Bitcoin and gold as a hedge against government-induced inflation

A macro analyst at investment bank Fidelity believes there would need to be a significant increase in the money supply to accept Bitcoin (BTC) and gold as a hedge against government-induced inflation.

Jurien Timmer, director and analyst at Fidelity recently shared an interesting publication on the social network X. He commented on the rapid growth of the money supply and the increase in inflation in the SAS, thus highlighting the power of gold and BTC as a hedge.

The expert emphasized:

"I think it will take time for the argument to take hold. This is likely to happen only when there is sustained growth in monetary aggregates. In addition, the sharp increase in real M2 during the pandemic quickly disappeared due to the fact that the Fed introduced tight policy. "

M2 is a money supply metric that measures checking accounts and other types of deposits that can easily be converted to cash.

At the time of writing this article Bitcoin is trading at $66,895, down almost 4% in the last 24 hours.