Why do some investors consider Bitcoin a hedge against inflation and national debt?
Why is this the correct answer?
This is correct because Bitcoin has a fixed maximum supply of 21 million coins. Unlike fiat currencies, which can be printed in unlimited amounts by governments and devalued by inflation, Bitcoin’s scarcity prevents dilution. Beginners should know that when national debt rises and central banks issue more currency, the purchasing power of money can drop. Bitcoin’s capped supply offers a hedge against that risk.
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