A new analysis presented in a recent article suggests that much Bitcoin demand comes from Tether.If Tether is highly leveraged, or allows the end-users to aggressively leverage, their exposure to the cryptocurrency, then it could be the sign of a bubble.If (when) the Bitcoin bubble pops, who would benefit? I point out the similarity of gold and Bitcoin in terms of the inflation hedge goal by investors.A sharp and sustainable drop in Bitcoin would leave investors scrambling: What do we do for an inflation hedge now?Having been burned on Bitcoin, those investors may instead seek exposure to the most classic inflation hedge of them all: gold.
