Sumary of Bitcoin Is Failing Its First Inflation Test as Selloff Deepens:
- Their argument hadn’t previously been tested, however, because inflation has largely been under the Federal Reserve’s 2% target since bitcoin’s 2009 launch.
- Many investors have largely dismissed the gains in inflation, seeing them as skewed by short-term supply disruptions related to the reopening of the economy.
- Federal Reserve Chairman Jerome Powell and other policy makers have also maintained that they expect such gains to be transitory.
- “It’s just like buying a lottery ticket,” said Leonard Kostovetsky, an assistant professor of economics at Boston College Carroll School of Management, of bitcoin.