This article was originally published by Austin Litman on Proofofwork.ca
I was friends with someone who always said, “Bitcoin failed. It was supposed to be an inflation hedge.” He said this to me in 2018, 2019, and 2020 and is thinking about it now. I just learned how to reply to this person.
It was an obvious realization, and I don’t know why it took so long. There was never high inflation until now. The average inflation rate between 2008 and 2020 was 1.7%. The average inflation rate last year was 4.7%, and it’s 8.3% this year so far.
This is Bitcoin’s first test. My old friend needed to understand that we were not in an inflationary environment to test Bitcoin properly at the time. But we are now.
Will it go down or up in the short term? If you are asking this question, you should not buy Bitcoin, and you should do research.
