3 ms·
Why not TIPS, gold, real estate or basic material stocks? Bitcoin seems to be the most insane choice for inflation hedging. It may be a good trade, but not for
by H8crilA 6y ago
Why not TIPS, gold, real estate or basic material stocks? Bitcoin seems to be the most insane choice for inflation hedging. It may be a good trade, but not for the reasons you've listed.
(not to mention that so far there has been absolutely no broad inflation almost everywhere around the world, though this can of course change)
- onlyrealcuzzo 6y agoI love that BTC is supposed to be correlated with inflation - when if you take one second to look at the price chart - it obviously has no correlation with inflation whatsoever.
- rualca 6y ago> I love that BTC is supposed to be correlated with inflation Is it really? BTC is renowned for being systematically and thoroughly manipulated. It makes no sense to expect any correlation that is based on the assumptions of a free market.
- H8crilA 6y agoWell, to be honest there hasn't been any serious inflation in any developed country since ~2009, since Bitcoin was created. Gold is short term pretty much uncorrelated with anything, but long term keeps up with CPI very well. Even on extremely long time scales, several centuries.
- ed25519FUUU 6y agoA house is a pretty good hedge against inflation. You can sleep in it during the night and grow veggies outside it during the day. The only downside is you can sell a small portion of your house.
- latchkey 6y agoHow is that any different than getting an equity loan?
- ed25519FUUU 6y agoThe terms are not good on those loans when there’s strong inflation.