It’s really not. It is highly correlated with high risk assets and growth shares. It is anything but an inflation hedge, which is why it has been plunging as inflation rises and will fall more if interest rates rise.
If it were an actual currency things might be different, but instead it’s just another high risk speculative asset.
Just because BTC is temporarily correlated with risk assets, that doesnt mean it wont change.
Also, it's better to look at charts by starting at the beginnning of this 4 year cycle, dont pick out a bearish 6 month period and falsely claim BTC fails the inflation test. Short termism and Bitcoin's monetary policy are incompatible.
Wrong, real inflation has been rising at an alarming rate for more than a decade, it didnt start in Q4 of 2021.
If you choose to measure BTCs performance poorly (3-6 month windows), you are just feeding yourself a false conclusion since Bitcoin had a 5,000,000x return over the past decade.
BTC's monetary policy makes it an inflation hedge regardless of what humans are doing with it, the cycles just take 4 years to play out. The evidence is literally in the code.
No need to complicate things, just focus on 2 key questions...
1. Is the BTC supply inflation rate lower than the US dollar’s (and other fiat currencies)?
2. Will it be lower for the forseeable future?
That will give you the simple answer you are looking for...both answers are 'yes' btw.
Both cryptocurrencies and stocks are traded with leverage these days, and central banks control the price of leverage. So, if central banks decide to start raising interest rates, asset prices will go down because leveraging becomes more expensive.
If it were an actual currency things might be different, but instead it’s just another high risk speculative asset.