Bitcoin’s inflation hedge has a hidden cost, and leverage makes it worse

Bitcoin’s Inflation Hedge Has Associated Costs, and Leverage Can Increase Them

Borrowing costs, forgone interest income, and futures fees can reduce returns even when Bitcoin maintains its value. These costs can increase when inflation remains high. September’s US inflation report showed consumer prices rose 3.7% year over year, contributing to concerns about the dollar’s purchasing power. The same inflation pressure…