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lol That's the problem - you can't look to hedge for currency with an asset that's so volatile. The currency flux is tiny compared to the crypto.
Roubini: Stay Away From Crypto
During a talk at WealthManagement EDGE, NYU Stern School of Business Professor of Economics Nouriel Roubini questioned whether cryptocurrencies should be considered currencies at all.www.wealthmanagement.com
Roubini said his skepticism was based on several factors, including that scams and money manipulation were far too prevalent among crypto options. He also stressed that hedging with crypto wouldn’t suffice in an inflationary environment, remarking that as inflation worries have risen, Bitcoin, Ethereum and other cryptocurrencies’ values were collapsing by more than half. Roubini also believed cryptocurrencies were far too heavily correlated with risky assets.
Even a description of cryptocurrency as a currency was a “misnomer,” according to Roubini, who argued that nobody was pricing goods or services in Bitcoin and Ethereum, among others. Crypto’s scalability remained an issue, with Roubini claiming bitcoin can only process five transactions per second. Those accepting it as a means of payment also are taking an undue risk, he argued.
“Suppose you had a profit margin of 10 to 15%,” he said. “Overnight, bitcoin can fall by 10 to 15%. Your margin is going to be essentially wiped out, so you’re taking a huge market risk.”
I quoted his comment about "overnight" use as a hedge. That's why big banks and corps won't use BTC as a currency hedge in large transactions. That's where the big $ is.
As for an inflation hedge, neither BTC or gold has any correlation to inflation this cycle. Only mining and other hard asset-related stocks have worked, so far. Bitcoin is down 50% and inflation keeps on roaring.
