Bitcoin is often seen as a tool to combat market instability and inflation. Here is the relevant analysis:

Characteristics of Bitcoin

Scarcity: The total supply of Bitcoin is limited, with a maximum of 21 million coins that can be issued, which gives it anti-inflation properties and prevents it from depreciating due to excessive money supply.

·Decentralization: Bitcoin is not controlled by any central institution or government, and its value is not affected by changes in monetary policy. In cases where the currency is unstable or there are capital controls in some countries, Bitcoin becomes a safe haven for funds.

Market Performance

Price Volatility: Although Bitcoin's price is highly volatile, in the long term, its price generally shows an upward trend. During periods of market instability, Bitcoin's price sometimes experiences significant increases, attracting investors to view it as a safe-haven asset.

Comparison with Gold: Bitcoin is often referred to as "digital gold" and like gold, during times of high inflation, Bitcoin is also seen as a means of storing value.