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konjilykovay
@konjilykovay
Bitcoin’s role in an inflation-driven investment strategy is to diversify a portfolio, reducing reliance on traditional assets like stocks and gold. Its low correlation with other asset classes (e.g., ~0.2 correlation with S&P 500 historically) makes it a unique addition. During inflation, Bitcoin may outperform if adoption grows, as seen in countries with high inflation like Venezuela or Zimbabwe. Gold, while reliable, often lags in bull markets (e.g., gold’s flat performance in 2021 vs. Bitcoin’s ~60% gain). Stocks can struggle under high inflation due to rising costs and interest rates, though value stocks may fare better. A balanced strategy could allocate 60% to stocks (diversified across sectors), 20% to gold for stability, and 10–20% to Bitcoin for upside potential, with periodic rebalancing to maintain proportions.
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