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Only a fool or liar would ever tell you it's an inflationary hedge. It is an energy currency. It is directly driven by energy costs. Inflation always drives energy costs, even when the energy market is manipulated. Bit coins are in no way immune to inflation. They are directly hitched to energy markets. Worse, they are also driven by hardware and component shortages. Which are also driven by inflation. Bit coins are already hyper inflated.
https://poal.co/s/CRYPTO/526081/12700786-6c55-4016-82d5-e82d0525f1be#cmnts
news to me. everyone said it is an inflation hedge, because it is 'digital gold' or some shit.
Two things make bit coins. One, computers calculating. Two, the energy to power those calculations. The larger the number they are calculating the more energy it takes. Energy is their primary expense. It will always follow the cost of electricity.
Bit coin is a fossil fuel currency just like the USD. Though you can at least argue bit coins have a tangible cost. But at the end of the day, it's still backed by nothing. It's still fiat currency.
There's a reason the deep state is globally pushing digital currencies. In order to create appeal, you manipulate it to create a bubble. When ready, they can destroy everyone's "hedge."
I have a theory, let me know what you think. The "costs" of processing a cryptocurrency transaction ("mining") are heavily driven by energy and hardware costs. Both energy and hardware costs have increased dramatically, ergo it now costs more to process a satoshi moving from party A to party B. This is likely why cryptocurrency prices track energy and tech equities to a substantial degree.
Because the primary value proposition of cryptocurrency is future transaction processing and the associated ledger, when input costs for those future transactions increase, cryptocurrency prices fall. For the same reason that Visa's stock price would fall if its transaction processing costs dramatically increase. Because cryptocurrency is a future-facing transaction processor rather than a commodity stock like a barrel of oil, that's why its prices have fallen rather than risen in response to rising input costs.
TLDR: Cryptocurrency prices behave like "stock" in a transaction processing company like Visa rather than a commodity.
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