Claim 14 of 22
Bitcoin: a hedge against inflation
Does Bitcoin protect savings against inflation?
Verdict
Not established
In the one period when inflation surged, Bitcoin lost 31 per cent in dollars to 30 June 2022 while prices rose 13.8 per cent, and its large later gain and its fall since the October 2025 high are not explained by inflation (inference by this audit). The record is short and mixed, and the result for 2021 to 2022 depends on the end date.
The cost, from the book's own figures. Taking the claim as stated and holding Bitcoin as the hedge from 31 December 2020 to 30 June 2022 lost 39.4 per cent of its value after US prices, in the stretch when US inflation reached its highest since 1981. The end date shapes that result, because inside the same window Bitcoin rose 124 per cent in dollars to its 10 November 2021 close.
Made by: Ammous, Lepard.
Test it on your own numbers
- United States: BLS, Latest consumer price index release (bls.gov/news.release/cpi.nr0.htm) and BLS CPI Inflation Calculator (bls.gov/data/inflation_calculator.htm), to price a holding's start and end dates against consumer prices.
- United Kingdom: ONS, Latest consumer price inflation bulletin (ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest) and Bank of England, Inflation calculator (bankofengland.co.uk/monetary-policy/inflation/inflation-calculator), to compare a holding's change with UK prices.
- Australia: ABS, Latest Consumer Price Index release (abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) and Reserve Bank of Australia, Inflation calculator (rba.gov.au/calculator/annualDecimal.html), to compare a holding's change with Australian prices.
The full test, with every figure dated and sourced, is in chapter 14 of the book.