Are Cryptocurrencies A Hedge Against Inflation? Not So Far

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by confoundedinterest17

There is a lot of noise about cryptocurrencies like Bitcoin and Ethereum being hedges against inflation.

Here is Bitcoin against core PCE prices YoY. Only if inflation is truly transitory and declines.

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Ethereum as a hedge against inflation? Ethereum started its run-up after Q1’s inflation report. And has experienced extraordinary volatility, not inflation-hedging mojo.

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In short, Bitcoin’s and Ethereum’s inflation hedging mojo isn’t working. At best, it’s muddy.

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