you get....
Bitcoin has seen another red daily close after a tremendous rally from last week. This has now wiped off most of the gains made during this time period and has left the digital asset struggling below $23,000 once more. The momentum has quickly died down as the news of the recession settled in. Its viability as an inflation hedge is once more called into question given its performance so far this year. Is Bitcoin Still A Good Bet? Bitcoin being an inflation hedge, has been one of the selling points for the digital asset. This is due to its performance on a year-over-year basis compared to....