Cryptocurrencies are becoming increasingly dependent on the macroeconomic environment of which they inevitably become a part. Unfortunately, current inflation rates in the United States, Europe, and many other countries around the world make this environment hardly encouraging for investment. However, the specter of recession, rising consumer prices, and loss of purchasing power by fiat are causing investors to seek an escape from inflation.
For years, there has been a strong narrative describing Bitcoin (BTC) as one of the best hedges against inflation. The parabolic rise of cryptocurrencies combined with the increasingly weakening purchasing power of fiat currencies only added fuel to this interpretation. However, the argument strength of advocates of the oldest and largest cryptocurrency has weakened in the trajectory of the year-long bear market.
Can the thesis that Bitcoin is an inflation hedge still be defended in 2022? Does…
