In recent years the dollar has had an inflation rate of around 2 percent, and it has been higher in the past. Some have advocated using Bitcoin as an alternative to inflationary fiat currency.
But Bitcoin is not a good choice for preserving the value of your cash. Bitcoin’s value is extremely volatile. While Bitcoin’s value has generally increased in the last few years, it has also experienced dramatic declines in value. For example, the currency lost more than half of its value in 2014.
Hence, Bitcoin should be seen as a high-risk investment like a technology stock, not as a stable store of value. If you want a hedge against inflation, the United States Treasury offers inflation-protected bonds for just this purpose.
We have a request
In moments like this — as people grapple to understand variants and vaccines, and kids head back to school — many outlets take their paywalls down. Vox’s content is always free, in part because of financial support from our readers. We’ve been covering the Covid-19 pandemic for more than a year and a half. From the beginning, our goal was to bring clarity to chaos. To empower people with the information they needed to stay safe. And we’re not stopping.
To our delight, you, our readers, helped us hit our goal of adding 2,500 financial contributions in September in just 9 days. So we’re setting a new goal: to add 4,500 contributions by the end of the month. Reader support helps keep our coverage free, and is a critical part of sustaining our resource-intensive work. Will you help us reach our goal by making a contribution to Vox with as little as $3?
:format(webp)/cdn.vox-cdn.com/uploads/chorus_image/image/62316763/shutterstock_630353870.0.jpg)
