Oct. 21, 2021: Nothing Lasts 📉 🪦️

Why Bitcoin is not a Long-Term Hedge Against Inflation

As Bitcoin celebrates all time highs, it’s time for a dose of cold water. Bitcoin maxis like to tell tales of 1 Bitcoin being all you need to secure generational wealth, and its sound monetary policy making it a perfect hedge against inflation.

For starters, there’s not a ton of statistical evidence for any relation between BTC price and inflation moves. Back when we had more time to run such in-depth statistical analyses we covered this in depth. Little has particularly changed. While inflation soared since we published this, bitcoin went up a lot, but it also went down a lot, so statistically it stayed a bit of a wash. No particular correlation.

That said, we do believe in the short term, Bitcoin and other cryptocurrencies are your only hope. Dollars are becoming worthless at an eye-popping rate, so you have no choice but to put them into moonshots: cryptocurrencies, stocks, property. They’re necessarily Hail Mary plays. Unfortunately with the present misapplication of MMT debasing the collar, doing nothing isn’t an option.

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Another scam. If inflation is 6 percent it means you have to increase your income by about 8-9 percent because inflation is post tax expenses. Hint: inflation is really double digits not the fake CPI number.

Frens, we’re sad to say that nothing will make you safe in the long term. Nothing lasts…