This US CPI-pegged token outperforms Bitcoin as an inflation hedge
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. In this context, the Frax Price Index (FPI) — a token created in the Frax Finance ecosystem supposedly pegged 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. FPI price chart since inception. Source: CoinMarketCap 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. “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 repor...