#CryptoCPIWatch ! The impact of inflation on cryptocurrencies!
Thesis in favor of cryptocurrencies being a hedge against inflation:
- Cryptocurrencies like Bitcoin have a limited supply, making them resistant to inflation.
- The decentralization and independence of cryptocurrencies make them attractive as a way to protect value against inflation.
- Some cryptocurrencies, like Bitcoin, have proven to be an effective way to protect value against inflation in the past.
Thesis against cryptocurrencies being a hedge against inflation:
- Cryptocurrencies are volatile and can be influenced by external factors, making them risky as a means of protecting value.
- The lack of regulation and uncertainty about the future of cryptocurrencies make them unreliable as a hedge against inflation.
- Cryptocurrencies do not have intrinsic value and their value can fluctuate rapidly.