First, why did the inflation hedge thesis lose credibility? Well, folks noticed inflation rising quickly in late 2021 and early 2022, simply as bitcoin’s value shortly fell. Ergo, bitcoin wasn’t an inflation hedge. Many critics of Bitcoin loved carping about this, and the tl;dr of all of their articles and interviews was “I told you so.” But some bitcoiners, corresponding to Steven Lubka, held to their conviction. We had been experiencing value inflation as a result of systemic provide chain shocks brought on by numerous elements, significantly the world reopening following COVID-19. There was no financial inflation, and so, the concept bitcoin might act as a lifeboat amid the devaluing of the U.S. greenback might nonetheless maintain true.
