What does inflation mean in Bitcoin?

The U.S. Federal Reserve defines inflation as the increase in the price of goods and services over time, but many associate it with a change in the money supply, or the total amount of money in circulation. “In the bitcoin world, they don't use the term ‘inflation’ quite the way that economists do, as a general increase in consumer price.

Is bitcoin a hedge against inflation?

Crypto enthusiasts often talk about bitcoin as a hedge against inflation. Why? The argument is that central bank money printing will lead to inflation or the decrease in the value of money over time. Bitcoin, by contrast, has a fixed limit of 21 million coins that can ever be created. This limited supply allows bitcoin to resist inflation.

Does inflation still equal 1 BTC?

Inflation or not, 1 BTC still equals 1 BTC in the minds of true Bitcoin believers. What are we missing? Inflation might not be the only factor that plays a hand in determining the current price of Bitcoin.

Why is bitcoin a speculative investment?

This is because interest in bitcoin currently does include a huge speculative element. Since news of inflation brings the idea that central banks are going to raise interest rate targeting even further up, for the moment, bitcoin has a short-term inverse correlation with inflation news.