Out of all the reasons to be bullish on Bitcoin, claims that it is an inflation hedge is the most puzzling one.

The “bitcoin is digital gold” narrative has been around for some time. From all the frameworks used to value Bitcoin, it is one of the few we consider having a number of economic merits supporting it. After all, Bitcoin’s seminal whitepaper itself does reference a similarity to how Bitcoin is mined.

What started as a fiendishly clever curiosity shared on an esoteric anti-authoritarian cryptography mailing list, has now developed into a legitimate emerging asset class in its own right, discussed in boardrooms of banks and pension funds throughout the world.

Digital assets are a new and exciting asset class. From the unmatched returns of Bitcoin, the OG of the space, to the vast promised land of DeFi made possible by the smart contract capability of a blockchain, it’s hard to miss the signs that there’s something new afoot.

Institutional investors make asset allocations decisions in a portfolio context. Retail investors allocate mostly based on what they think is going to pump with little regard to a portfolio context. Both have found hodling difficult for distinct reasons. So far, it’s been the best strategy.