Bitcoin's price has risen to old heights in the past few weeks.
A unit of the so-called digital currency recently cost almost $ 60,000 again.
Bitcoin supporters cite two reasons for this: First, the fan base seems to be certain that what was recently observed in China is not threatened in the United States.
Bitcoin is now largely banned there.
At least tough regulation was expected in the US, but recent signals point in a different direction. Even Bitcoin-related index funds (ETFs) can now hope for approval from the stock exchange regulator. Second, according to its fans, Bitcoin benefits from concerns about the rise in inflation that is rampant around the world. The traditional monetary system is coming under pressure, they conclude, which is why more and more investors are turning to Bitcoin. Bitcoin is a good protection against inflation.
Bitcoin and other digital currencies don't have to be rejected outright to mistake this idea for nonsense. Yes, Bitcoin is a breathtaking technological project that deserves recognition despite some weaknesses (keyword: high energy consumption). And yes, the Bitcoin system itself is designed so that the number of Bitcoin units cannot be increased indefinitely. This is the main argument that supporters make for Bitcoin's inflation protection. But then there is a very important difference to gold, the most classic protection against inflation. Gold will probably never completely lose its value, it can still be made into beautiful jewelry if necessary.
Bitcoin, on the other hand, is not based on any physical security, it is pure technology.
You can speculate on their value, as the price swings of Bitcoin show.
That such extreme fluctuations should offer investors protection against inflation is therefore a steep thesis.