Bitcoin fighting against the rising inflation around the globe is a tough task. Bitcoin won't be able to do this, and the market of bitcoin have started to coexist with the traditional market. As for me, bitcoin fighting against inflation is a long term process. Also, this has got the ability to make changes in individuals life in terms of fighting against inflation.
For example during the pandemic a food chain network was able to run successfully just because he kept hold of bitcoin. Even today more ways are available, but this isn't gonna give immediate results.
Topic: Bitcoin can fight inflation? - page 2. (Read 519 times)
The article in your post is garbage(no offense to you ofc). It tries to convince us that Bitcoin is a good investment to mitigate inflation, but it doesn't talk about its volatility even once.
Why isn't it a good investment?? It's probably the best investment right now if you can wait to be able to see the true value of it! Right now maybe it's not perfect to mitigate inflation just because you can't use it widely in a daily basis for the most common purchases, etc but in due time it will be. Otherwise, yes, it could help with the inflation problem if we had a parallel economy based on Bitcoin.
Check this pic: https://i.imgur.com/gpw2p5C.png
We have big institutions(mostly hedge funds) in crypto now, and bitcoin has become just another risk on asset.
It can be a good investment, iff bull market follows your purchase(or an overall booming ecnonomy). But during the time of recession, when inflation is high, it's anything but a good investment.
Well technically it can, how do I know this? Well simple really, if there is an inflation that literally means that the fiat is not worth as much as it used to. Something that you could buy for 10 bucks today, you will need to spend 12 bucks the other day, that is the definition of inflation. At the end of the day there is a good chance that we could see the exact same thing going on with bitcoin in that case as well.
So, if it is 20k today, due to inflation it would be 22k tomorrow. That type of stuff is the main reason why I believe bitcoin can fight inflation and help us. Of course, it is much more volatile than product prices, so while your milk could go from 4 bucks a gallon to 5 bucks, bitcoin goes from 20k to 60k.
So, if it is 20k today, due to inflation it would be 22k tomorrow. That type of stuff is the main reason why I believe bitcoin can fight inflation and help us. Of course, it is much more volatile than product prices, so while your milk could go from 4 bucks a gallon to 5 bucks, bitcoin goes from 20k to 60k.
Bitcoin will fight inflation to an extent. If you buy bitcoin now & check the price in 20 years your likely profit will be far bigger than the inflation that will take place over that time. Because of COVID & the war in Ukraine the world economy is on its ass, inflation is around 10% but that won’t continue. Once everything settles annual inflation will revert to normal like 4% per annum, maybe 3%.
Money in bitcoin long term will beat inflation.
Money in bitcoin long term will beat inflation.
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The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
Bitcoin should not and can not fight inflation. It's not the solution for underlying economic issues and is connected to the economic fluctuations such as inflation (as in it will feel it's negative effects).
Although, Bitcoin is not the answer to everything.
And BTC is still in it's infancy, it's not ready nor it can solve all of the economic issues.
Yes, Bitcoin is still in its infant stage since its client version still starts with zero but it gives individuals liberation from economic issues if not some organizations with the inclusion of institution wont have take back the bad thing they once said about Bitcoin. 
The article in your post is garbage(no offense to you ofc). It tries to convince us that Bitcoin is a good investment to mitigate inflation, but it doesn't talk about its volatility even once.
Why isn't it a good investment?? It's probably the best investment right now if you can wait to be able to see the true value of it! Right now maybe it's not perfect to mitigate inflation just because you can't use it widely in a daily basis for the most common purchases, etc but in due time it will be. Otherwise, yes, it could help with the inflation problem if we had a parallel economy based on Bitcoin.
It's trying to say that Bitcoin is a good investment because it's immune to inflation, but in the same breath, it admits that Bitcoin's prices swing up and down based on people's opinions 
.
So if you're thinking about investing in it to save yourself from "inflation", you'd better be prepared to ride the roller coaster lol
. So if you're thinking about investing in it to save yourself from "inflation", you'd better be prepared to ride the roller coaster lol
Volatility has nothing to do with inflation. Inflation isn't even the increase of prices. Increase of prices is a consequence of inflation. Inflation is a direct cause of money printing and/or the ration of new coins compared to the ones that are already incirculation.
In Bitcoin, the printing is every 10 minutes but the printed coins go down and down every halving event, so, there is no uncontrolled and unlimited printing, meaning that the percentage of new coins is mostly neglectable and will be even more over time until the 21 millions are all in circulation.
If he believes in Bitcoin, there won't be roller costers. He just DCAs in bear markets. Store it and hold. Wait for the adoption and then he may live better!
Bitcoin is a type of digital currency, whose value is not regulated by any central bank or any government. It also has limited supply, with only around 19 million bitcoins currently in existence. Thus, with such limited supply, it has to be priced, to some degree, differently than traditional currencies.
This means that a bitcoin's price will fluctuate with time, depending on how well it remains in demand. More demand equals higher bitcoin's price. It can, therefore, also fight inflation, because if the demand increases as inflation increases, the price will also increase in proportion. It is important to note, however, that it doesn't have to become the predominant currency to fight inflation.
This means that a bitcoin's price will fluctuate with time, depending on how well it remains in demand. More demand equals higher bitcoin's price. It can, therefore, also fight inflation, because if the demand increases as inflation increases, the price will also increase in proportion. It is important to note, however, that it doesn't have to become the predominant currency to fight inflation.
nothing can fight inflation because bitcoin isnt some politician in the treasury that can change the treasury policy..
in short inflation will happen.
but bitcoin can offer citizens an option to escape inflation.
(emphasis bitcoin on the bitcoin network. but not the tokens/units of pegged bitcoin on altnets/sidechains)
so just stay well clear of the sidechains/altnets and such that are pegging bitcoin. they are not the "value store" of deflationary bitcoin. they are just the temporary tools for features like faster payments. dont EVER think of altnets/sidechain/subchains as the place to lock up and store coins in long term. as they can de-peg/inflate from the btc amount very very easily, without notice. .. as easy as a software update on the altnet
frational reserve(inflation tool) is not possible on the bitcoin network. bitcoin is deflationary. but the sidechains and altnets pegged to bitcoin can change the pegs to fractional reserve their units/tokens, whereby the altnet/sidechain represented pegged coin is then inflationary.
in short you cant move bitcoin off the bitcoin network. it never moves off. so all these other token units on other altnets pretending to be bitcoin are not bitcoin.. they are other tokens which can easily break their limit/value/peg
in short inflation will happen.
but bitcoin can offer citizens an option to escape inflation.
(emphasis bitcoin on the bitcoin network. but not the tokens/units of pegged bitcoin on altnets/sidechains)
so just stay well clear of the sidechains/altnets and such that are pegging bitcoin. they are not the "value store" of deflationary bitcoin. they are just the temporary tools for features like faster payments. dont EVER think of altnets/sidechain/subchains as the place to lock up and store coins in long term. as they can de-peg/inflate from the btc amount very very easily, without notice. .. as easy as a software update on the altnet
frational reserve(inflation tool) is not possible on the bitcoin network. bitcoin is deflationary. but the sidechains and altnets pegged to bitcoin can change the pegs to fractional reserve their units/tokens, whereby the altnet/sidechain represented pegged coin is then inflationary.
in short you cant move bitcoin off the bitcoin network. it never moves off. so all these other token units on other altnets pretending to be bitcoin are not bitcoin.. they are other tokens which can easily break their limit/value/peg
If someone invests in Bitcoin over say 5 years, then from today’s perspective he can say that he outsmarted the system and in some way diminished the impact of inflation on his daily life. The example of a person who bought 1 BTC in early 2017 for about $1000 shows us that this person could have profited even x69 if he sold at the peak, but even a solid x20 if he would have sold the same BTC today.
In the long run, it makes sense to keep your valuables in Bitcoin, and in moments of crisis that will surely occur at least every 10-15 years, fiat will lose its purchasing power much faster than Bitcoin. Therefore, I would say that it is possible to fight inflation with the help of Bitcoin, but not in the way that some people think - Bitcoin is not magic money that will solve all our problems overnight.
In the long run, it makes sense to keep your valuables in Bitcoin, and in moments of crisis that will surely occur at least every 10-15 years, fiat will lose its purchasing power much faster than Bitcoin. Therefore, I would say that it is possible to fight inflation with the help of Bitcoin, but not in the way that some people think - Bitcoin is not magic money that will solve all our problems overnight.
What is inflation anyway? An increase in prices of products & services related to a certain currency.
Gold is renowned as the best inflation-hedge humanity had. In US this year's inflation is about 10-15% if I remember accurately. Did Gold increase with that amount? --> Heck no. It is a lagging indicator. People will choose to save in Gold because it is durable and has been historically used to store value by banks and states. So.. you see.. the society has a memory.
Bitcoin is still not mature enough to be stable during economic recessions because many people still view crypto as a risky asset. This is due to it being a rather new asset. We had Gold for thousands of years. Bitcoin is only here for about 13 years, BUT the adoption is rising, institutions are starting to integrate it.
I'd say that Bitcoin can be used to fight inflation, but only for the long-term. I find it useful to think of money as energy.
Gold is renowned as the best inflation-hedge humanity had. In US this year's inflation is about 10-15% if I remember accurately. Did Gold increase with that amount? --> Heck no. It is a lagging indicator. People will choose to save in Gold because it is durable and has been historically used to store value by banks and states. So.. you see.. the society has a memory.
Bitcoin is still not mature enough to be stable during economic recessions because many people still view crypto as a risky asset. This is due to it being a rather new asset. We had Gold for thousands of years. Bitcoin is only here for about 13 years, BUT the adoption is rising, institutions are starting to integrate it.
I'd say that Bitcoin can be used to fight inflation, but only for the long-term. I find it useful to think of money as energy.
Yes. Actually it's the only thing which will fight inflation, now and in 10 or 20 years. This is why I like keeping money in BTC and not in crappy fiat. Fiat is doomed, no matter how much you have. If you cash out to fiat buy a house, a property or something but never keep money in fiat, even in the banks, those money are losing value day by day.
Many people don't see the BTC potential here, but hey, not everybody can win right?
Many people don't see the BTC potential here, but hey, not everybody can win right?
Exactly this is what I believe that while the value of Fiat is going to remain the same. The value of bitcoin keeps on increasing year after year, and anyone with bitcoin in pocket need not to worry for its devaluation
For me bitcoin is just another dimension asset which is flourishing in its own universe. It has got no business to do with fiat system so it disconnect itself from that paradigm for sure. I also think it won’t help fight the inflation but we can use it overcome the financial challenges. I mean if we are going with the formula of one bitcoin equal one bitcoin (no dollar) then it’s surely gonna help “escape” it. Like the gold where we could rely on its revaluation in the future bitcoin can be used for future asset keeping.
What you need to know is Bitcoin doesn't have a burn mechanism to reduce the supply and the supply is limited not like fiat money, while fiat money who always face inflation have burn mechanism and not limited supply.
Bitcoin has burn addresses. You can send BTC to these addresses but no one owns the private keys to spend from them. So that's Bitcoin's burn mechanism. You can google Proof of Burn or Bitcoin burn addresses for more information if you want.I remember that someone said that some of these burn addresses were created by altcoin developers. I guess the goal is to remove a certain amount of BTC from the circulation to mint an X amount of altcoins.
No, I don't think Bitcoin could or should fight inflation. Bitcoin isn't out of the global economy. So the global economic collapse for any reason, Bitcoin wouldn't prevent. Bitcoin is a highly volatile cryptocurrency it can't make a stable global economy anyway. Don't expect too much, Bitcoin would be a great store value for the future and would keep a major role in the global economy. But can't fight inflation. Bitcoin itself is decentralized and no one can control it.
Bitcoin isn't supposed to prevent an economic crash. It can prevent inflation because the supply is finite, and deflationary by definition.
The current inflation of most currencies in the world are cause by the Ukrainian war, but not solely due to the war. A lot of the inflation was due to money printing in 2020 where the government though of the genius idea to pay people to stay home for a disease that has a 99.5 percent survival rate.
You think if a country's currency was Bitcoin only, they would elect to enforce lockdown measures? The only reason lockdowns were affordable was because most governments thought they could borrow from themselves (aka money print) and make up for it with future economic growth. Problem is, the economic growth fell behind and wage increases are unable to keep up with inflation.
Bitcoin could have prevented all this.
You need to think how the Bitcoin use cases and advantages first rather than think Bitcoin as a weapon to fight against inflation, help the poor, to become billionaire etc, because this will harm your mindset to think Bitcoin as a money making tool only. Bitcoin isn't created to fight against inflation, it also not fight against fiat money, not a charity to give away free money to poor people and not a quick profit like a shitcoins.
What you need to know is Bitcoin doesn't have a burn mechanism to reduce the supply and the supply is limited not like fiat money, while fiat money who always face inflation have burn mechanism and not limited supply.
What you need to know is Bitcoin doesn't have a burn mechanism to reduce the supply and the supply is limited not like fiat money, while fiat money who always face inflation have burn mechanism and not limited supply.
It both can and it can't.
Technically because bitcoin has limited supply it should not have any sort of inflation and its value should be stable. But the problem is that we are not yet at mass adoption levels which means the price is very volatile. On top of that we have a small market that can be manipulated at times. For example we saw how the recent crash took place due to panic sell and market manipulation.
Good news is that this is short term. In the long run the price is not affected by short term fluctuations or even crashes so the effects of inflation (in fiat) is well covered if you own bitcoin.
Technically because bitcoin has limited supply it should not have any sort of inflation and its value should be stable. But the problem is that we are not yet at mass adoption levels which means the price is very volatile. On top of that we have a small market that can be manipulated at times. For example we saw how the recent crash took place due to panic sell and market manipulation.
Good news is that this is short term. In the long run the price is not affected by short term fluctuations or even crashes so the effects of inflation (in fiat) is well covered if you own bitcoin.
The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
I think inflation as a problem is real and obviously there is no better solution for inflation than a deflationary currency, but I am curious even if bitcoin is implemented how will inflation go from our lives? Basically inflation is when the prices of the commodities are increasing thereby increasing the percentage of expenditure we do on a certain commodity. I think after bitcoin our percentage of expenditure would still remain the same as the price of the bitcoin will increase we will eventually get lesser income in our hands which too will be sort of an inflation in itself just something absolutely reverse. So how will this problem get solved? I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
Inflation is the increase of prices. Even if we imagine the most impossible scenario that everyone, including governments, switched to Bitcoin, inflation could still happen. Things like food or gas could still go up in price as a reaction to global events. Government and banks could still inflate supply of Bitcoin by creating debt and using some Bitcoin IOU tokens instead of real Bitcoin transactions, including LN.
ln msats
liquid Lbtc
binance wbtc
etc
they all will de-peg when they reach a x% userbase threshold.. its a waiting game of when not if...
and it wont need government intervention to cause it. the loyalists of the altnets will happily do it to themselves in efforts to make their altnet appear more utilised
Inflation is the increase of prices. Even if we imagine the most impossible scenario that everyone, including governments, switched to Bitcoin, inflation could still happen. Things like food or gas could still go up in price as a reaction to global events. Government and banks could still inflate supply of Bitcoin by creating debt and using some Bitcoin IOU tokens instead of real Bitcoin transactions, including LN.
The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .
Can someone help me to understand this further
Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/
Bitcoin should not and can not fight inflation. It's not the solution for underlying economic issues and is connected to the economic fluctuations such as inflation (as in it will feel it's negative effects). And BTC is still in it's infancy, it's not ready nor it can solve all of the economic issues.
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