Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Is Bitcoin Really A Hedge Against Inflation?

By Candy MathesonCryptocurrencyJan 26, 2022 12:09AM ET
www.investing.com/analysis/is-bitcoin-really-a-hedge-against-inflation-200615973
Is Bitcoin Really A Hedge Against Inflation?
By Candy Matheson   |  Jan 26, 2022 12:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Short answer...NO...in spite of what those flogging its purchase over the last couple of years have been, and still are, proclaiming (and with a straight face, too).

Take a look at the following weekly chart of Bitcoin and compare its price moves (peaks and valleys) with that of the 20-year 12-month Percentage Change, CPI graphic below (measuring inflation of goods and services).

While CPI has continued to rise since January of 2021 and hit a 12-month percentage increase of 7% in December 2021 (a 20-year high), Bitcoin has lost almost all of its gains made (twice) from January 2021, onward.

So...NO...Bitcoin is not a reliable hedge against inflation...case closed.

These graphics proved my point.

I've written numerous articles about Bitcoin over the last several years and you can find them this link.

BTC/USD Weekly Chart
BTC/USD Weekly Chart

CPI 12M Percentage Change
CPI 12M Percentage Change

Source: U.S. Bureau of Labor Statistics

Is Bitcoin Really A Hedge Against Inflation?
 

Related Articles

Is Bitcoin Really A Hedge Against Inflation?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Tyler Dunlap
Tyler Dunlap Jan 26, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't mean to be disrespectful, but you are a dinosaur, Cathy.  How on earth can you possibly make this claim about bitcoin when you and your generation are simply unable to comprehend how bitcoin and blockchain based currencies work?  It's not the 1950's anymore.  Reagan is gone.  Times have changed.  Technology has passed you by.  You don't know what you're talking about.  Case in point: you say that bitcoin has not kept up with 7% inflation and then post a graph showing a 10,000% price increase.  Are you able to understand that being a "hedge" against inflation is a long term thing?  It's not simply that you point to one screenshot at one point in time and then declare SEE I TOLD YOU SO.  It's actually embarrassing to read, and frankly, the more your generation and our decrepit government leaders bleat on about how worthless bitcoin is, the more younger generations buy.
Anonymous Anonymous
Anonymous Anonymous Jan 26, 2022 3:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
marco pagliacci
marco pagliacci Jan 26, 2022 3:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
... "Viewing the world through a straw..."
Krunoslav Kralj
Krunoslav Kralj Jan 26, 2022 12:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How about PAXGLD crypto?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email