"Relatively constant over a year" seems very loose don't you think? In the past year we've seen an unprecedented injection of money into the system. Presuming you're living in the U.S. have a look south of the border to find out how every national currency is always a few economic policies from throwing inflation targets out of the window.
Even countries that do have hyperinflation experience it at a somewhat predictable pace. With Bitcoin, you don't know if it's down 80% tomorrow, then up 200% the next day, then down 50% the day after. It's a huge tail risk.
In the Weimar republic eggs went from $0.5 to $500 pretty quickly and by 8 months eggs were $1,500,000. Happens quicker than you think and that's a hell of a tail risk.
Bitcoin has been pretty consistently up on any timeline over the last decade. I've been present every crash and my tolerance for keeping a small percentage of net worth in it increases each time.
You don't have to keep 100% of your cash in bitcoin. With the current pace of money printing I think not keeping something in it is basically negligence to your family.
> Happens quicker than you think and that's a hell of a tail risk.
It's not a tail risk. If you see prices increase exponentially over the span of months, you will have had plenty of time to react. Inflation is mostly a problem of the wage earners who don't have cash savings in the first place. Otherwise, if you have significant life savings all in cash, you're financially illiterate and cryptocurrency is the last thing you should put your money into.
> Bitcoin has been pretty consistently up on any timeline over the last decade.
Bitcoin also has been consistently down 50% from the previous high most of the time. It has pump-and-dump penny stock levels of volatility.
Bitcoin is fine as a speculative asset, as an inflation hedge it's just completely asinine. There is virtually no correlation between actual inflation and the value of Bitcoin. There may be some correlation to the level of panic about hyperinflation among the uninformed public. If you want to ride that wave, go for it.
This happened because there wasn't enough eggs or food in general. If there is food shortage in the future people will pay all the bitcoins they have to get a loaf of bread or a few eggs.
