Inflation Hedging: Is Bitcoin used as a hedge against increasing inflation?
This study investigates the usage of Bitcoin as a hedge against unexpected inflation. The research is done using event studies and google trends, it analyzes the changes in Bitcoin during inflation rate announcements. While employing the event studies method, the results show no relationship between Bitcoin returns and high unexpected inflation in the days surrounding the announcements. However, evidence of a positive relationship between both variables is observed when examining changes in the popularity of keywords associated with cryptocurrencies for the same events. Search results numbers are obtained using Google Trends. Keywords: Inflation, Hedging, Bitcoin, Cryptocurrencies
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