Topic: Bitcoin Not a Hedge Against Inflation?? - page 2. (Read 461 times)
It was in a way, intended to be a hedge against traditional markets and assets and be used by public but, with the involvement with large institutions, it has turned into something very similar to the market we were supposed to be hedging against. At least that's my theory. At this point, all the markets are interconnected. Only once all the BTC has been mined and the demand keeps up. We might actually reach a stage where we are free of heavy market manipulation and Crypto/Bitcoin actually turning into a hedge.
Bitcoin is largely an asset. It follows supply and demand dynamics. Now it is deflationary as mining reward halves every 4 years, but if the demand for BTC is not maintained then price will fall. Thats what is happening.
You also have to look at mining power which I suspect would be reduced these days with random regulations and of course energy price inflation.
At the moment we also have a lot of companies ready to liquidate their Bitcoin due to sudden depreciation of its value. This is just gonna keep pushing price down.
There is no easy way in life to make money. This is true for Bitcoin. It's not some magic thing that will keep going up and up and up. It's an asset and buying it has risk, crazy risk. It's up to you to take that risk.
You also have to look at mining power which I suspect would be reduced these days with random regulations and of course energy price inflation.
At the moment we also have a lot of companies ready to liquidate their Bitcoin due to sudden depreciation of its value. This is just gonna keep pushing price down.
There is no easy way in life to make money. This is true for Bitcoin. It's not some magic thing that will keep going up and up and up. It's an asset and buying it has risk, crazy risk. It's up to you to take that risk.
I have said this in another post as well, it's because there is a feedback loop where the people selling their coins are doing so because the price has previously gone down during inflation (as a result of previous traders selling their coins).
Now obviously this feedback loop has to have a beginning to it, and I can trace it it the moment when some people (wrongly) thought that Bitcoin would go down with the inflation, so they anticipated that by selling their coins, and their actions helped to cause the drop that they had feared.
Now obviously this feedback loop has to have a beginning to it, and I can trace it it the moment when some people (wrongly) thought that Bitcoin would go down with the inflation, so they anticipated that by selling their coins, and their actions helped to cause the drop that they had feared.
Bitcoin was supposed to be here for our survival. Now it is becoming just a digital number on a computer screen that never had any value all along.
What am I missing here?
No, you were just told that BTC was created to hedge the inflation. It was actually created to milk the simple-minded.
It is if you play the long game. People who bought btc at 1000 dollars a decade ago watched in horror as the first major bull market turned bear. imagine putting 1000s of dollars just to watch it turn into 100s. No doubt many people sold and lost out. But the ones who held are now legends among men. They are millionaires now.
Can you pointed out to me where did Satoshi said Bitcoin was created to hedge against inflation? You can search on both Bitcoin whitepaper and his posts in this forum. Bitcoin do can hedge against inflation, but you shouldn't expect all on all situations Bitcoin price will always increase. Bitcoin price are determined between demand and supply, you can't control the demand since it's depends on all traders/buyers.
If you don't believe Bitcoin can hedge against inflation, you can do research how much Bitcoin worth on 10 years ago and right now, compare with how much USD worth on 10 years ago and right now.
If you don't believe Bitcoin can hedge against inflation, you can do research how much Bitcoin worth on 10 years ago and right now, compare with how much USD worth on 10 years ago and right now.
Bitcoin was in some aspect created to act as a hedge against inflation.
Wrong.Bitcoin was created as an alternative to the corrupt centralized financial system so that people have another choice for a currency.
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More or less it's value was supposed to go up as FIAT value goes down.
That still holds true but in long term not short term and when market manipulation is at an all time high.Quote
Many of us got Bitcoin years ago as for it to be something that would go up in value and give people better level of wealth, or at least at as a survival key.
Well as I've been saying for the past 8 years, bitcoin is not something you buy to make profit.Quote
However it seems with FIAT going down, so is more of Bitcoin and other cryptos.
Other cryptos aka the altcoins have always been going down. For example ever since 2018 all altcoins without exception lost their value for example the biggest shitcoin of all times called ethereum has been sitting at half of its 2017 price against bitcoin. It was only bitcoin that not only went back up but surpassed its previous ATH.Quote
Bitcoin was supposed to be here for our survival. Now it is becoming just a digital number on a computer screen that never had any value all along.
That's your view because you bought bitcoin to become rich. Otherwise bitcoin is exactly as it was back in 2009, a decentralized censorship resistant currency.
Gold hasn't done too well either. Crypto was driven up by covid money printing / speculation. Now the governments are soaking up all those excess dollars to try to rein in the hyperinflation they caused. Bitcoin was $3000 when covid hit. Why wouldn't it go back to $3000? I'll be nice, $6000. That sounds more reasonable. $22,000 is still way too high. And as for ethereum: the protocol makes no sense until the transaction fees are fixed.
The theory is because Bitcoin's supply is fixed, it must go up when fiat goes down. But the reality is not so simple, there are many factors that determine Bitcoin's price, and fixed supply is only one of them. For the last few years Bitcoin demonstrated correlation with stock market and general economy. It wasn't a full 1:1 correlation, but whenever stock market crashed, Bitcoin usually crashed too, but eventually Bitcoin recovered regardless of stock market.
Today's crash is just like that - a short-term panic caused by the stock market. Sooner or later Bitcoin will recover, nothing has changed fundamentally.
What can considered as a hedge against inflation. It is something that never drops the investment value unlike the market. What we're experiencing here is completely against it. Just think of a person investing $27000 yesterday and today it is $22k. So, the limited supply makes it a hedge against inflation and this isn't effective all the time. The recovery happens for sure, and now the market is getting more dependent on the traditional market. Today's crash is just like that - a short-term panic caused by the stock market. Sooner or later Bitcoin will recover, nothing has changed fundamentally.
Do your analysis taking the whole bitcoin period into consideration and not only one bearish market/crashed scenario. Bitcoin is doing well against inflation on long run, that is what matters.
About the currently situation you can be sure bitcoin has total conditions of recovering and hiting a new ATH at some point futurely, like it has already happened before, while the same can't be told regards fiat currencies which are constantly losing purchasing power within time.
About the currently situation you can be sure bitcoin has total conditions of recovering and hiting a new ATH at some point futurely, like it has already happened before, while the same can't be told regards fiat currencies which are constantly losing purchasing power within time.
The theory is because Bitcoin's supply is fixed, it must go up when fiat goes down. But the reality is not so simple, there are many factors that determine Bitcoin's price, and fixed supply is only one of them. For the last few years Bitcoin demonstrated correlation with stock market and general economy. It wasn't a full 1:1 correlation, but whenever stock market crashed, Bitcoin usually crashed too, but eventually Bitcoin recovered regardless of stock market.
Today's crash is just like that - a short-term panic caused by the stock market. Sooner or later Bitcoin will recover, nothing has changed fundamentally.
Today's crash is just like that - a short-term panic caused by the stock market. Sooner or later Bitcoin will recover, nothing has changed fundamentally.
Bitcoin was in some aspect created to act as a hedge against inflation. More or less it's value was supposed to go up as FIAT value goes down.
Since Bitcoin is a decentralized digital currency designed to give us complete control over our assets, no government regulatory agency or financial institution may regulate or control the Bitcoin price in the same way that they do for FIAT currency.What am I missing here?
or is the best yet to come?
The best is yet to come because many investors have placed their faith in Bitcoin by investing large sums of money in Bitcoin; small investors are also waiting for the best time. I have the impression that the journey has only just begun because Bitcoin has a long way to go before it is accepted globally as a means of exchange.
Bitcoin was in some aspect created to act as a hedge against inflation. More or less it's value was supposed to go up as FIAT value goes down.
Here we are in a state of massive inflation bubble happening right now.
Many of us got Bitcoin years ago as for it to be something that would go up in value and give people better level of wealth, or at least at as a survival key.
However it seems with FIAT going down, so is more of Bitcoin and other cryptos.
Why is this happening?
Bitcoin was supposed to be here for our survival. Now it is becoming just a digital number on a computer screen that never had any value all along.
What am I missing here?
or is the best yet to come?
look to hear your thoughts?
Here we are in a state of massive inflation bubble happening right now.
Many of us got Bitcoin years ago as for it to be something that would go up in value and give people better level of wealth, or at least at as a survival key.
However it seems with FIAT going down, so is more of Bitcoin and other cryptos.
Why is this happening?
Bitcoin was supposed to be here for our survival. Now it is becoming just a digital number on a computer screen that never had any value all along.
What am I missing here?
or is the best yet to come?
look to hear your thoughts?
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