Cryptoassets: Inflation hedge, portfolio diversifier or return enhancer?

Written by Peter Habermacher, Chief Executive of Aaro Capital

What is an Inflation Hedge?

An asset that provides a hedge against inflation is one that has a positive correlation with the inflation rate, and in particular inflation surprises i.e., when the inflation rate is different to what the market expected. Historically, gold has been considered the go to inflation hedge. In the 1970s and 1980s gold produced strong returns against the backdrop of high inflation, however, gold…