Opinion
[1]On a zoomed-out scale, the U.S. dollar has been rapidly inflating against bitcoin since the time one bitcoin reached parity with one dollar in 2011.
On a zoomed-out scale, the U.S. dollar has been rapidly inflating against bitcoin since the time one bitcoin reached parity with one dollar in 2011.
It is my fervent wish that hyperinflation never reaches our shores. The probability that we will avoid that outcome is extremely slim. Put another way, our chances of experiencing hyperinflation are extremely high; the only question is timing. When will it happen? Many hope it’s a long way off. Some believe it’s here already and has been for quite some time.
Some argue that hyperinflation is already here in real estate. Many Americans (and other people around the globe) are feverishly overpaying for real estate that, in some areas, is causing housing prices to nearly double in just one year. I don’t mean to be a buzzkill, but no, the value of your home didn’t just double in a year. Your currency is rapidly inflating against a hard asset like real estate. Are there other signs?
Is Bitcoin An Inflation Hedge?
There are plenty of people saying bitcoin isn’t an inflation hedge. They point to last year of record amounts of inflation while the bitcoin price has remained about the same or has moved lower since November. How can that be?! Well, the only people who try to measure inflation month-by-month or a year at a time are central bankers and people who operate with high time preference. Is that you? If so, zoom out!
Let’s make a fair comparison of the U.S. dollar and bitcoin since the day they reached parity. Most people including Bitcoiners have no idea when that happened. Do you? A quick
