Whereas Bitcoin (BTC) has failed in countering this yr’s rampant world inflation, it ought to nonetheless be thought-about as an inflation hedge, says Steven Lubka, the managing director of personal customers at Swan Bitcoin.

In response to Lubka, Bitcoin works nicely as a hedge in opposition to rising costs when inflation is attributable to financial growth. It’s much less efficient when inflation is attributable to provide disruption of meals and power, which he sees because the main explanation for this yr’s rampant inflation.

“In a world the place the value of products goes up as a result of there’s been a radical lack of abundance, Bitcoin is not going to guard traders from that,” Lubka mentioned.

He additionally factors out that Bitcoin is a greater hedge in opposition to inflation than shares or actual property because it would not want upkeep, neither is it affected by the danger concerned in stock-picking.

“Bitcoin has none of these dangers that I simply recognized as shares or housing have. It is a pure retailer of worth,” he defined.

Try the full interview on our YouTube channel and don’t neglect to subscribe!