“Consumers who continue to buy homes and cars despite substantial price increases are not suffering from inflation, they are (in part) a driver of inflation,” he wrote. “Pre-pandemic, consumers spent 38.7% on goods, but a whopping 61.3% on services. In 2020, the demand for goods rose 20% globally, but production increases were barely 5%. Prices rose accordingly.”
Hedge or Cause? Unpacking Bitcoin and Inflation
