The Limits of Inflation Hedges: Gold, Silver, Bitcoin, and Beyond

The failings of gold, silver, and cryptocurrencies as stable monetary standards are traced in this article, which also examines the fundamentals of what makes a currency effective. It emphasizes the difficulties in locating a trustworthy inflation hedge and numeraire, from the demise of the gold standard to the instability of Bitcoin. In the end, it makes the case that real currencies need to be able to track products and services, act as a stable medium for commerce and pay, and endure volatility. This explains why fiat currencies continue to dominate while alternatives falter.