Data from blockchain analytics firm Chainalysis suggests that Bitcoin (BTC) may not be the inflation hedge that many seem to believe in.

“Currently we cannot show a statistically significant correlation between US inflation and Bitcoin price, but we know an anecdote that many people invest in Bitcoin as a hedge against inflation,” Kim Grauer, research director at Chainalysis, told Cointelegraph on 8. 31 when asked for her thoughts on current US inflation and its impact on Bitcoin.

US inflation has been a hot topic for the past year or two. As early as June, the report showed that inflation in the US had reached levels not seen in more than a decade.(Chainalysis)

Other countries have seen inflation much worse than the numbers in the United States. Venezuela, for example, had inflation of 10,000,000% in 2019. Interest in digital assets grew at the same time.

“We also know that in other countries with higher inflation or currency depreciation, such as Venezuela and Nigeria, cryptocurrencies are used as a store of value,” added Grauer.

Bitcoin is often described as a store of value in the crypto industry, although events like the price crash in early 2021 logically undo that story.