Bitcoin's Potential as an Inflation Hedge: A Closer Look
ByAinvest
Tuesday, Dec 2, 2025 11:24 pm ET1min read
BTC--
Bitcoin could be a winner if inflation rises due to its capped supply and increasing scarcity, making it harder to dilute. Its protocol limits total supply to 21 million coins, with over 94% already mined. Additionally, a large portion of coins are lost or inaccessible, and ownership is concentrating in slower-moving hands. This setup could lead to outsize price moves if investors seek a non-fiat store of value during inflationary periods. However, Bitcoin is not an ideal inflation hedge due to its lack of a long track record.
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