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Crypto News - Posted on 04 September 2025 Reading time 5 minutes
Bitcoin Become a Strategic Choice Amid Rising Inflation?
The surge in global inflation, which continues to erode purchasing power and threaten economic stability, has sparked renewed interest in Bitcoin. The world’s largest cryptocurrency is once again being scrutinized for its potential: Can Bitcoin serve as a wealth protector amid financial turmoil, particularly as fiat currencies become increasingly easy to print without limit?
Bitcoin was designed with a maximum supply of 21 million coins. This fixed supply is often cited as an advantage that helps preserve asset value against the risk of devaluation caused by massive fiat money printing. In periods of high inflation, this scarcity becomes especially appealing to investors seeking a form of “digital store of value.”
Positive Outlooks from Experts
According to a CoinMarketCap report on Thursday (September 4, 2025), renowned investor Ray Dalio stated that Bitcoin’s scarcity makes it an attractive alternative, particularly when traditional currencies are losing value under inflationary pressure.
Empirical Data: A Hedge, But Not a Safe Haven
Empirical research indicates that Bitcoin tends to strengthen when inflation or inflation expectations rise. This supports the view that Bitcoin can function as a hedging instrument. However, during broader financial uncertainty, Bitcoin’s price often declines—meaning it does not yet meet the criteria of a safe-haven asset comparable to gold.
Controversy and Investor Concerns
Several studies have revealed another side of Bitcoin as a value protector. Academic research conducted in 2023 recorded Bitcoin price declines following inflation shocks, suggesting its effectiveness as a hedge is not guaranteed. Other sources argue that Bitcoin’s hedging function is contextual and may diminish as adoption becomes more widespread.
Conclusion: Diversification, Not Full Substitution
Bitcoin offers compelling potential as an inflation hedge due to its limited supply and decentralized nature. Nevertheless, price volatility and its weak response to global financial turbulence prevent Bitcoin from replacing traditional safe-haven assets such as gold or real estate. For some investors, Bitcoin may serve as part of a diversification strategy but only with a clear understanding of its inherent risks.
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