Bitcoin is a store of value, but it is not an "inflation hedge" today.This is because inflation is also being accompanied by a stronger dollar.The better inflation hedge/store of value could be Ethereum since it will soon become a deflationary cryptocurrency.If Bitcoin is digital gold, Ethereum is digital oil.Thesis SummaryInflation has taken its toll on the stock market and led many investors to seek refuge in inflation hedges. Bitcoin (BTC-USD) has been touted by many as an inflation hedge, given its scarcity, but its performance appears to be much more closely tied to stocks than commodities like gold.For various reasons, Bitcoin is a must-own, but it will not act as an inflation hedge right now, especially with a rising dollar.Furthermore, I propose that there is an even better hedge against inflation in the realm of cryptocurrencies, and that is Ethereum (ETH-USD)The Bitcoin Inflation Hedge DebateBitcoin has been made to mimic gold in many ways. The supply is increased by “mining”, a slow process that gets harder over time. Like gold, the supply of Bitcoin is finite, although arguably there are still chances of discovering more hold, while 21 million Bitcoin is all that will ever exist.With that in mind, people often believe that Bitcoin should act as an inflation hedge since gold is perceived as an inflation hedge. However, Bitcoin has been trading much more in sync with the Nasdaq 100 (NDX) and “risk-on” assets. BTC an...
