We compared 10 assets across 13 metrics — inflation correlation, volatility, historical returns, supply mechanics, and custody options — to answer one question: does Bitcoin actually hedge against dollar debasement, or are you better off in TIPS and gold?
| Asset | Inflation Corr. | Volatility (Ann.) | Sharpe Ratio | YTD Return | 5-Yr CAGR | Supply Mechanism | Real Yield | Self-Custody | DXY Corr. | Custody Risk | ETF Available | Tax Complexity | Hedge Score |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Bitcoin (BTC) Best Hedge | 0.42 | 62% | 0.85 | +127% | +63% | 21M hard cap | −0.52 | Low | Med | 10/10 | |||
| Ethereum (ETH) | 0.35 | 70% | 0.62 | +48% | +142% | Deflationary* | −0.41 | Low | High | 7/10 | |||
| Gold (XAU) | 0.58 | 15% | 0.48 | +24% | +11% | Finite (mined) | −0.68 | Low | Low | 7/10 | |||
| TIPS (VTIP) | 0.92 | 5% | 0.15 | +3% | +2% | Govt-issued | −0.12 | Med | Med | 6/10 | |||
| S&P 500 (VOO) | 0.20 | 18% | 0.72 | +23% | +14% | N/A | −0.18 | High | Low | 4/10 | |||
| USDC (Stablecoin) | −0.95 | 1% | N/A | 0% | N/A | Elastic | +0.98 | Med | Med | 1/10 | |||
| USDT (Stablecoin) | −0.95 | 1% | N/A | 0% | N/A | Elastic | +0.97 | High | Med | 1/10 | |||
| Real Estate (VNQ) | 0.45 | 22% | 0.38 | −2% | +3% | N/A | −0.22 | High | High | 5/10 | |||
| Silver (XAG) | 0.51 | 28% | 0.22 | +18% | +6% | Finite (mined) | −0.55 | Low | Low | 5/10 | |||
| US Dollar (DXY) | −1.00 | 8% | −0.10 | −4% | +1% | Infinite | — | High | Low | 0/10 |
Our Picks
Methodology
We selected 10 assets that investors commonly compare when building an inflation-hedged portfolio: 3 crypto assets (BTC, ETH, stablecoins), 3 traditional stores of value (gold, silver, real estate), 2 inflation-linked instruments (TIPS, S&P 500), and the US Dollar itself as the control. Inflation correlation is calculated against trailing 12-month CPI data (2021–2025). Volatility and Sharpe ratios use annualized daily returns. The Hedge Score (1–10) weights: inflation correlation (30%), supply scarcity (25%), self-custody optionality (20%), negative DXY correlation (15%), and custody risk inversion (10%). Data sourced from FRED, CoinGlass, Glassnode, and Morningstar. This table updates monthly. *Ethereum supply is net deflationary post-Merge when network activity exceeds ~15 gwei base fee.