Although Bitcoin ( BitcoinTC has not been able to counter this year’s rampant global inflation, it should still remain an inflation hedge according to Steven Lubka, Swan Bitcoin’s managing director for private consumers.
According to Lubka Bitcoin is a good way to hedge against rising prices in times of monetary expansion-driven inflation. It’s less effective when inflation is due to disruptions in the food supply or energy, which Lubka considers the main cause of the year’s rapid inflation.
Lubka stated that Bitcoin won’t protect investors in a world where goods are more expensive because of a drastic loss of abundance.
He also pointed out that Bitcoin is an even better hedge against inflation than stocks and real estate, as it doesn’t require maintenance nor is it subject to the stock-picking risk.
“Bitcoin does not have the same risks as housing or stocks. He explained that it is a pure storehouse of value.