Bitcoin has been touted as a hedge to inflation because it's a deflationary system, but recent price action calls the idea into question.However, arguments for and against Bitcoin as an inflationary hedge fall on their face, some for the same reason.The truth is, there's not enough data to prove it is or isn't a hedge against inflation like gold is, but Bitcoin's success is not predicated on this.After publishing my article on Bitcoin (BTC-USD) two weeks ago, a few commenters mentioned how this latest Bitcoin crash was different. And this difference made all the difference and, therefore, there would be no next time. The difference at play was Bitcoin crashed during a high inflation environment. The idea swirling around the crypto fan club was Bitcoin was an inflationary hedge and should perform well during periods of high inflation. However, this was a poorly constructed argument perpetuated by banks wishing to sell a trading product. Bitcoin doesn't need to be a hedge against inflation to continue working and reach its next move higher.Back To BasicsAt its core, the inflation-protection idea comes from, at least in part, the idea Bitcoin is a deflationary asset.What does this mean?It means the supply of the asset is limited and, in its fundamental workings, diminishing. It accomplishes this by having a fixed supply - 21M coins. Theoretically, getting to this number becomes increasingly more challenging as time goes on, creat...
