Balaji Srinivasan’s $1M Bitcoin Wager May Be Proper, however I Hope He’s Fallacious

First, why did the inflation hedge thesis lose credibility? Nicely, folks noticed inflation rising quickly in late 2021 and early 2022, simply as bitcoin’s value rapidly fell. Ergo, bitcoin wasn’t an inflation hedge. Many critics of Bitcoin loved carping about this, and the tl;dr of all of their articles and interviews was “I advised you so.” However some bitcoiners, comparable to Steven Lubka, held to their conviction. We have been experiencing value inflation on account of systemic provide chain shocks attributable to varied elements, significantly the world reopening following COVID-19. There was no financial inflation, and so, the concept that bitcoin might act as a lifeboat amid the devaluing of the U.S. greenback might nonetheless maintain true.