The Inventor of Dogecoin Opposes the Idea of Crypto Being Protection Against Inflation

Billy: inventor of Dogecoin shared his opinion on the belief that crypto can function as a protection against inflation. He opined that such beliefs are just marketing and that the reason why people possess crypto is due to its very volatile nature.

This story surrounding crypto came up some months ago. At that time, cryptocurrency performed better than many other traditional assets on the market. The tendency of Cryptocurrency to outperform other traditional markets makes them act as a value-storing asset. This is in contrast to the traditional currency which loses value over time.

However, this belief about crypto has changed, following the huge poor performance of the Cryptocurrency market, in recent times. For example, the LUNA and Terra UST crash, during which billions of US dollars were lost in value.

Cryptocurrency Market Against Inflation
Despite the Huge value loss plus the fast decline in electronic properties, many of these assets are still performing better than other inflation protection assets: Gold or commodities. One will agree that an investment in Bitcoin a decade ago would have yielded thousands of percentages of gain. Consequently, this would have outperformed an investment in Gold: having invested in both Bitcoin and Gold at the same time.

Sadly, most of the crypto holders today got to know about electronic properties following the huge rally of electronic properties value in 2017 and 2021. If someone had invested in Bitcoin between 2017-2021 such person would have lost 30% of the initial investment. This would have been a  very poor means of protecting one’s self against Inflation.

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