It’s really not. It is highly correlated with high risk assets and growth shares. It is anything but an inflation hedge, which is why it has been plunging as inflation rises and will fall more if interest rates rise.

If it were an actual currency things might be different, but instead it’s just another high risk speculative asset.

Both cryptocurrencies and stocks are traded with leverage these days, and central banks control the price of leverage. So, if central banks decide to start raising interest rates, asset prices will go down because leveraging becomes more expensive.