Is Bitcoin a Hedge Against Inflation?

Are you tired of hearing about inflation? Well, the most recent set of statistics shows that while inflation is slowing, sitting at around 8% today, it's not slowing at the rate expected and is still a long way from where officials want it to be. And as long as inflation remains high, markets will likely struggle as investors look to reduce risk in their portfolios.

First, let's discuss the problem with inflation. When inflation is high, you lose purchasing power. The increased supply of money causes goods and services to cost more. This means you aren't as likely to save as much, and the dominoes then begin to fall from there.

So, what assets are inflation proof or at least inflation resilient? One that might come to mind is Bitcoin (CRYPTO: BTC), the most valuable cryptocurrency today. It has been touted as a hedge against inflation since it was created in the aftermath of the Great Recession in 2009. Yet, Bitcoin has shed nearly 70% in the last year -- not that great of a hedge it seems.

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Source Fool.com