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Is Bitcoin a Good Inflation Hedge?

TheMotleyFool

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One of the common investment theses behind Bitcoin (CRYPTO: BTC) is that it's a great hedge against inflation. There are only 21 million Bitcoin available once they're all mined, limiting supply. In theory, this limited supply should mean that Bitcoin is a good hedge against the increased supply of the U.S. dollar.

This theory comes into question when we look at the data about Bitcoin's price trends and real inflation. Does Bitcoin really trade as an effective hedge to inflation, or is there something else to its moves?

Image source: Getty Images.

Source Fool.com

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