Bitcoin is loved by so many, but also hated by others. Despite the massive volatility that we’ve been seeing into the crypto market lately due to the enormous FUD that’s been going on in the crypto space, BTC adoption continues and the king coin is maturing as it should.
At the moment of writing this article, BTC is trading in the red and the coin is priced at $32,862.36.
Bitcoin is maturing into a real asset and the digital coin is fulfilling its inflation hedge role.
Data suggests that #Bitcoin is beginning to fulfil this inflation hedge role. Observing Bitcoin’s price changes relative to changes in inflation shows that this relationship is becoming statistically significant. https://t.co/XRp0xXplPZ pic.twitter.com/LIz4RthM3R
— unfolded. (@cryptounfolded) June 23, 2021
Coinsgares just dripped an article about this and they wrote that “Signs of a potential inflationary problem are beginning to reveal themselves, most notably the tightening employment conditions (and consequent rise in wages) coupled with rising producer prices across the globe.”
The same online publication continued and noted that “However, investors remain divided, with the outlook for inflation falling into two schools of thought: those that believe the inflation effects are more transitory in nature, and those that see inflation rising to a point where it threatens economic stability.”
BTC is a hedge against inflation
Coinshares goes on with its analysis on Bitcoin and notes that it makes sense that BTC would be a hedge against inflation.
“It is what an economist would call a “real asset”—an asset of limited and predictable supply that is often priced in US dollars,” the online publication notes.
They continue and explain that if the supply of US dollars is rising, or that of any other fiat currency, then it is likely that BTC will appreciate against those currencies, and this will continue to happen even if its purchasing power were to remain stagnant.
Data suggests that BTC is definitely beginning to fulfil this inflation hedge role. Check out the complete analysis in the original article.