Bitcoin is not an effective hedge against inflation in the short term because of its volatility. It might be in the long term, that we will see.

You are right that CPI is a limited measure of inflation. That is why it is important to know how it is calculated. How closely does the basket of good match your spending. It is a consumer price index, very limited. There are indices that track income, assets and commodities. CPI does not reflect my personal inflation because my housing costs are fixed, am not buying a new/used car, and my fuel costs are tiny. My consumer inflation is less than the CPI not more, it is not even remotely plausibly closer to 25%.

Imagine that your consumer inflation was 25% per year. You would have been devastated already unless you were seeing huge pay increases. 25% inflation does not pass the smell test. Anyone who tracks their spending would know their personal inflation rate.

Wage inflation is tracked and CPI adjusted wages have been stagnant. If you believe that CPI is less than real inflation then inflation adjusted wages have been dropping.

Asset inflation, sometimes call appreciation, for most people this is their house if they own one or more and any stocks, bonds, gold, bitcoin etc. These classes of assets have been appreciating quite quickly.

Bitcoin is not emerging of the few solutions to the problem of inflation. Their are many, Real Estate, Gold, Ethereum, Bitcoin, Stocks, Bonds, diversify.

TEK