Topic: Bitcoin vs Eurozone inflation (Read 98 times)

There are some inevitable part of an economy, inflation is one of them. People may not like inflation but it is very helpful during economy crisis. People talked about United States money printing and later the inflation rate in United States that grew up to or more than 7.5%. All countries with good or poor economic standard all face inflation but just that it can be severe in countries with poor economy.

The Covid-19 negative impact on economy caused inflation all over the world, the recent war between Russia and Ukraine can cause Euro declination because EU have strong economy ties with Russia. From the second image below, we can compare inflation in EU countries with bitcoin, this is a year and some months graph comparing the two, if more years from the past are included, we should know how bitcoin is a hedge against government issued currencies.



https://cointelegraph.com/news/inflation-spikes-in-europe-what-do-bitcoiners-politicians-and-financial-experts-think

For local currencies issue by governments to be declined in value during economic crises is good to the economy but there are alternatives to smart people that can buy some assets like gold and bitcoin as a hedge for their welth not to decline.


Bitcoin, the first true form of digital money
Originally, money have value that does get more value as people are demanding more for it which makes it to be more scarce until certain time now in history when government issued local currencies become reality, government create the money and decrease the value of the money in a way their country will not enter economy crises or as a means to come out of crises. But bitcoin later came and have the property of old money which value increase because of scarcity, bitcoin has very limited supply and more people are demanding for bitcoin.

You can hold bitcoin for long which can be an inflational hedge.