Is Bitcoin a good hedge against fiat currency?
Is Bitcoin a good hedge against fiat currency?One of the most commonly cited benefits of bitcoin (‘BTC’) is that it is a hedge against fiat collapse. ‘Fiat’ currency is simply a currency that is not backed by anything and can be printed at random. Would you agree with this or this is false?
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FROM INDUSTRY GIANTS PERSPECTIVE You know it is a good hedge when even the intense rivals say so (after undermining it to all their strength). From calling bitcoin a "fraud" to accepting its potential (at least as a hedge against a loss of confidence in domestic currency and payments system), JPMorgan has come to a long way. Back in 2017, they said, "Bitcoin is a fraud that will ultimately blow up". In 2020, they are saying “Developments over the past year have not altered our reservations about the limited role that cryptocurrencies play in global portfolio diversification or as a hedge instrument,” Also, “Crypto assets have a place in investors’ portfolios only as a hedge against a loss of confidence in both the domestic currency and the payments system.” and that "2019 will be remembered for the rise of digital money” However, as Block Geeks correctly identified, some believe that the Coronavirus (COVID-19) could be 'Black Swan' resulting in massive sell-offs and that Bitcoin may still be too young for it to withstand drastic events  FROM TECHNICAL PERSPECTIVE The following properties of bitcoin (as a unit of currency) and Bitcoin (as a protocol) makes it worth being a hedge against fiat. * Scarcity * Cross Border * Store of Value * Decentralized * Equal participation opportunity * Banking the unbanked  https://www.theguardian.com/technology/2017/sep/13/bitcoin-fraud-jp-morgan-cryptocurrency-drug-dealers  https://www.bloomberg.com/news/articles/2020-02-21/jpmorgan-says-blockchain-is-laying-foundation-for-digital-money  https://www.ibtimes.com/coronavirus-could-be-black-swan-kills-bitcoin-cryptocurrency-heres-why-2934185
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