investors often seek refuge in assets that can preserve value amid currency debasement. Traditional hedges include gold, real estate, and equities. *However, among these, Bitcoin stands out as uniquely scarce—with a fixed supply of 21 million coins and no central authority capable of altering its issuance.* This quality continues to drive interest in Bitcoin as a long-term store of value in the face of expansive fiscal and monetary policies. *With almost 4 million bitcoins lost, there is not enough bitcoins for every millionaire to even have one bitcoin each in his wallet.*
Bitcoin and gold have no cash flows. They are the true hedge against inflation. In fact in the last 15 years gold has outperformed the US stock market also. Bitcoin has outperformed gold at an even astonishing pace. Stocks cannot grow beyond a certain point, it still works on principles of discounted cash flows. Valuation of bitcoin or pricing works on belief and any price can justify belief unlike stock markets where price is driven by discounted cash flows and growth.
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