Silver or Gold: Water150 Answers the Inflation Hedge Question Once and For All

To define it simply, a hedge against inflation is any investment considered capable of protecting against the declining purchasing power of a currency due to inflationary or macro-economic pressure on its value. 

Inflation hedges typically meet two critical criteria — scarcity and demand. They are hard to find in nature (scarcity), and people trust them enough to park resources into them during uncertain times (demand). 

The list of options is growing when it comes to protecting wealth from currency dilution — gold, silver, crude oil (liquid gold), copper, platinum, and more recently, digital assets like Bitcoin have even entered the conversation. 

However, projects like Water150 have gained prominence due to the realization that the Earth is in a perpetual loop of ever-increasing demand for scarce water resources. 

Water150 Becomes the Premier Custodian of Blue Gold 

Even the gold standard (pun intended) in inflation hedging has been known to post lukewarm performances, especially during periods of economic stability. 

Ironically, most inflation hedges benefit from the demand loop set off by crisis periods because investors start looking for alternative assets to protect their purchasing power. For example, gold, which has outperformed the likes of silver, platinum, and palladium in recent times, endured a lukewarm 2021-2022 after recording a 28% jump in the Covid year of 2020. 

The precious metal is back to setting new price all-time highs since late 2024 as investors seek alternatives to reduce exposure to the macroeconomic factors pounding the greenback. 

However, the “Trillion Dollar Man” Dan Pena is already backing water to be “the next Bitcoin,” while others have dubbed it “blue gold” because the resource is scarce and demand is bound to continue to rise steadily. 

About 3% of Earth’s water is fresh water, with only about 0.3% found in surface bodies like lakes, rivers, and swamps. One-third of the world’s cities rely on these surface water sources. Overall, only about 1.2% of the Earth’s water can be used as drinking water, even though projections indicate that urban water demand is primed for a dramatic 80% surge by 2050. 

Cue Water150 by the Longhouse Foundation, an innovative project that aims to secure and tokenize premium quality spring water in a global ecosystem of natural water wells for holders of its MiCAR-compliant native utility token W150 and the annually issued DROP voucher. 

In essence, Water150 is developing a system that secures 150 years of water rights for W150 holders, similar to how banks, ETFs, and other custodians securely hold inflation hedge assets for investors. 

Water150 will only issue 210 billion liters (and tokens) throughout its lifetime, with an initial batch of 66 million liters already stored in its first well in Sätra Brunn. Its third-party audit partner Cedra will ensure that every unit of W150 token/DROP voucher that will ever be issued in the Water150 ecosystem is transparently and credibly backed by a corresponding volume of spring water secured in a Water150-controlled well at a 1 token/voucher to 1 liter of water ratio. 

If a capped supply sounds familiar, it’s because that’s the same deflationary model as Bitcoin. The tokenomic model was designed to prevent asset dilution, unlike traditional inflation hedges like gold or silver, where the discovery of a new gold mine will add more gold into circulation, ultimately affecting the value of holdings.

The New Playbook to Inflation Hedging Is Still Being Written

The US Federal Reserve finally cut interest rates for the first time in 2025 after nine months of pressure from the President of the United States. On one hand, President Trump cited inflation numbers in his push for a cut. Ironically, the central bank’s board quoted the same inflation outlook in its counter. 

Why did it take so long? Maybe we’re finally starting to see that inflation is one tough nut to crack, and hedging against it is not as simple as simply buying gold. 

So, one final time: silver or gold? 

You could make a good argument for either as a hedge against inflation, and you’d be somewhat correct. However, inflationary pressures are different in 2025 than in previous years, and failure to adjust to the times means you could be losing leverage on your hedges. 

If you want to know more about Water150 and if it’s the right inflation hedge for you, you can find more information about the project in its whitepaper.

About Water150: Water150 is an innovative blockchain-based project created by the Longhouse Foundation, aimed at securing access to premium spring water through a secure, tokenized ecosystem. Led by Longhouse Water150 S.A. in Luxembourg, it connects certified wells—starting with historic sources like Sätra Brunn—to a network of 1,000 springs, managed under the rigorous Longhouse Water Quality Standard for purity and sustainability. Water150 empowers users to secure long-term water rights, fostering a transparent, 150-year vision of hydration backed by real-world assets.

Disclaimer: This crypto-asset marketing communication has not been reviewed or approved by any competent authority in any Member State of the European Union. The offeror of the crypto-asset is solely responsible for the content of this crypto-asset marketing communication. For full details, see the WATER150 whitepaper at wp.water150.io or contact Water150 S.A. at info@water150.io