Fidelity believes that the best way to understand ‎#البيتكوين is as a hedge against monetary inflation, not just against the Consumer Price Index (CPI) inflation.



Inflation primarily starts from an expansion in the money supply.

Asset inflation and consumer price inflation are subsequent results of that.

Their research has found an 87% correlation between the expansion of the global money supply (M2) and the price of Bitcoin over the past fifteen years.

Although critics pointed out Bitcoin's decline during the CPI increase in 2022, Fidelity explains that the CPI reflects the past, while markets look to the future.

When inflation expectations rose, Bitcoin rose with them.

The real takeaway is that the true hedge against ‎#التضخم is not something that tracks the CPI index accurately month by month.

Rather, it is something that preserves and increases purchasing power over time.
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GateUser-28ca7eb3
· 5h ago
Buy the dip 😎
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