Bitcoin can fight inflation? | Bitcointalksearch.org

gunhell16

hero member

Activity: 1666

Merit: 453

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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/

First of all, when we read or hear the word Bitcoin, it is not easy to understand because it is a very technical term, in terms of inflation, a hundred years have passed and there is no bitcoin.

This means that inflation can rise and fall suddenly depending on the situation facing a country. I can't imagine how Bitcoin can help inflation. But in the economy of every country that accepts bitcoin, maybe BitcoinBTCcan still help increase it.

Trapezium

newbie

Activity: 22

Merit: 0

I don’t know exactly about cryptos helping to fight inflation. But surely it can help as it helped Ukraine during the time of crisis,

asimi.io

copper member

Activity: 28

Merit: 0

Bitcoin is a successful inflation hedge, but investors need to be careful right now. I think yes bitcoin can fight inflation. It may take some time but surely will help us to fight inflation.

Clochaard

newbie

Activity: 22

Merit: 0

The main reason apart from making transactions easy and without the involvement of third parties, why the Bitcoin and cryptocurrencies were created is to fight and help in survival during inflation.

justdimin

hero member

Activity: 3164

Merit: 675

www.Crypto.Games: Multiple coins, multiple games

Quote from: m2017 on June 27, 2022, 05:04:00 AM

The question of inflation is painful and to answer it, you need to consider a specific country of residence + related conditions, such as local conflicts or pandemics. As you again accurately noted, the inflation rate is different everywhere. In some countries, investing in bitcoin will be better at offsetting inflation, in others it will be worse. But in general, it seems to me that in the long run, bitcoin still allows you to outperform inflation and allows you to save your funds better than some other financial instruments.

Why do people feel like they are not willing to wait a few years to make a profit though? I mean what is the point of that? I get that it is not a great deal and I get it, but it shouldn't really be something that creates a bit of a chaos with everyone right? It should be something that everyone could accept very easily because if they knew what would happen if they just could, they would take it but they are unsure and that is the only reason why they decline it.

The point here is that, if you tell someone "buy bitcoin now and wait 3 years and make a huge profit" they will argue against that, but if you tell people "you forgot some coins from 3-4 years ago and now you are rich" they would be super excited. That's the problem.

darkv0rt3x

hero member

Activity: 1274

Merit: 681

I rather die on my feet than to live on my knees

Quote from: hatshepsut93 on June 25, 2022, 04:48:02 PM

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.

Inflation is not an increase of prices. That's what we are told by our polititians. Increase of prices is a consequence of money printing and consequente loss of value of a currency.
Once more I suggest people to watch these 2 videos to have a better understanding of some of these basic concepts. These are 2 very good videos on what is going on uner the hoods of our economies!

The Great Reset
https://www.youtube.com/watch?v=MOm_QmnRBSs

How The System Keeps YOU POOR! (Money Myths That Keep You Broke) | Jaspreet Singh on Impact Theory
https://www.youtube.com/watch?v=42k9vH3OXI0

aoluain

legendary

Activity: 2436

Merit: 1362

Quote from: Lucius on June 28, 2022, 07:25:44 AM

Quote from: ChrisPop on June 28, 2022, 06:53:37 AM

~snip~
Doing the math Bitcoin could still multiply 28 times from current price just to match Gold's market cap. Not bad at all if you ask me.
$20k x 28 = $560,000
As you said Lucius, 50 times is a little bit out of the range, but anything can happened with this inflation.

I wouldn't even say that the problem is that Bitcoin can't reach some value measured in fiat, but due to its speculative-volatile nature it will always be a problem how to keep that value - which leads us to the problems with trust that people have in Bitcoin long term. People are usually unable to bear to have their investment lose more than 50% in a matter of few months, or in less than 48 hours if we remember what happened in March 2020.

That will always be a problem with Bitcoins volatility especially with the +50%
drops. Newcomers dont necessarily realise not to sell low, although I really believe that
people dont realise that. Of course for seasoned Bitcoiners its not an issue,
just opportunity.

Quote from: Lucius on June 28, 2022, 07:25:44 AM

Quote from: ChrisPop on June 28, 2022, 06:53:37 AM

~snip~
Doing the math Bitcoin could still multiply 28 times from current price just to match Gold's market cap. Not bad at all if you ask me.
$20k x 28 = $560,000
As you said Lucius, 50 times is a little bit out of the range, but anything can happened with this inflation.

From personal experience, more and more people are looking for some new coins that will bring them x50 or x100 or even higher profits because they perceive Bitcoin as something that is no longer so profitable. Although gold and Bitcoin have some common features, they are still two different worlds and therefore I think that gold will remain a far more accepted asset than Bitcoin for a very long time. Not only because gold is better (although it also has its drawbacks), but for the average person it is far more understandable than Bitcoin and has many more applications if we consider only jewelry making and application in electronics making.

Yes, raw proof is the DOGE craze we saw not so long ago and the traction it got. Total
newbies got sucked in and probably got spat out too.

Gold for sure is still far more accepted purely because it is far more stable. I wonder if many
"traditional" investors holding Bitcoin liquidated into Gold?

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

Quote from: ChrisPop on June 28, 2022, 06:53:37 AM

~snip~
Doing the math Bitcoin could still multiply 28 times from current price just to match Gold's market cap. Not bad at all if you ask me.
$20k x 28 = $560,000
As you said Lucius, 50 times is a little bit out of the range, but anything can happened with this inflation.

I wouldn't even say that the problem is that Bitcoin can't reach some value measured in fiat, but due to its speculative-volatile nature it will always be a problem how to keep that value - which leads us to the problems with trust that people have in Bitcoin long term. People are usually unable to bear to have their investment lose more than 50% in a matter of few months, or in less than 48 hours if we remember what happened in March 2020.

From personal experience, more and more people are looking for some new coins that will bring them x50 or x100 or even higher profits because they perceive Bitcoin as something that is no longer so profitable. Although gold and Bitcoin have some common features, they are still two different worlds and therefore I think that gold will remain a far more accepted asset than Bitcoin for a very long time. Not only because gold is better (although it also has its drawbacks), but for the average person it is far more understandable than Bitcoin and has many more applications if we consider only jewelry making and application in electronics making.

ChrisPop

legendary

Activity: 2310

Merit: 1035

Not your Keys, Not your Bitcoins

Quote from: Lucius on June 28, 2022, 04:53:21 AM

The facts speak for themselves, and those who have been on this forum since the time when 1 BTC was worth only a few hundred $ know how smart it was to invest in the same, money or your time, in the end, didn’t even matter from today’s perspective. Bitcoin has proven to be an excellent investment in the long run, so although past results do not guarantee future results, I am of the opinion that Bitcoin is still a good investment, although it is not realistic to expect it to be worth 50 times more in 5 years than today.

Yes, this is something similar to the law of diminishing returns. I like to refer to Bitcoin's market cap in comparison to other assets in order to assess the potential in the medium to long-term. I like comparing with Gold's market cap as it is the most similar asset in terms of its use, but yet so different in its properties.

Gold = $11.5 trillion dollars
Bitcoin = $405 billion dollars

Doing the math Bitcoin could still multiply 28 times from current price just to match Gold's market cap. Not bad at all if you ask me.
$20k x 28 = $560,000

As you said Lucius, 50 times is a little bit out of the range, but anything can happened with this inflation.

aoluain

legendary

Activity: 2436

Merit: 1362

Quote from: edgycorner on June 25, 2022, 03:24:44 PM

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.

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 Huh

.
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

The simple fact that FIAT is devaluing, our FIAT is no longer able to buy the same goods
it was able to 12+ months ago should be enough for people to look elsewhere and protecting
their savings/wealth.

Michael Saylor started talking about this about 18months ago referring to the "block of ice"
melting in front of your eyes.

If you can look past Bitcoins market movements and consider it long term, its the best
safe haven for wealth/savings preservation.

Unfortunately too many focus on what Bitcoin is doing NOW.

Thara20

newbie

Activity: 20

Merit: 0

No bitcoin cannot fight inflation as the hype surrounding bitcoin is fluctuating. As crypto itself is a volatile market , bitcoin cannot sustain people out of a global crisis. Bitcoin cannot help fight inflation but can help those people who own it , take a softer blow. As many factors come into play when it comes to inflation like regions , price of gold and silver etc. Inflation is connected to global events and things like fuel , food can increase but bitcoin isn’t adopted at mass levels. So it technically cannot be a solution for inflation.

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

Quote from: ChrisPop on June 27, 2022, 04:55:05 AM

Let's look at the facts. I have pulled the historical annual returns of Bitcoin since 2011 and the inflation rate of the US dollar.

The facts speak for themselves, and those who have been on this forum since the time when 1 BTC was worth only a few hundred $ know how smart it was to invest in the same, money or your time, in the end, didn’t even matter from today’s perspective. Bitcoin has proven to be an excellent investment in the long run, so although past results do not guarantee future results, I am of the opinion that Bitcoin is still a good investment, although it is not realistic to expect it to be worth 50 times more in 5 years than today.

Quote from: m2017 on June 27, 2022, 05:04:00 AM

But in general, it seems to me that in the long run, bitcoin still allows you to outperform inflation and allows you to save your funds better than some other financial instruments.

I agree, although I would always stress that we should be careful not to put all our eggs in the same basket - because although Bitcoin has great potential, it still depends on the availability of the Internet, and even more on how the world's most influential governments treat it. Any ban on trading through CEX globally or even treating possession as a criminal offense would have a detrimental effect on the price.

dansus021

copper member

Activity: 2156

Merit: 983

Part of AOBT - English Translator to Indonesia

Quote from: Smack That Ace on June 27, 2022, 11:50:30 AM

Bitcoin has a limited supply and is seen as an anti-inflation tool, but maybe that will only be true if we buy and hold it for the next 5 or 10 years, over time fiat will depreciate because the government will continuously printing money and bitcoin is only 21 million dong, bitcoin will increase in price.

Currently, bitcoin is considered as a highly volatile asset class so it is unlikely to become an inflation hedge for the time being, so don't get too excited and overvalued bitcoin in this situation.

this is what I am gonna to say.

government is same like eth did and other coin with unlimited supply but the main difference is the gov don't have a burning mechanism that transparent too see and we don't know how much really are the money in circulation. the bitcoin show in the past that can fight again inflation like gold did but the high volatile is become our largest enemy right know

Smack That Ace

legendary

Activity: 1974

Merit: 1108

Free Free Palestine

Bitcoin has a limited supply and is seen as an anti-inflation tool, but maybe that will only be true if we buy and hold it for the next 5 or 10 years, over time fiat will depreciate because the government will continuously printing money and bitcoin is only 21 million dong, bitcoin will increase in price.

Currently, bitcoin is considered as a highly volatile asset class so it is unlikely to become an inflation hedge for the time being, so don't get too excited and overvalued bitcoin in this situation.

JohnBitCo

sr. member

Activity: 2030

Merit: 356

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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

Yes, bitcoin is a hedge against inflation as it is limited in supply and can be a perfect alternative to the fiat currency.

However, the current economic pressure and increase in global inflation haven't been a deciding factor for people to invest in bitcoin. People are yet to recognize bitcoin's potential. Soon people will recognize the importance of bitcoin when they see their paper money constantly losing its value.

virasisog

hero member

Activity: 1820

Merit: 537

Quote from: DeathAngel on June 26, 2022, 09:33:31 AM

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.

The inflation is out of cryptocurrencies' control and it can't stop its continuous rise. There are lots of factors that affect the current inflation rate and Bitcoin as a currency can't solve the problem but it will help us ordinary people who invest in it survive the inflation crisis through the profit that we could get on it and the opportunities that the crypto world offers. This inflation is a global economic crisis and since there are still lots of people that don't use or invest in Bitcoin, BTC could no way solve this inflation issue.

m2017

legendary

Activity: 1792

Merit: 1296

Crypto Casino and Sportsbook

Quote from: Lucius on June 27, 2022, 04:41:26 AM

Quote from: DeathAngel on June 26, 2022, 09:33:31 AM

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.

So how many people will find that they are willing to wait 20 years to profit from their investment? Even if it is 10 years it is still a small percentage of people who are willing to make long-term investments. If you tell a man today to invest the amount of x in Bitcoin, and that in 2-3 years he will make a potential profit of at least x5, will he listen to you? The fact is that most still do not buy during the bear market, and will only buy when the price goes up.

You raise interesting questions in this thread and rightly point out that most people are not willing to wait a few years to make a profit. Everyone wants mountains of gold right here and right now, and the thirst for profit wakes up only in a bull market.

Quote from: Lucius on June 27, 2022, 04:41:26 AM

Inflation is around 10% in some countries, but close to 20% in others, while some countries such as Turkey and Argentina exceed 60% or even 70%. The question is how long it will take for the situation to return to normal, but it will certainly not be quick - it will probably take at least a few years and will depend on whether we have a virus outbreak again in a few months (the EU already has a big jump in some countries) and whether the war in Eastern Europe will continue for another 3 months or 3 years.

The question of inflation is painful and to answer it, you need to consider a specific country of residence + related conditions, such as local conflicts or pandemics. As you again accurately noted, the inflation rate is different everywhere. In some countries, investing in bitcoin will be better at offsetting inflation, in others it will be worse. But in general, it seems to me that in the long run, bitcoin still allows you to outperform inflation and allows you to save your funds better than some other financial instruments.

ChrisPop

legendary

Activity: 2310

Merit: 1035

Not your Keys, Not your Bitcoins

Quote from: Lucius on June 27, 2022, 04:41:26 AM

So how many people will find that they are willing to wait 20 years to profit from their investment? Even if it is 10 years it is still a small percentage of people who are willing to make long-term investments. If you tell a man today to invest the amount of x in Bitcoin, and that in 2-3 years he will make a potential profit of at least x5, will he listen to you? The fact is that most still do not buy during the bear market, and will only buy when the price goes up.

Inflation is around 10% in some countries, but close to 20% in others, while some countries such as Turkey and Argentina exceed 60% or even 70%. The question is how long it will take for the situation to return to normal, but it will certainly not be quick - it will probably take at least a few years and will depend on whether we have a virus outbreak again in a few months (the EU already has a big jump in some countries) and whether the war in Eastern Europe will continue for another 3 months or 3 years.

Let's look at the facts. I have pulled the historical annual returns of Bitcoin since 2011 and the inflation rate of the US dollar.

I don't think there is anything to add. There is no doubt that the returns Bitcoin offers on the medium to long term are way above inflation. Even if the dollar collapses and we have an inflation of 50%, The BTC returns still massively outweigh the inflation historically. Just keep in mind that past results are not indicative of future results. Wink

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

Quote from: DeathAngel on June 26, 2022, 09:33:31 AM

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.

So how many people will find that they are willing to wait 20 years to profit from their investment? Even if it is 10 years it is still a small percentage of people who are willing to make long-term investments. If you tell a man today to invest the amount of x in Bitcoin, and that in 2-3 years he will make a potential profit of at least x5, will he listen to you? The fact is that most still do not buy during the bear market, and will only buy when the price goes up.

Inflation is around 10% in some countries, but close to 20% in others, while some countries such as Turkey and Argentina exceed 60% or even 70%. The question is how long it will take for the situation to return to normal, but it will certainly not be quick - it will probably take at least a few years and will depend on whether we have a virus outbreak again in a few months (the EU already has a big jump in some countries) and whether the war in Eastern Europe will continue for another 3 months or 3 years.

348Judah

hero member

Activity: 714

Merit: 521

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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

One of the benefits in dealing with bitcoin is in its ability to work against inflation and one of the means in which this happen is by having an investment in bitcoin, this is a digital currency that has a great potential to rise and give room for realizing profits, any currency that can appreciate with time and be use as a good source for a store of value and asset is a good example of the coin that fight inflation and its impading influence, bitcoin is a good and best available option of an investment that work against inflation.

KennyR

hero member

Activity: 2310

Merit: 532

Enterapp Pre-Sale Live - bit.ly/3UrMCWI

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.

edgycorner

sr. member

Activity: 1064

Merit: 382

Hurrah for Karamazov!

Quote from: darkv0rt3x on June 26, 2022, 08:47:07 AM

Quote from: edgycorner on June 25, 2022, 03:24:44 PM

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 can be a good investment, but there's an equal chance of your investment becoming bad, real quick. There's one thing for definite tho, when there's a stress on the global economy then Bitcoin crumbles too.

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.

FanEagle

legendary

Activity: 2884

Merit: 1117

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.

DeathAngel

legendary

Activity: 3304

Merit: 1617

#1 VIP Crypto Casino

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.

suzanne5223

hero member

Activity: 2660

Merit: 651

Want top-notch marketing for your project, Hire me

Quote from: TheNineClub on June 25, 2022, 03:49:45 PM

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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/

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).

I think you misunderstand what OP is trying to point out because if we judge by the concept used to create Bitcoin. Yes, it can fight economic inflation which is simply the act of decline in the value of money and for the record, this is the reason why Satoshi created Bitcoin. Besides, this is the major reason why we see institutions that once said negative things about Bitcoin now among those that invest in it.
Although, Bitcoin is not the answer to everything.

Quote from: TheNineClub on June 25, 2022, 03:49:45 PM

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.

darkv0rt3x

hero member

Activity: 1274

Merit: 681

I rather die on my feet than to live on my knees

Quote from: edgycorner on June 25, 2022, 03:24:44 PM

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.

Quote from: edgycorner on June 25, 2022, 03:24:44 PM

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 Huh

.
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!

Stalker22

legendary

Activity: 1526

Merit: 1359

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.

franky1

legendary

Activity: 4410

Merit: 4766

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

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

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.

ChrisPop

legendary

Activity: 2310

Merit: 1035

Not your Keys, Not your Bitcoins

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.

Flyingjack123

jr. member

Activity: 66

Merit: 2

Quote from: virtualdn on June 25, 2022, 03:14:06 PM

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?

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

so98nn

hero member

Activity: 2114

Merit: 603

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.

Pmalek

legendary

Activity: 2730

Merit: 7065

Quote from: Despairo on June 26, 2022, 02:34:10 AM

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.

Gyfts

legendary

Activity: 2828

Merit: 1515

Quote from: The Cryptovator on June 25, 2022, 02:12:31 PM

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.

Despairo

hero member

Activity: 1064

Merit: 843

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.

pooya87

legendary

Activity: 3472

Merit: 10611

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.

teosanru

hero member

Activity: 2114

Merit: 619

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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?

franky1

legendary

Activity: 4410

Merit: 4766

Quote from: hatshepsut93 on June 25, 2022, 04:48:02 PM

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

hatshepsut93

legendary

Activity: 3024

Merit: 2148

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.

TheNineClub

full member

Activity: 616

Merit: 161

Quote from: Flyingjack123 on June 25, 2022, 01:53:48 PM

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/

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.

edgycorner

sr. member

Activity: 1064

Merit: 382

Hurrah for Karamazov!

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.

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 Huh

.
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

virtualdn

legendary

Activity: 1358

Merit: 1093

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?

sklopan

jr. member

Activity: 98

Merit: 2

I think yes. In general, I think that bitcoin made such a peak for the reason that the market is also not in the best situation now. But, we will see the result soon, I think.

darkv0rt3x

hero member

Activity: 1274

Merit: 681

I rather die on my feet than to live on my knees

Quote from: The Cryptovator on June 25, 2022, 02:12:31 PM

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.

You're talking in a short period of time, right? Otherwise, why can't Bitcoin be part of the global economy? It already is part of it. Small part, but it already is part of it! Bitcoin is not meant to prevent any collapse, is meant to replace the collapsed system. And it is still volatile just because there is still not enough liquidity to be able to absorbe the bigger transactions, that's all. We need to give it time for adoption, education, etc. Bitcoin is and will still be perfect for storage of value and also as a global economy. Don't forget that LN is part of the Bitcoin ecosystem.

hugeblack

legendary

Activity: 2702

Merit: 4002

Do you mean global or local rates or related to individuals? Inflation is due to several reasons and to hedge them, several things vary from gold to silver to real estate and Bitcoin, and therefore knowing the causes of inflation will help in choosing the ideal tool.

As for the solution, it cannot be done without diagnosing the issue.

dothebeats

legendary

Activity: 3542

Merit: 1352

Cashback 15%

It does not fight it, it just helps soften the blows to people who already has it. It was never meant to be a solution to economic problems and save everyone in the first place. Even bitcoin loses a ton of its value during bad economic conditions, so I'm not sure how people still believe that it does not and will not lose its value and be a solution to inflation.

Keep some bitcoins and help yourself, but do not expect that bitcoin can retain that value 100% of the time. It's not a magical object that is immune to anything negative, it has its flaws too, so better stop believing that it's here to always save the day.

The Cryptovator

legendary

Activity: 2394

Merit: 2223

Signature space for rent

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.

Flyingjack123

jr. member

Activity: 66

Merit: 2

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/

Topic: Bitcoin can fight inflation? (Read 518 times)