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Gold vs. Bitcoin: Which is the Better Inflation Hedge?

  Introduction As inflation erodes the purchasing power of traditional currencies, investors seek safe-haven assets to protect their wealth. Gold and Bitcoin have emerged as two of the most debated inflation hedges. While gold has a thousand-year track record , Bitcoin represents a digital alternative with growing institutional adoption . This guide compares gold vs. Bitcoin as inflation hedges , analyzing their pros, cons, historical performance, and investment strategies . 1. Understanding Inflation and Hedging Assets A. What Is Inflation? Inflation is the rise in the price of goods and services over time , reducing the purchasing power of money. Central bank policies, supply chain disruptions, and excessive money printing can all trigger inflation. 💡 Example: The U.S. inflation rate hit 9% in 2022 , the highest in 40 years, prompting investors to seek protection. B. Why Invest in Inflation Hedges? ✔ Preserves purchasing power – Assets like gold and Bitcoin appreciate when ...