Bitcoin is often considered a potential hedge against global inflation due to its fixed supply cap of 21 million coins, which contrasts with fiat currencies that can be printed indefinitely. In an inflationary environment, where central banks increase money supply, Bitcoin’s value may rise as investors seek assets that retain purchasing power. Compared to gold, Bitcoin offers higher volatility but also greater potential returns, as seen in its historical price surges (e.g., 2020–2021). Gold, while a traditional safe-haven asset, tends to appreciate more steadily but with lower long-term returns (e.g., gold returned ~7% annually from 2000–2020, while Bitcoin’s annualized returns exceeded 100% in some periods).