According to data from blockchain analytics company Chainalysis, Bitcoin (BTC) may not protect against inflation as many think.
On August 31, Chainalysis head of research Kim Grauer shared with Cointelegraph his views on current inflation in the US and its impact on Bitcoin. “Currently we cannot show a statistically significant correlation between inflation and the price of Bitcoin in the US, but we know that most people invest in Bitcoin to hedge against inflation,” said Grauer.
Inflation in America has been a hot topic for the past two years. According to reports published in June, inflation in the United States has reached levels not seen in more than a decade.
Some other countries have experienced much worse inflation than the United States. For example, inflation in Venezuela reached 10 million percent in 2019. However, interest in digital assets in the country has also increased.
“We also know that in countries experiencing much more severe inflation and devaluation, such as Venezuela and Nigeria, people use cryptocurrencies as a store of value,” Grauer added.