Economists talk about “inflation expectations” because what happened in the past and what we expect for the future are two different things. If you’re making some kind of financial decision, you have to assume what inflation will be going forward.
As we all know, an inflation hedge is an investment that is considered to protect the decreased purchasing power of a currency that results from the loss of its value due to rising prices.
For many years people have used gold as an inflation hedge, but now gold is losing this status. The precious metal hasn’t produced a positive return during periods of consistent inflation since the 1970s. Inflation climbed at the highest year-over-year rate since 1982 (a 7.5% year-over-year number), gold has only risen by about 1%.
Some economists and investors don’t think gold is a great hedge at this point and frankly, bitcoin would look better. Why?
Bitcoin isn't tied to any currency, small group, company, or economy.
It means Bitcoin isn't controlled by a small group of politics, governments, companies, or stakeholders.
Bitcoin could be one of the better assets because it sidesteps many of the political and economic risks associated with the U.S. stock market or EU. In this vein, Bitcoin and other cryptocurrencies are one of the most practical and simple ways for an investor and a household to diversify away from purely revenue, income, and assets.
Bitcoin has a limited supply.
An ironclad fixed supply means that new coins can't enter circulation, so there's no inflation risk. It makes Bitcoin a better inflation hedge than other cryptocurrencies is due to its fixed supply of 21 million coins, nearly 19 million of which have already been mined. By contrast, the global gold mining market is growing. Also, any country can just increase the money supply through government bonds.
Bitcoin is an easily transferable store of value
Some people could argue that gold has intrinsic value as a precious metal and Bitcoin is just a fake currency.
But the truth is Bitcoin is durable, easily interchangeable, secure, and scarce. Unlike gold, Bitcoin is also portable, transferable, and decentralized. Anyone in the world can store and easily protect their Bitcoin much easier than gold.
Also, Bitcoin's blockchain technology has practical use cases.
If you have savings, you should buy Bitcoin to protect them. But buying crypto seems a challenge, especially for non-tech persons. Crypto experts recommend using crypto exchanges.
Crypto exchange is a secure platform where you can buy and sell cryptocurrencies. To avoid scams ‘you should use only legit platforms like EvBlock. Visit https://evblock.com/ to make sure.