Cryptocurrency

United

Frax Price Index

Bitcoin

Frax

<div class="finbold"> 
 <p class="paragraph">Bitcoin (BTC) has usually been promoted as an inflation hedge, but amid the worst years in over a decade of growing inflation worldwide, the bear market surged for the leading cryptocurrency that has been outperformed by other inflation hedge assets in the short term.</p> 
 <div></div>
 <p class="paragraph">In this context, the Frax Price Index (FPI) — a <a rel="dofollow" title="token" href="https://thebittimes.com/tag/token.html">token</a> created in the Frax Finance ecosystem supposedly <a rel="dofollow" title="pegged" href="https://thebittimes.com/tag/pegged.html">pegged</a> to the US CPI — seems to be outperforming Bitcoin by close to 40% since its deployment, from the end of September 2022 to press time.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" loading="lazy" width="1024" height="617" src="https://cdn.thebittimes.com/images/2023/09/13/49fc2c40179729f005acc38a648097d5.webp" alt class="wp-image-128198" srcset="https://cdn.thebittimes.com/images/2023/09/13/49fc2c40179729f005acc38a648097d5.webp 1024w, https://cdn.thebittimes.com/images/2023/09/13/49fc2c40179729f005acc38a648097d5.webp 300w, https://cdn.thebittimes.com/images/2023/09/13/49fc2c40179729f005acc38a648097d5.webp 768w, https://cdn.thebittimes.com/images/2023/09/13/49fc2c40179729f005acc38a648097d5.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   FPI price chart since inception. Source: <em>CoinMarketCap</em>
  </figcaption>
 </figure> 
 <p class="paragraph">Although it is still an experimental project that must be looked into with caution, the FPI performance against BTC can also pose as a valuable indicator of how Bitcoin has been performing as an inflation hedge in this last year.</p> 
 <blockquote class="wp-block-quote"> 
  <p class="paragraph">“The system will adjust every month according to an on-chain Consumer Price Index oracle so that holders of the FPI will increase their dollar-denominated value each month according to the reported CPI increase.”</p> <cite>— FPI description by <em>CoinMarketCap</em></cite>
 </blockquote> 
 <div class="not-prose relative overflow-auto scrollbar-hide mb-8 mt-8"> 
  <div class="relative w-full flex gap-6 snap-x snap-mandatory overflow-x-auto"> 
   <div class="max-w-[300px]"> 
    <div class="py-0 first:pt-0 last:pb-0"> 
     <div class="flex gap-x-4"> 
      <div class="shrink-0  w-24"> 
       <img data-src="https://cdn.thebittimes.com/images/2023/09/13/8d2d1717a5cb35ba7c15575efd57a037.webp" alt class=" w-full rounded-md lazy"> 
      </div> 
      <div>
        Cryptocurrency 
       <h3 class="font-bold leading-6 " id="bitcoin-price-forecast-for-september-october-2023"> Bitcoin price forecast for September-October 2023 </h3> 
       <div class="sm:flex gap-x-3 mt-2"> 
       </div> 
      </div> 
     </div> 
    </div> 
   </div> 
   <div class="max-w-[300px]"> 
    <div class="py-0 first:pt-0 last:pb-0"> 
     <div class="flex gap-x-4"> 
      <div class="shrink-0  w-24"> 
       <img data-src="https://cdn.thebittimes.com/images/2023/09/13/6b9168d0aeb280091e7c632898f7bc2f.webp" alt class=" w-full rounded-md lazy"> 
      </div> 
      <div>
        Cryptocurrency 
       <h3 class="font-bold leading-6 " id="mexican-multi-billionaire-reveals-why-he-s-all-in-on-bitcoin"> Mexican multi-billionaire reveals why he’s all-in on Bitcoin </h3> 
       <div class="sm:flex gap-x-3 mt-2"> 
       </div> 
      </div> 
     </div> 
    </div> 
   </div> 
   <div class="max-w-[300px]"> 
    <div class="py-0 first:pt-0 last:pb-0"> 
     <div class="flex gap-x-4"> 
      <div class="shrink-0  w-24"> 
       <img data-src="https://cdn.thebittimes.com/images/2023/09/13/5a12497bd29d4b5f4b54a95e1b026559.webp" alt class=" w-full rounded-md lazy"> 
      </div> 
      <div>
        Cryptocurrency 
       <h3 class="font-bold leading-6 " id="top-5-builders-cryptocurrencies-with-the-highest-github-scores"> Top 5 builders: Cryptocurrencies with the highest GitHub scores </h3> 
       <div class="sm:flex gap-x-3 mt-2"> 
       </div> 
      </div> 
     </div> 
    </div> 
   </div> 
   <div class="max-w-[300px]"> 
    <div class="py-0 first:pt-0 last:pb-0"> 
     <div class="flex gap-x-4"> 
      <div class="shrink-0  w-24"> 
       <img data-src="https://cdn.thebittimes.com/images/2023/09/13/4af50e31e0c7c7131be56fbea6d60170.webp" alt class=" w-full rounded-md lazy"> 
      </div> 
      <div>
        Cryptocurrency 
       <h3 class="font-bold leading-6 " id="expert-hints-bitcoin-sideways-trading-is-preparation-for-huge-post-halving-pump"> Expert hints Bitcoin sideways trading is preparation for huge post-halving pump </h3> 
       <div class="sm:flex gap-x-3 mt-2"> 
       </div> 
      </div> 
     </div> 
    </div> 
   </div> 
   <div class="max-w-[300px]"> 
    <div class="py-0 first:pt-0 last:pb-0"> 
     <div class="flex gap-x-4"> 
      <div class="shrink-0  w-24"> 
       <img data-src="https://cdn.thebittimes.com/images/2023/09/13/876048c6fba7cd4082621f554edddaed.webp" alt class=" w-full rounded-md lazy"> 
      </div> 
      <div>
        Cryptocurrency 
       <h3 class="font-bold leading-6 " id="bitcoin-rally-around-the-corner-as-btc-dominance-about-to-break-out"> Bitcoin rally ‘around the corner’ as BTC dominance about to break out </h3> 
       <div class="sm:flex gap-x-3 mt-2"> 
       </div> 
      </div> 
     </div> 
    </div> 
   </div> 
  </div> 
 </div> 
 <div class="mb-4 bg-slate-50 rounded-md layout-adjustment"> 
  <div id="finbold.com_middle" style="min-width: 300px; min-height: 250px;"> 
  </div> 
 </div> 
 <p class="paragraph">At the time of publication, the Frax Price Index was trading at 0.00004132 BTC, with a close to one-year gain of 39.49%.</p> 
 <h2 class="wp-block-heading" id="h-bitcoin-s-performance-against-gold-amid-increasing-us-cpi">Bitcoin’s performance against gold amid increasing US CPI</h2> 
 <p class="paragraph">Notably, another well-known inflation hedge in the history of finance is gold. There are plenty of financial products allowing investors to speculate in the price of gold (usually traded as XAU), which has also been outperforming BTC since 2022.</p> 
 <p class="paragraph">Amid the increasing US CPI results since January 1, 2022, the gold index (NASDAQ: XAU) has outperformed Bitcoin by 38%. Proving itself as a better <a rel="dofollow" title="hedge" href="https://thebittimes.com/tag/hedge.html">hedge</a> against the United States dollar <a rel="dofollow" title="inflation" href="https://thebittimes.com/tag/inflation.html">inflation</a> short term, during the current uncertain macroeconomics the world is going through.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" loading="lazy" width="1024" height="662" src="https://cdn.thebittimes.com/images/2023/09/13/c52c4c934f526b919dae5904e07cfe91.webp" alt class="wp-image-128199" srcset="https://cdn.thebittimes.com/images/2023/09/13/c52c4c934f526b919dae5904e07cfe91.webp 1024w, https://cdn.thebittimes.com/images/2023/09/13/c52c4c934f526b919dae5904e07cfe91.webp 300w, https://cdn.thebittimes.com/images/2023/09/13/c52c4c934f526b919dae5904e07cfe91.webp 768w, https://cdn.thebittimes.com/images/2023/09/13/c52c4c934f526b919dae5904e07cfe91.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   XAU v. BTC performance (%) price chart. Source: <em>TradingView</em>
  </figcaption>
 </figure> 
 <h2 class="wp-block-heading" id="bitcoin-price-analysis">Bitcoin price analysis</h2> 
 <p class="paragraph">Meanwhile, Bitcoin has lost around 45% of its value against the USD since the beginning of last year. Moving from $47,777 per unit to $26,117 by press time.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" loading="lazy" width="1024" height="661" src="https://cdn.thebittimes.com/images/2023/09/13/f27088f0f548883baa7aee9d42991c69.webp" alt class="wp-image-128200" srcset="https://cdn.thebittimes.com/images/2023/09/13/f27088f0f548883baa7aee9d42991c69.webp 1024w, https://cdn.thebittimes.com/images/2023/09/13/f27088f0f548883baa7aee9d42991c69.webp 300w, https://cdn.thebittimes.com/images/2023/09/13/f27088f0f548883baa7aee9d42991c69.webp 768w, https://cdn.thebittimes.com/images/2023/09/13/f27088f0f548883baa7aee9d42991c69.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC since January 2022 price chart. Source: <em>TradingView</em>
  </figcaption>
 </figure> 
 <p class="paragraph">However, BTC consolidated itself as the “best-performing asset” since the 2008 economic crisis, beating all other traditional financial products, which gave Bitcoin the validation of being a good inflation hedge long term. At least during a moment of economic expansion and wealth.</p> 
 <p class="paragraph">Further developments and demand dynamics over the leading cryptocurrency by market cap will settle whether Bitcoin can continue to be a good <a rel="dofollow" title="inflation" href="https://thebittimes.com/tag/inflation.html">inflation</a> <a rel="dofollow" title="hedge" href="https://thebittimes.com/tag/hedge.html">hedge</a> or not.</p> 
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p> 
 <p class="paragraph"> </p>
</div> 
<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/this-us-cpi-pegged-token-outperforms-bitcoin-as-an-inflation-hedge-tbt62635.html">https://thebittimes.com/this-us-cpi-pegged-token-outperforms-bitcoin-as-an-inflation-hedge-tbt62635.html</a></p>

This US CPI-pegged token outperforms Bitcoin as an inflation hedge

Table of Contents

TheBitTimes

Other articles published on Sep 13, 2023

Chilliz (CHZ) Price is Suffering Near $0.0550, What Next?

Collect & Exchange Launches User-Centric Digital Asset Exchange

Binance says SEC has no evidence on misuse of customer assets

Despite failures in the courts, Gary Gensler remains steadfast

Milady developer steals $1m in fees, takes over X accounts

North Korea’s Lazarus Group responsible for $55M CoinEx hack: Report

Join our free newsletter for daily crypto updates!