Not sure about the exact number needed, but for bitcoin to be a (better) and more stable inflation hedge, what it mostly needs is people using it for that purpose; or simply people just holding it for longer periods of time.

^ People's opinions on what an inflation hedge should be are mostly debatable, but I think people mostly want a far less volatile asset for an inflation hedge, not an asset that moves like a high-beta growth stock.

People tend to believe whatever they feed with from the analytic view to statistics, the datas of the wallets collected comprises of those wallets that have sent transactions to the blockchain and does not include the dormant and unused wallet not minding whether their are generated online or offline.


Bitcoin inflation rate stood at 1.77% which is lower than United states inflation rate and that seems to me that when you talking about inflation rate one needs to take a lot of things into account but using a highly volatile asset like Bitcoin as a hedge against inflation seems to have several consideration because Bitcoin is more of an asset and also Bitcoin is a currency even because, Bitcoin can be used for the exchange of goods and services.

That puts it less into the category of inflation hedges and more into a category with growth stock as pointed out by mk4. Being an inflation hedge would imply a certain disconnect from the stock markets, similar to gold, however so far Bitcoin seems to behave more like a leveraged stock position. Looking at gold, however, it doesn't really look like much of an inflation hedge right now either.

Depending on what one expects from an inflation hedge it might still be early to tell though. It doesn't look like the decoupling from the stock market will happen any time soon, however I do expect Bitcoin to make up for lost purchasing power in a year or so.

Their accuracy here may not be totally confirmed as genuine because the source to their statistical assumptions is only base on centralized exchanges source and decentralized exchanges/hardware wallets aren't inclusive here, and i think it will be a little bit a teadeous task enough to get the right statistics as everyday and every minutes we got lots numbers of wallet getting created from different sources, so this can be rather left inconclusive.

It is not actually correlated with adoption.

When an asset has higher and higher price, it becomes more expensive and the volatility should be consequently smaller. At least the difference between two all time highs should be smaller. It's natural.

Bitcoin now has price in thousands of dollar but you can see its in altcoins now. Altcoins are easier to have x10, x100 in bull run and it is exactly what Bitcoin experienced with its past bull run.

Higher price means higher marketcap and it's harder to manipulate higher market capped projects.

Flat out not true.

With things like the lightning network more and more people are transacting without their wallets addresses being touched. Addresses wallets are just one small indicator of what is going on.
As more people use LN for day to day transactions BTC price will change. But there will be limited visibility on chain with addresses wallets.

Some people like LN, some people don't. At this point it's 'whatever', it's being used and it's growing so all other things aside lots of small transactions are going to matter more to theBTC price then a few larger ones.

-Dave

we can just think number of addresses mean adoption for bitcoin. i see nothing beyond that. each person can hold different types of hedges against inflation.  bitcoin , stock, gold  or whatever it is. it depends on each different person.

actually speaking bitcoin is a great inflation hedge i.m.o . if we invested in 2010 we face no inflation. but the risk is high volatility of bitcoin. to use bitcoin as a hedge against inflation we must have knowledge about market conditions ans fundamentals. if we bought the top on 2021 April we would have just lost our money. but if we buy now at this moment we would be making a great inflation hedge as well as we will make a nice ROI.

I also don't agree with the article, in my opinion bitcoin will be a good hedge against inflation in the long run. If you bought BTC last year near the ATH than it's not a good hedge. The high volatility we are seeing at the moment can discourage some investor now to invest. But the cheaper you manage to buy bitcoins the better it will be as an hedge in the long run. Another thing with the bitcoins price is that it's always quoted in USD and the Dollar had a very strong year, rising 10-20% against many other currencies. Taking that into consideration for all of the non USD investor it's another boost to the inflation hedge.  The number of real bitcoin wallets is hard to calculate because so many wallets change their address for every new transaction. Even the mobile wallet that I only use for small transaction below 100 USD changes the bitcoin address regularly, and then most of the investors have not only 1 or 2 wallets but probably 3-5.

It's correct that about a billion different addresses have been used, but that number is meaningless: it's like counting how many people touched different banknotes.
There are about 40 million funded Bitcoin addresses, and since many users have more than one funded address, there are less wallets than that. It seems like the majority of Bitcoin "users" keep it on an exchange. It's debatable whether or not they can be considered real Bitcoin users.

BTC is not a hedge against inflation if you bought in the ATH and didn't hodl for 4 years at least.

Was it a good idea to buy at 69k? No, unless you plan to hodl for 4 years (until 2025).

Will it be a good idea to buy in late 2025 (new ATH)? No, unless you plan to hodl until 2029.

It's as simple as that.

Almost nobody wants to buy during a bear market, everyone wants to buy during euphoria:

https://en.wikipedia.org/wiki/Herd_behavior
https://www.investopedia.com/articles/financial-theory/08/contrarian-investing.asp
https://alternative.me/crypto/fear-and-greed-index/

Currently and until late 2022-early 2023 it will be an excellent time to accumulate, just like it was back in 2018-2019 and 2014-2015.

I'm gonna love it if BTC reaches 1 million USD by late 2025, then it drops to 200-300k by late 2026 and everyone calls it "dead" and a "bad" hedge against inflation.

It will ALWAYS be bad if you want a get quick rich gambling scheme.

People need to learn how to practise patience:

https://www.youtube.com/watch?v=Yo4WF3cSd9Q