Johnny Bball wrote:BlackThought wrote:Johnny Bball wrote:
There's no chance its an infationary hedge since most of its drop was when rates were going up the most.
On May 10th of 2020
Gold was $1704 per ounce
Bitcoin was $8756 per coin.
March 20 of 2023
Gold is $2003 per ounce
Bitcoin is $28000 per coin.
Neither are great inflation hedges but since the covid situation that led to this entire inflation problem, you would be better off holding bitcoin than gold.
Well since the beginning of covid wasn't the beginnning of inflation, this really isn't, in any way, meaningful. I could have bought AMD or any meme stock at the start of covd and sold it high and made a ton. AMD is not an inflationary hedge.
I mean when they started handing out free money that's usually when you start worrying about inflation. You're not going to buy assets at peak inflation to hedge inflation. That's not how any of this works.
You could've bought bitcoin for under $10,000 up until late September of 2020. If by that time you still haven't realized that inflation could be an issue, it's tough luck my friend, some people are destined to be f'd. The first stimulus checks were handed out in April of 2020, so even if you are slow, that's like almost half a year of reaction time.
Compare to any asset bought at around that time, bitcoin is right up there along with any other asset in terms of hedging inflation, no sell high needed.