Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: cryptoworld1 on September 11, 2023, 07:39:28 AM
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In order for Bitcoin to be a hedge against inflation similar to gold and real estate, it needs several important characteristics of a store-of-value. Broadly speaking, a store of value is any object that retains purchasing power into the future, and can be readily exchanged for something else. In other words:
A store of value should be worth the same or more over time.
A store of value must be exchangeable with something else (like gold, or dollars).
Zero or low supply increases over time.
Bitcoin and fiat currencies meet the first two criteria, but differ on the last. Fiat currency’s supply can be increased drastically with the push of a button, leading to each unit of currency devaluing. Take the U.S. money supply compared to Bitcoin’s fixed supply:
(https://www.bitcoin.com/images/uploads/get-started-money-supply.png)
VISIT HERE: https://www.bitcoin.com/get-started/is-bitcoin-an-inflation-hedge/ (https://www.bitcoin.com/get-started/is-bitcoin-an-inflation-hedge/)