Is bitcoin a hedge against inflation?: Someone who had invested $10,000 into bitcoin when bitcoin was $1000 per bitcoin would've had as of today 1100x of his investment and his investment would be worth $1,100,000. Now you can see for yourself that the value for his $10000 investment into bitcoin has appreciated by 1100X and surely his money would've been hedged against inflation and currency depreciation if he had invested it into bitcoin.
Furthermore, the worth of his investment would've increased considerably which further validates bitcoin not only as a hedge against inflation, but also as a store of value.
But not everyone had the opportunity to buy bitcoin when the price was only at $1k, only a few people got such a great opportunity. We should discuss what is happening and what is going to happen, not take the past as an example when the past cannot guarantee the future. What guarantees are there that bitcoin will continue to grow exponentially and give new investors thousands of percent returns so they can cope with inflation?
To be fair, bitcoin is an investment asset that can be used as an inflation hedge but is not an effective inflation hedge due to its volatility.
Unlike gold, its price can surge rapidly but can also be dumped at any time. Therefore, its use as an inflation hedge should be cautious, especially in the short term.