- There are three types of inflation: monetary inflation, consumer price inflation, and asset price inflation.
- If there is a lot of labor and/or a lot of cheap commodities, consumer prices don't immediately follow monetary inflation.
- From 2008 till 2020, we had mostly asset price inflation and less consumer price inflation. This is reversing.
- BTC has been hedging its holders against monetary inflation, not against consumer price inflation.
- BTC (and ETH) have outperformed both stocks and real estate in money supply-adjusted terms.
- The future development of the money supply and Bitcoin's reaction to it determines its long-term price development.
- Deglobalization is changing the economics of everything.
- Higher inflation could be here to stay for several reasons caused by deglobalization.
- BTC will run it back when the money printer is back on and institutions ape in again.