Bitcoin as an hedge for inflation | Bitcointalksearch.org

Gormicsta

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Quote from: Frankolala on March 26, 2024, 11:12:40 AM

It is clear that soon, bitcoin would be use as reserve currency by most countries, especially countries with poor economy. I believe that after Argentina have seen the value of bitcoin that Bukele bought as the country reserve currency has increased so much in value, Javier Milie have decided to take a bold step to invest the country's funds into bitcoin.

Anything fiat currency is must depreciate in value because as time passes by, the cost of products and commodity will be on increasing due to inflation, and government will keep on printing more money to increase the inflation level, thinking that is the best idea. Bitcoin is an hedge to inflation because as fiat value depreciates overtime, bitcoin value increases overtime. This is the main reason why bitcoin investment is the one of the best investment to invest in to safe the value of your funds in future.

Bitcoin no dey under any central control, so e no fit dey suffer from di kind manipulation wey fit happen to other currencies wey central banks dey control. Also, since Bitcoin dey limited to only 21 million coins, e get natural scarcity wey fit make am increase for value over time. On top of that, Bitcoin dey decentralized and worldwide, e no dey subject to di kind political and economic disruptions wey fit affect other currencies. So, Bitcoin get the kind security and stability wey other assets no fit give. All dis things fit make Bitcoin dey help person hedge against inflation. But, e get some risk wey dey come with using Bitcoin to hedge against inflation. First, di price of Bitcoin dey fluctuate a lot, so e no dey as reliable as gold or silver when e come to storing value. Also, since Bitcoin na new technology, we no dey sure how e go behave for economic crisis, or if government go decide to crack down on am. So, before you go decide to use Bitcoin to hedge against inflation, you need to weigh the risk and the reward well.

Frankolala

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It is clear that soon, bitcoin would be use as reserve currency by most countries, especially countries with poor economy. I believe that after Argentina have seen the value of bitcoin that Bukele bought as the country reserve currency has increased so much in value, Javier Milie have decided to take a bold step to invest the country's funds into bitcoin.

Anything fiat currency is must depreciate in value because as time passes by, the cost of products and commodity will be on increasing due to inflation, and government will keep on printing more money to increase the inflation level, thinking that is the best idea. Bitcoin is an hedge to inflation because as fiat value depreciates overtime, bitcoin value increases overtime. This is the main reason why bitcoin investment is the one of the best investment to invest in to safe the value of your funds in future.

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Base on this news by Punch : https://punchng.com/argentines-abandon-dollars-for-bitcoin-to-tackle-inflation/

The citizens of Argentina has been looking for ways to fithe first week of March, the number of weekly Bitcoin purchases in the country increased to 34,700. That was more than double the number of buyers in February.

Argentina citizens finding a way to fight against Inflation and now opt for Bitcoin.
In the first week of March, the number of weekly Bitcoin purchase surge to 34,700, which is more than double of buyers in February.

Quote from: https://punchng.com/argentines-abandon-dollars-for-bitcoin-to-tackle-inflation/

The US dollar has been the go-to currency for Argentines in times of high inflation and instability, especially as the country’s economic woes often deteriorate the value of the peso.

The dollar has become widespread in Argentina and is even used to pay company salaries and Airbnb rentals.

However, over the last two months, the peso has gained 10 per cent on the dollar, reducing the appeal for the US dollar in the country.

Like the dollar, there is also a decline in demand for digital currencies tied to real-world currencies. Demand for Such digital tokens declined by 60 per cent to 70 per cent during Bitcoin’s price surge.

Recall that last year, Argentine President, Javier Milei, during his electoral campaign sold voters on the promise of dollarising Argentina’s economy.

However, since taking office in December, he has only devalued the official peso-to-dollar, saying it will take a long while before dollarisation becomes approachable.

Bitcoin is increasingly seen as a hedge for inflation around the world and Argentines are increasingly buying into it to fight the enormous 276 per cent inflation in their country.

Here is a proof that shows that even if our government decides to pay workers with dollars or fiat currency inflation will likely not seized because in Argentina, this is same situation they are experiencing though they are paid in dollar that didn't reduce inflation but since they opt for Bitcoin, their currency has added 10% in value in peering to dollar.

This is something some Nigerians, all of us here are aware of but there are still many Nigerians who will still want to hold dollar or any other stable coin or fiat currency instead of HODLing bitcoin but thank God for this current bull and coming halving which will bring more Nigerians to investing in bitcoin.

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