1) ok so I'm confused, people were saying BTC wasn't an inflation hedge
the evidence: when expectations of interest rates went up, BTC went down.
that's... how a hedge works?
If anything the weird part has been how much of an inflation hedge *everything* has been
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BTC went up when inflation went up
BTC went down when rates went up
rates went up *because* of inflation going up, but were meant to *decrease* inflation
I think you're confusing the direction of causation here
Fed hasn't raised rates yet but 10 year has been climbing..
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You expect a perfect daily correlation? Lol. Zoom out man
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Okay zoomed out been 3 months since the expectations adjusted. Looks pretty correlated over 90 days. And before that pretty correlated for 650 days.
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BTC is less an inflation hedge, more a fiat currency debasement hedge. The ultimate bull case for Bitcoin will be a growth slowdown and disinflationary environment forcing the Fed to engage in QEternity
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Sorry if I ask a dumb question, but isn't inflation and fiat debasement the same thing?
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The thing is, in MMT, rate increase causes inflation. They’re using old models and are completely wrong. Plus inflation is caused by lack of supply, not increase in demand. Has nothing to do with interest rates.
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What is MMT? I don't see how making borrow money more expensive is necessarily going to cause inflation. Would you mind elaborating a bit on it? Seems an interesting paradox.
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