BTC performs better against inflation than gold

BTC is a better hedge against inflation

In fact, gold was worth about $ 1,960 an ounce last year, while it has now dropped just above $ 1,800. In other words, it has lost almost 10% in the last 12 months. In fact, until the end of March, the loss was even greater (-14%), but then the gold recovered a bit.

BTC, on the other hand, was worth about $ 11,000 last year and is now around $ 38,000, more than tripling. In April, it was even more than five times more expensive than 12 months ago.

Inflation in the US has been 5.4% over the last 12 months and began to rise in February. In fact, it was below 1.5% by January, but rose to 1.7% in February, with growth accelerating since March and then exploding in April.

If we look only at the last six months, ie. From February to June, the price of gold fell overall by 1.4%, albeit first with a sharp decline until March, and then with a sharp rise from April to May, followed by another decline.

On the other hand, the price of BTC has risen by 18% since February, albeit with growth until April, a sharp decline until 20 July and an increase since 21 July.

So whether we look at the last 12 months, the same period for which annual inflation is calculated, or just the last 6 months since the rise in US inflation, BTC is still beating gold by at least an order of magnitude.

Gold and BTC in times of crisis

However, it should be recalled that although both gold and BTC can be considered hedges against inflation, they differ financially in at least one respect: gold is considered risk-free, while BTC must, of course, be considered risky. As a result, gold is the preferred safe haven in times of crisis, while in times of growth, many investors focus on BTC due to its higher volatility.