Bitcoin is back?

Bitcoin fell together with both high valued stocks as well as bonds in 2022. It didn’t turn out to be a great inflation hedge, as its price fell as inflation rose. However, it seems to have turned out as a decent financial system hedge as the price rose after Silicon Valley Bank and Signature Bank were taken over by the U.S. government.

So digital gold might continue to be a good way to describe Bitcoin. Not the most practical way to pay for things, but it can play a part in a financial portfolio. Especially when times are rocky for the financial system.

Author: Henrik Torstensson

Partner at Alliance VC. Investing in Nordic early-stage tech startups.

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