Inflation is solely the dilution of the money supply, the creation of more money. Consumer price increases are either caused by supply factors that no “inflation hedge” can or should protect investors from, or they are a lagging indicator of money printing.

Measuring monetary dilution via increases in the prices of goods is a fool’s errand.

The first is that while Bitcoin is directionally similar to most other assets when the money supply is expanded or contracted, it outperforms all other major assets in environments of monetary expansion.

Bitcoin is the purest inflation hedge because it is just money. Yes, tech stocks go up as liquidity floods the system. Yes, houses go up as interest rates drop. But stocks have idiosyncratic risks like debt loads, bad product decisions, competition, risks of obsolescence, and other real-world challenges. The same is true for real estate which suffers sufficient maintenance costs, jurisdictional risks, and illiquidity.