#1032 Zach Weinberg & Logan Bartlett Debating Pomp On Bitcoin’s Utility
The Pomp Podcast
Bitcoin as a Money Supply Hedge
- People often mistakenly believe Bitcoin is a hedge against CPI inflation (consumer price increases).
- In reality, Bitcoin is inversely correlated with CPI and seems to be correlated with money supply growth.
- When the Fed tightens monetary policy (reducing money supply), Bitcoin and other risk assets tend to decline.
- This suggests Bitcoin acts as a leveraged beta on money supply growth, meaning its price increases when the money supply expands, especially in speculative markets.
- Therefore, "inflation hedge" in the context of Bitcoin actually refers to a hedge against money supply expansion, not consumer price inflation.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
