Yeah, the crypto market cap went up by 2 trillion in one year, then went down by one trillion the last week of that year.
No they are not an hedge against inflation.
Plus there’s nothing of intrinsic value there. They are a speculation medium, not a currency.
“They are only a hedge against the collapse of the US Dollar, not inflation.”
I don’t agree with that either. Like I said what backs up crypto? Nothing of intrinsic value. And coins like Doge are fiat because there is not a limit to how many can be “minted”.
At least with equities you are part owner in an actual company. With hard assets, there is the hard asset. With crypto there’s NOTHING.
And I’m not saying there isn’t money to be made, there is but it’s through pure speculation.
Context is important.
I bought my first bitcoin in 2013. I paid $110 per unit.
That unit is worth $36k and change right now.
My math might be off....but I think that beats inflation at about 73% per year.
During a similar period, my gold averages 4.27% per year. My silver averages 4.49% per year. My stock index funds are averaging 11.42%.
So, pretty much any investment (in a general sense) will increase ahead of inflation over time.
If you are simply looking at the past two weeks, Crypto is not keeping up with inflation.
You have to look at things in the proper context and time frame.
There is no underlying tangible commodity to cryptocurrencies. A better hedge against inflation would be a tangible commodity that will remain in high demand thru inflation and into recession.
Many crypto’s have value, just because you don’t see the value of a network doesn’t mean it’s worthless. Last year I made a modest purchase of CargoX (CXO), that modest investment has, to date, been a 75x return. I guess the government of Egypt requiring it’s use for all import/export bill of ladings might have something to do with that. India is piloting the program currently, they could be next. Rumors are Singapore as well. I guess I’ll hold onto my “Worthless” Backed by “Nothing” investment that somehow isn’t a hedge against inflation based on an article that cherry picks data during a mid cycle shakeout.
Ping!
China has long been the world’s epicentre of bitcoin mining, an energy-guzzling process to secure the cryptocurrency network and mint new bitcoins via specialised machines known as “mining rigs”. According to the University of Cambridge's Centre for Alternative Finance, over 65 per cent of miners working on the bitcoin blockchain were based in China as of April 2021. But Chinese miners are now on tenterhooks following a top government official’s announcement, in a speech on May 21, that Beijing would start to “crack down on bitcoin mining and trading behaviour”.
The dollar will collapse because it is part of the financial control wielded by the Deep State. So will "fiat" cryptos like BTC.
Best thing to hold currently for safekeeping wealth, IMHO, are physical assets:
Physical precious metals (gold, silver, platinum, etc)
A crypto that is tied to precious metals (I don't own any, but grapevine touts XRP (gold), XFLARE (platinium), Algorand, XLM (silver), IOTA (Iridium).
Land, home, boat, airplane
They can’t control it.
If they could have shut it down, then they would have already.
The only way to shutdown Bitcoin is to shutdown the Internet.
That’s not happening.