Do gold or cryptocurrencies protect us from a fall in the value of conventional money? Recent events suggest not.
I say this because US inflation expectations have risen recently: the gap between five-year US Treasury yields and their inflation-proofed counterparts has risen to close to a 15-year high. This means that markets expect the value of money to decline at a faster rate than normal in coming years.
Such expectations should have been good for assets that are alternatives to conventional money. But they have not been. The gold price in dollar terms is much the same as it was at the start of the year, and Bitcoin has fallen by a third since early April.