The fight of our lifetime: Yes, Bitcoin is an inflation hedge - but it is also much, much more
With Bitcoin we have a system that is run by the people for the people, completely bypassing the broken legacy system that centralised power in the hands of the few.
I don’t even know where to start.
Right now, everything is breaking.
The Bank of England entered the market in a big way to bail out pension funds. The Bank of Japan is doing what the Bank of Japan is doing best, manipulating right, left and center.
The ECB is starting one stupid thing after another, trying to fine tune the economy and virtue signal at the same time. (They are now discriminating against companies with a bad “climate score” when they buy bonds, which they shouldn’t be doing in the first place anyway.)
There is rumours going around about major investment banks failing. Inflation just breached 10 percent in Germany and Austria - the highest number for decades. Energy prices are still insane. Markets are on their way down.
And I have to read hundreds of articles on how Bitcoin is using too much energy and how Bitcoin failed as an “inflation hedge”.
I can’t even.
But I must.
So here we go.
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Bitcoin very much is an inflation hedge
Bitcoin has NOT failed as a hedge against inflation. Not even if you take the simplest definition of a “hedge”. The price is up 37% from the highs of June 2019. That doesn’t sound like much but it sure is enough to “hedge” against inflation in USD and EUR terms.
Of course, Bitcoin is up 422% since the lows of March 2020. It has reacted perfectly to the monetary debasement that followed.
In Turkey, where Erdogan is still lowering rates to fight inflation (because why not), Bitcoin is up 1500% since March 2020.
Yes, it is true: If you want a slow but stable “inflation hedge”, you could have used gold. Bitcoin’s price is still very volatile and the recent correlation to tech stocks has to be factored in. But while gold is close to an all time high vs. the Turkish Lira, it has only gone up by about 30% since the crash of March 2020.
But this isn’t even half the story.
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A system run by the people for the people
Bitcoin is much more than a hedge against the falling purchasing power of money. It’s a hedge against the root of inflation and monetary debasement. Bitcoin is the first and only weapon against the corruption of money by the state, elites and bureaucrats.
Bitcoin is fixing a problem that is literally thousands of years old.
With Bitcoin we have a system that is run by the people for the people, completely bypassing the broken legacy system that centralised power in the hands of the few.
If you buy 1 Bitcoin today, you get one of 21 million. Your piece of the pie can never be diluted by money printing, it can not be taken away by force, it can not even really be taxed against your will.
Fix the money.
The fight is only starting
Inflation (the debasement of money by the ruling elite) has plagued humankind for millennia. Bitcoin has a fixed supply that cannot be tampered with. In time, it will force society to rethink everything and everything will be better for it, because Bitcoin destroys the main tool of control (enslavement really).
Inflation hedge? Give me a break! Yes it is an “inflation hedge”, but Bitcoin is so much more. It’s a revolutionary technology that will enable us to go forward and leave behind the wreckage of the monetary system hampering us no much today.
Of course, that is the reason we see so much pushback already. Central Bankers are waking up to the fact, that they have been made obsolete.
Christine Lagarde has just recently warned of a “new era of free banking”. Now they are introducing “climate scores” - all the while the media is fed propaganda on Bitcoins “energy consumption”. Expect this fight to heat up.
But here is the beautiful thing: We have nothing to lose.
On the current trajectory we are going into an age of misery and control, an electronic prison run by lunatics who think they are smarter than anyone else. It’s not a future worth living in; especially not now that we have an alternative.
This is the fight of our lifetime.
Best, Niko
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This post is sponsored by…
21bitcoin - The easy way to buy, sell, save and send Bitcoin.
21bitcoin is a Bitcoin-only app, not an exchange. No distraction, individual savings plan, very low fees, first class personal support, and a German bank account. Based in the Austrian Alps, available throughout Europe. Download now.