Is Bitcoin really an inflation hedge?

Bitcoin Works as an Inflation Hedge Despite Poor Price Performance in 2022, Says Steven Lubka, Managing Director of Private Clients at Swan Bitcoin.< /p> Cointelegraph YouTube Subscribe

Although Bitcoin (BTC) has failed to stave off runaway global inflation this year, it should still be viewed as an inflation hedge, says Steven Lubka, Managing Director of Private Consumers at Swan Bitcoin .

According to Lubka, Bitcoin works well as a hedge against rising prices when inflation is caused by monetary expansion. He is less effective when inflation is caused by the disruption of food and energy supplies, which he sees as the main cause of runaway inflation this year.

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“In a world where the price of goods is rising because there has been a drastic loss of abundance, Bitcoin is not going to protect investors from that,” Lubka said.

He also points out that Bitcoin is a better inflation hedge than stocks or real estate, as it doesn't need maintenance, nor is it affected by stock picking risk. of titles.

“Bitcoin does not present any of the risks that I have just identified as stocks or housing. It is a pure store of value,” he explained.

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