In 2009, when Bitcoin was first introduced, it was worth $0. It was traded for free initially between early adopters. However, as of now, it is priced at $62,713.80.

The value of Bitcoin has always been a topic of debate. Some experts have said that the crypto coin doesn’t have any intrinsic value and it is simply a bubble. However, some say that it is a good form of investment.

Bitcoin is an extremely volatile asset. It was designed to perform daily transactions that could seamlessly across national borders. However, many experts and investors believe that crypto coins are a better asset than Gold if one wants to hedge against inflation.

Bitcoin For Hedging Against Inflation

Recently, Paul Tudor Jones called inflation the single biggest threat to financial markets. The billionaire hedge fund manager said that he prefers digital assets over traditional hedges like gold.

JP Morgan also mentioned that institutional investors appear to be returning to Bitcoin as they perhaps see it as a better inflation hedge than gold.

However, some experts have a different view. Ex-RBI Governor Raghuram Rajan termed Bitcoin a ‘classic bubble’ that produces no value.

Bitcoin has gone through several boom and bust cycles, but ultimately, investors still have bullish sentiment. 

If we talk about figures, the 10-year ROI (Return On Investment) of Bitcoin is more than 457,703%. However, for Gold it is has been around 0 percent, according to AMBCrypto.

In spite of the crypto coin providing such enormous profits, it is ultimately speculative. A large number of crypto market participants rely on Elon Musk’s tweets as his tweets do influence the markets.

Although data shows that Bitcoin is better in terms of hedging against inflation than Gold, its price can plunge since it has no intrinsic value. Bank of England Governor Andrew Bailey said that investors may lose all their money as cryptocurrencies have no intrinsic value.