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by skybrian 1370 days ago
USDC isn't a inflation hedge. It's pegged to the dollar, after all. Looking at the chart, Bitcoin is worse than an inflation hedge for anyone who bought in 2021 or later.

If you're worried about inflation then I-bonds seem like a less risky way to handle this. (Though the limits are too low for many people, and the website is pretty bad.)

1 comments

RAI isn't really meant to be an inflation hedge but in theory people can create a price index and then index RAI bonds against it which would then allow you to maintain your purchasing power.

TIPS and I bonds are in my opinion the way the economy should work everywhere. Yes it means nominal yields can be negative but the entire point of the concept is that the unit of account should be stable and not inflating. Even if rates are excessively negative, it is still more predictable than inflation and you know exactly how much you are losing and prices will stay the same so your salary doesn't shrink over time.

What's an RAI bond? My search didn't find anything.