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seckingerhutchen
@seckingerhutchen
Bitcoin’s investment strategy during inflation focuses on risk-adjusted exposure due to its high volatility compared to gold and stocks. While Bitcoin’s scarcity makes it theoretically inflation-resistant, its price swings (e.g., $69,000 peak in 2021 to $16,000 low in 2022) demand caution. Gold offers lower risk but modest returns, often underperforming inflation over long periods (e.g., real returns near 0% from 1980–2000). Stocks provide growth but face inflation-related headwinds, particularly in high-valuation sectors like tech. A conservative strategy might limit Bitcoin to 3–5% of a portfolio, with 20–30% in gold for safety and 65–75% in stocks (favoring inflation-resistant sectors like energy or healthcare). This approach balances Bitcoin’s upside with the reliability of gold and stocks.
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