Topic: Bitcoin and Inflation and why bitcoin? - page 2. (Read 275 times)

You are correct in focusing on the fact that BTC was worth nothing 10 years ago, and that is what needs to be taken into account when revaluing it. Most people compare the last peak value of bitcoin to the current price (which is now low) and draw conclusions from this, which I consider to be the wrong approach. From this position, it seems that bitcoin is a bad tool to fight inflation. In part, this is true if we evaluate it purely in a short period of time. But you need to scale your attention and make assessments considering the whole picture of what is happening, and not a piece of the puzzle, that is, in the long term. In this case, it immediately becomes clear that BTC does an excellent job of compensating for inflation and even more, due to the large profitability in case of holding for a long time (at least several years).

Since my introduction to bitcoin, I have been interested in this subject. I think the idea of an unregulated currency is very attractive, especially as it goes against how our economy is used to running.

For me, there are two reasons why bitcoin has the potential to succeed in the future
1) because new users want to invest and use the currency;
2) because one day it will be adopted by someone or a group of people who have a lot of money.

The first reason seems more likely because I believe that if more people start using the currency, then others will want to get in on the action although I don't expect this to happen quickly, especially in current conditions it could take a few years. one thing, I feel it's possible.

I think those people who seem to have found a weakness in Bitcoin's supposed purpose, which is to somehow avoid inflation, by pointing out that its price is also falling as inflation has gone through roof are not looking at the bigger picture. They're obviously nitpicking. And I think it is very easy to counter, if it's even worth responding to. You know, somebody points out that Bitcoin was $70,000 almost a year ago and is only $19,000 today. Look, that's not the starting point. Just a little over a decade ago, Bitcoin wasn't even a cent.

topic creator has it all entirely wrong

bitcoin was not suppose to stay at $75k. that $75k was a temporary bubble of inflation

imagine it this way

in 2021 the "value" (store of value) was $10k so while the PRICE speculatively bubbled upto $75k for just one day. that meant the store of value was  only 16%
yes the $75k was expected to correct

in 2022 the value (store of value) is was $15k
meaning the price of $19.6k is a store of value of 76%
this means when you buy bitcoin now you are locking in alot more value meaning more of your wealth is safe

bitcoin right now is a great time to buy

other assets
ethereum value is (due to pos merge) only $40
so with a speculative price of $1.3k means its store of value lock is about only 3%

gold with a $1.6k price and a $900 value is 56%

so bitcoin right now is a better store of value and deflationary asset
..
the reason why people are not buying into bitcoin right now is simple
fiat is inflating the spread of min wage vs cost of living means that holding fiat is bad. but real world products are increasing in price so people are on a product buying spree before the costs of products increases further. they are hoarding real world products. to invest against net years costs of living

once they have reached their product hoard limit... then they will invest again in assets once they have spare fiat. because yes they wont want to store value in fiat.

3BTC can buy a house in my country. maybe even 2 houses if you chose outside the city.
an early investor can look at BTC as a hedge which is really true when we zoom out.  of course for new investors it look different particularly to those who bought at the price peak.

In my country, I can buy a simple house with only 0.5 BTC. it's a bit higher in price than 2021, 0.25 BTC, so with situation I really thing on near future, with only 0.001 BTC I can buy a house, car and some expensive gadgets. I hope and begin to save my btc from signature campaign. Because USA always print the dollar always all they want.

Inflation's built into fiat currencies by the central banks which seems like a bizarre stipulation that most fiat users don't even think about. It's targeted at 2% yearly under stable currencies. Unstable currencies/economies would only dream of a 2% inflation rate. Losing 2% of your purchasing power year over year is massive, and that's in the best case scenario when the central banks can keep a balance on the economy. If they choose to ramp up the money printer, it'll reach a large multiple of 2%.

For folks that think Bitcoin's fluctuation in price is too much to handle, I'd argue that a guaranteed yearly loss on your purchasing power is worse.

Indeed, if you look at money from ancient times up to now, it is indeed much different in its purchasing power, and indeed it is different from bitcoin, bitcoin was previously low in price, and now the price has increased tremendously. so I personally totally agree if there are people who say that bitcoin is anti-inflation. because we have seen the history of bitcoin price.

We are in a time of crisis and I have to say that inflation is so high, it affects everything. A lot of people have been expecting bitcoin to exert its anti-inflation properties, and then things didn't go as expected, assets like bitcoin are not immune to short-term negative effects. I see that many people are starting to be negative and skeptical about bitcoin's ability to fight inflation.

But if we don't just look at the short term but look at the long term, looking to the future. We'll see what bitcoin can do.

+ In 2010: with 10,000BTC we will buy 2 pizzas.
+ In 2016: with 100BTC we can buy a car.
+ In 2022: with only 10BTC we will buy a house, maybe many countries will not need 10BTC to own a house, sometimes only 3BTC to 5BTC.


Just looking at these things, I can tell you that, if BTC is not the best anti-inflation asset, you won't find a second asset that is more inflation-resistant than BTC.

Let's feel for ourselves what is going on in our daily life, is this true? I believe you will have your own final answer.

source pic: https://www.facebook.com/BitcoinBlueWhale.eth/

Fiat is designed to die slowly.

source pic: https://www.facebook.com/BitcoinBlueWhale.eth/

This is always true if we zoom out and look at the history of bitcoin.


Buy bitcoins before it's too late.

https://twitter.com/BTC_Archive/status/1576954888184950785