Data doesn’t show Bitcoin as an inflation hedge at present, according to Chainalysis

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Knowledge from blockchain analytics agency Chainalysis means that Bitcoin (BTC) is probably not the hedge against inflation that many seem to believe it is.

“Proper now, we will not present a statistically vital correlation between inflation within the US and Bitcoin costs, however we all know anecdotally that many individuals put money into Bitcoin as a hedge towards inflation,” Chainalysis’ head of analysis, Kim Grauer, advised Cointelegraph on Aug. 31 when requested about her ideas on present inflation within the United Stat and its impression on Bitcoin.

U.S. inflation has been a scorching subject over the previous yr or two. Again in June, stories confirmed that inflation within the U.S. was reaching levels unseen in over a decade.

Different nations have skilled a lot worse inflation than that seen in the US. Venezuela, for instance, noticed 10,000,000% inflation in 2019. Interest in digital assets grew in tandem.

“We additionally know that in different nations that undergo from extra extreme foreign money inflation or devaluation like Venezuela and Nigeria, folks use cryptocurrencies as a retailer of worth,” Grauer added.

Bitcoin is usually described as a store of value asset within the crypto business despite the fact that logically, occasions comparable to the price crash earlier in 2021 name that narrative into query.