Billy Markus, Dogecoin’s creator spoke about his views on how crypto could be a hedge against inflation. He is of the opinion that this is just a marketing ploy, and most people would buy or sell crypto based on its value. The narrative on “inflation hedge” regarding the crypto market surfaced not too long ago when BTC, ETH and other cryptos were performing well. They were, in fact, performing better than traditional investments like stock and bonds.
The tendency of crypto to do so makes them the most perfect value vehicle, as fiat currency values have been going down. This sentiment is no longer valid after the market corrections in May and cryptos like LUNA and Terra dropping precipitously. In spite of the massive loss in value as well as decreasing value of almost all digital assets, most of them are still doing well. They are a better alternative as an inflation hedge compared to gold.
Unfortunately, a lot of investors and crypto holders learned about different digital assets long after the bull runs of 2017 as well as 2021. If anyone had invested in BTC during the hedge period, they would have 30% less in their kitty after the initial investment. This makes BTC and crypto not the best ways to deal with inflation. Billy Markus’ views on the value and nature of the market and crypto is on point. Most investors are not able to see crypto as a hedge against inflation and mostly deal with it as a tool to get exposed to market volatility.