Bitcoin's Inflation Hedge Claim Debunked by Expert

The idea that Bitcoin is an inflation hedge has gained traction in recent times. With inflation rising after the war with Iran began on February 28, some proponents of cryptocurrency pointed to its fixed supply as a reason why it could protect against inflation.

However, Paolo Pasquariello, professor of finance at the University of Michigan, disagrees. He claims that there is little evidence to support the notion that cryptocurrency will provide protection against inflation.

Pasquariello believes that cryptocurrencies are speculative and have no intrinsic value. They have not yet achieved universal adoption as a means of payment, and most people still receive their salaries in fiat currency and pay for goods and services with it too.

He warns that buying cryptocurrency as an inflation hedge is a risky move and could lead to significant losses when the economy takes a downturn.