Dogecoin creator Billy Markus shared his view on the popular belief that cryptocurrencies are an inflation hedge. Markus believes that this is nothing more than “marketing” and that people mostly trade or hold crypto due to its extremely volatile nature.

The “inflation hedge” narrative about the cryptocurrency market emerged a few months ago when Bitcoin, Ethereum, and other cryptocurrencies performed relatively convincingly in the market and outperformed most traditional assets.

Such a trend of cryptocurrencies has made them an excellent store of value, with the value of fiat currencies falling in the background. That view has changed after the massive correction in the market we saw in May caused by the Terra UST and LUNA disaster.

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Despite the massive decline in value and rapidly falling value of digital assets, many still outperform alternative inflation risks such as gold or commodities. Relatively speaking, 10 years ago your investment in Bitcoin would have made you thousands of percent profit, easily surpassing gold and other inflation hedges.

Unfortunately, most cryptocurrency holders in the market discovered digital assets during or after the big bull runs of 2017 and 2021. Those who invested in Bitcoin during the “inflation hedge” saw a drop of over 30% from their initial investment. Bitcoin or other cryptocurrencies have become one of the worst ways to hedge against inflation in this case.

Billy Markus, co-founder of Dogecoin (DOGE), is mostly correct in his handling of the nature of the crypto market as most competitive investors do not view crypto as an inflation hedge and do not use it as a means of exposure to volatility.

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Dogecoin Mining Revenue Declines In The Last 12 Months

According to data collection and analytics platform CryptoRank, Dogecoin mining revenue is down 76.2 percent from last year. This puts DOGE in 11th place in terms of mining. According to the list published on June 9, 2022, Bitcoin mining revenue increased by 5.1% compared to last year. This kept the leading cryptocurrency in the most profitable position in terms of mining as well. In second place is ZCASH. ZCASH remains in second place after Bitcoin, although mining revenue has declined by more than 18 percent.