Bitcoin is The World’s Greatest Hedge Against Inflation and American Economic Dominance

Adebayo Adeniran
6 min readOct 8, 2021

Reports of the imminent demise of this brilliant contraption are a complete nonsense.

Ewan Kennedy via Unsplash

With the notable exception of the basketball loving Frenchman who writes brilliantly about Bitcoin on this platform, the vast majority of articles on the subject matter of the preeminent cryptocurrency of our time are profoundly nonsensical.

Why?

To understand bitcoin’s place in our financial system today, we need to look beyond the its performance in the short to medium term and moves by national governments (China and The United States of America in particular) across the world to rein in its influence. A thorough comprehension of bitcoin requires a high degree of knowledge of the history of money and economics for the last five hundred years and beyond.

The Hyperinflation of the US dollar

Consumer price Index is usually the basis of measuring inflation and has been so for a long time. In the United Kingdom, the preferred method is retail price index, which is often described as RPI.

But the fatal error with the computation of America’s inflation lies in its glaring omission of three major sectors:

  1. Property Market
  2. Student loan
  3. External debts: Huge deficits with China and Japan

The American property market is multi trillion enterprise which is almost exclusively funded by debt.

According to CNBC, This is what we know:

  • Household debt rose $313 billion in the second quarter to nearly $15 trillion.
  • In dollar terms, that was the fastest growth since the second quarter of 2007, and at 2.1% was the fastest percent increase in seven and a half years.
  • Over the past four quarters, mortgage originations have totaled close to $4.6 trillion, amounting to 44% of all outstanding home loan balances.

According to nerdwallet.com, student loan debt owed by Americans, as at the 31st of March 2021 comes up to 1.6 trillion dollars. This sum is owed by 43 million Americans.

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Adebayo Adeniran

A lifelong bibliophile, who seeks to unleash his energy on as many subjects as possible