Inflation is here — could bitcoin be the solution?

Inflation is here — and it is higher than anticipated. Bitcoin offers a new means of hedging against inflation with many advantages: it is the first digital object of true scarcity capped at 21 million and it is deflationary in nature; implying its value will increase over time. Since bitcoin is also decentralized, it is not only a hedge against inflation, but also against social and political turmoil. Ultimately, institutional investors as well as retail investors are increasingly exploring alternative hedges and are considering bitcoin, should you?

What is inflation?

Figure 2: Zimbabwe’s one hundred trillion dollar note⁹

Current State

Figure 3: M2 money stock chart¹³

Traditional hedging

Figure 4: Gold as a hedge against inflation¹⁸

Bitcoin as a hedge

Figure 5: S2F model by PlanB²⁵




21Treasury helps you to decrypt bitcoin along with other digital assets.