#BTCvsInflation :Evaluating Bitcoin’s Role as an Inflation Hedge As of February 10, 2025, Bitcoin (BTC) is trading at approximately $97,588, reflecting an increase of 0.01219% from the previous close. Bitcoin’s Fixed Supply: Bitcoin’s capped supply of 21 million coins is often cited as a key feature that could make it a hedge against inflation. This scarcity contrasts with fiat currencies, which can be subject to inflationary pressures due to increased money supply.  Volatility Considerations: However, Bitcoin’s significant price volatility raises questions about its reliability as a store of value. While it has delivered higher returns than assets like gold or equities, its price swings can be substantial, potentially undermining its effectiveness as an inflation hedge.  Empirical Findings: Research indicates that Bitcoin may not serve as an effective hedge against inflation. A study analyzing Bitcoin’s response to macroeconomic news found that its price decreases in response to unexpected inflation increases, which is inconsistent with the behavior of traditional inflation hedges.  Conclusion: While Bitcoin’s fixed supply and decentralized nature present theoretical arguments for its role as an inflation hedge, empirical evidence and its inherent volatility suggest that it may not consistently protect against inflationary pressures. Investors should carefully consider these factors when evaluating Bitcoin’s suitability for this purpose. Note: This information is for educational purposes and should not be considered financial advice. $BTC $ETH