Strawberry Blonde's Market Summary: Is Bitcoin Really A Hedge Against Inflation?

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Tuesday, January 25, 2022

Is Bitcoin Really A Hedge Against Inflation?

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 at this link.