Don’t buy Bitcoin to speculate on hyperinflation

It is potentially a good hedge against that but that doesn’t make it a good investment now

The key point to understand is that while the dollar is indeed a fiat currency — that is, the authorities can issue more dollars at will, without the need to back those additional dollars with some kind of collateral — America isn’t Venezuela or the Weimar Republic, a nation that prints money to pay the government’s bills. Our money supply is a policy tool used by the Federal Reserve to help keep prices fairly stable — actually, rising around 2 percent a year — while avoiding recessions.

Will Bitcoin preserve your savings?

Will hyperinflation drive Bitcoin value?



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Joshua Gans

Skoll Chair in Innovation & Entrepreneurship at the Rotman School of Management, University of Toronto and Chief Economist, Creative Destruction Lab.