Bitcoin Is Not Currently A Hedge Against Inflation, Chain Analysis Says – Bitcoin – United States Dollar ($ BTC)
Blockchain analysis firm Channel analysis did not find a “statistically significant correlation” between Bitcoin (CRYPTO: BTC) and inflation in the United States
What happened: Kim Grauer, head of research at Chainalysis, said Co-telegraph the firm could not find data to support the thesis that Bitcoin is a hedge against inflation.
“At this time, we cannot show a statistically significant correlation between inflation in the United States and Bitcoin prices, but we know anecdotally that many people invest in Bitcoin to hedge against inflation.” , said Grauer.
Many supporters of the crypto market have argued that Bitcoin offers the ideal protection against fiat currency degradation – some even to suggest the main crypto asset replaces gold in this role.
Taxation is theft.
Inflation is theft.
– Dan Held (@danheld) September 20, 2021
The main idea behind the argument is that Bitcoin has a programmed maximum supply capped at 21 million coins, making it a rare and provable digital asset.
In fact, a Mizuho Securities investigation earlier this year found that up to $ 40 billion in stimulus checks may have been invested in Bitcoin and stocks.
Yet even amid concerns about excessive money printing causing inflation to rise, the data doesn’t appear to show significant evidence that Bitcoin is in fact being used as an inflation hedge just yet.
#Bitcoins is not yet proving to be a timely inflation hedge: Core CPI surged from March to June (+ 1.6% yoy to + 4.5% yoy), but Bitcoin has fallen by around 50%… Bitcoin has risen by around 60%
[Past performance is no guarantee of future results] pic.twitter.com/rFAEcJi0Wx
– Liz Ann Sonders (@LizAnnSonders) September 15, 2021
BTC Price Action: Bitcoin was trading at a price of $ 43,088, up 0.17% on Tuesday morning.
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