In 2025, Bitcoin offers potential as an inflation hedge, but its extreme volatility and limited real-world use make it a high-risk bet.
Bitcoin’s supply-and-demand dynamics, in addition to growing institutional adoption, position it as a potential hedge against inflation in 2025. However, its high volatility and centralization concerns mean it remains a speculative asset rather than a guaranteed safeguard against inflation.
Inflation refers to the general increase in the prices of goods and services in an economy over time, leading to a decrease in the purchasing power of money. As prices rise, each unit of currency buys fewer goods and services. Inflation is typically measured by indexes such as the Consumer Price Index (CPI), which tracks the average change in the prices paid by consumers for a basket of goods and services.
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