Bitcoin as a Hedge
Happy Bitcoin Friday! — Oct. 10, 2025
Bitcoin as a Hedge: Only If You Hold It
In this recent series, we’ve worked through the foundations of money and why Bitcoin is different. Now it’s time to confront a bold claim often repeated without understanding:
Is Bitcoin an inflation hedge?
The real answer:
It can be—but only if you already own it.
Revisit recent posts in the series:
What a Hedge Really Is
A hedge is not a guarantee of profit.
It’s protection.
In any domain (gardening, travel, finance) a hedge is put in place before risk arrives. You don’t buy insurance during a crash. You don’t build a seawall mid-storm.
Financially, a hedge is exposure to something that behaves differently during stress. But this exposure must exist ahead of time.
Without prior positioning, there is no hedge—only reaction.
“Bitcoin Didn’t Protect Me” — Or Did You Buy Too Late?
People dismiss Bitcoin as an inflation hedge because they only observe it in short-term price windows.
They enter during hype, exit during fear, and then claim it didn’t hedge anything.
But a hedge isn’t meant to be timed.
It’s meant to be held.
Risk-On? Risk-Off? The Truth Is: It Depends on the Holder
Throughout its 16-year lifespan, Bitcoin has been labeled:
A risk-on tech trade when it rallies alongside growth assets
A risk-off store of value during currency crises
A speculative asset for high-volatility traders
All of these can be true depending on the time horizon and purpose of ownership. Hedge funds may treat Bitcoin like a NASDAQ proxy. Long-term holders view it as protection from currency debasement and monetary failure.
A Hedge Requires Time, Not Timing
Effective hedges are built through time exposure, not short-term precision. If you don’t live with an asset through cycles, you don’t receive its benefits during stress.
This applies to gold.
It applies to equities.
It applies to Bitcoin.
Inflation Hedges: Two Winning Extremes
Over the past decade, inflation has been outpaced by two very different camps:
Old-world hedges – Gold, commodities
New-world hedges – Dominant growth companies, innovation equities
Neither is stable, yet both protect purchasing power over long horizons. Markets reward a few outliers and Bitcoin now sits among these potential outliers.
Bitcoin’s Hedge Power Is Emerging
Bitcoin is no longer an experiment.
It’s a multi-trillion-dollar asset class. But its role is still misunderstood because most view it through short-term volatility instead of long-term monetary evolution.
I see Bitcoin as:
A hedge against monetary inflation
A hedge against legacy portfolio structures
A hedge against reckless policy and fiat debasement
Many are only beginning to recognize this.
The Final Truth About Bitcoin as a Hedge
A hedge is not a last-minute trade.
It’s a long-term position taken in anticipation of uncertainty. Bitcoin can absolutely serve as an inflation hedge—but only for those who carried it through time, not those who chased it in panic.
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Enjoy the weekend!
I am not an investment or financial advisor. All opinions expressed are mine alone. Read the full DISCLAIMER on the About page.
HODL on Garth.