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Title: bitcoin to hedge against inflation? Post by: pennytrader on July 05, 2011, 02:27:59 PM I sold 2/3 of my bitcoins (after 1 month mining), I'm debating whether I should continue to sell the rest.
The basic argument here I see is bitcoin is better than USD because its supply is limited and won't expand. In other words, a lot of people hold bitcoins to hedge against USD inflation (at least that's one of the many reasons). So my question is if bitcoin/USD exchange rate continues to fall or even remaining constant, does it mean bitcoin is also being inflated (even without the increase of its total quantity)? I can understand how gold or even real estate can hedge against inflation because they have real value. For bitcoin, it's just another currency whose value is yet to be determined... |