Topic: Does inflation affects bitcoin? (Read 209 times)
The answer we have been experiencing since last year. that is, when high inflation hit almost all countries, see at that time what effect it had on bitcoin. I myself see that high inflation in a country actually makes citizens in that country look for alternatives to save the value of their assets and transfer them to other things. and other things that include bitcoin. when fiat was the most affected. then moving it to bitcoin is good enough. So indirectly Inflation does have an impact on bitcoin. either positive or negative. Even when the market sentiment heard the announcement that the inflation rate in America was decreasing, we can see that the bitcoin price had strengthened.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Inflation affects every asset and everybody. When the price of a loaf of bread rises, your food costs rise. When you pay more for your food, you will have less money to invest. If you have less money to invest, you buy less bitcoins. If you buy less bitcoins, bitcoin's price goes down. You can replace bitcoin with any other financial asset.
The only way to break this chain is getting a raise from your employer but let's be honest now... Not everybody can do that. Most people will just accept their loss to the inflation and won't try to get a raise or find a different job.
That's because a low paying job is better than having no job and the employers know that very fucking well.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Last time we had a huge inflation (pandemic period) the price went up. Because governments printed money out of nothing and that meant that money would have a lesser value, what you could buy with X amount wasn't the same anymore. This means that inflation does impact bitcoin, but of course inflation also has a respond to it, which is recession with high interest rates, which also drops bitcoin as well.Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Most things that makes bitcoin go up, also makes stocks go up, and same for when both of them goes down. Which means that you can check what makes stocks go up or down, and since that has been around for decades that means you could do so a lot easier.
In general, the impact that occurs on the bitcoin market during inflation is almost the same as what happens to other investment assets, but bitcoin is a different case compared to other assets because it is not controlled by the government and anyone at all.
Are you sure bitcoin is another asset, not controlled by anyone? Bitcoin market is a speculative market manipulated by people with money. What is happening in the market depends not on supply and demand but on the manipulation of the tycoons, even if ordered by the government themselves. Don't be too naive, this is a money laundering market, nothing more, nothing less.
Yes, inflation can affect the value of Bitcoin in a number of ways.
Firstly, inflation can reduce the purchasing power of fiat currencies, making people more likely to invest in alternative assets like Bitcoin. As the supply of fiat currencies increases, their value tends to decrease relative to other assets, including Bitcoin.
Secondly, inflation can increase the supply of Bitcoin. Bitcoin has a fixed supply of 21 million coins, but new coins are created as part of the mining process. Inflation reduces the value of each individual Bitcoin by diluting the supply.
Finally, inflation can impact the overall economy, which can in turn affect the demand for Bitcoin. High inflation rates can cause economic instability and uncertainty, which can drive investors towards alternative assets like Bitcoin as a store of value. Conversely, low inflation rates can indicate a stable economy, which may reduce the demand for alternative assets like Bitcoin.
Firstly, inflation can reduce the purchasing power of fiat currencies, making people more likely to invest in alternative assets like Bitcoin. As the supply of fiat currencies increases, their value tends to decrease relative to other assets, including Bitcoin.
Secondly, inflation can increase the supply of Bitcoin. Bitcoin has a fixed supply of 21 million coins, but new coins are created as part of the mining process. Inflation reduces the value of each individual Bitcoin by diluting the supply.
Finally, inflation can impact the overall economy, which can in turn affect the demand for Bitcoin. High inflation rates can cause economic instability and uncertainty, which can drive investors towards alternative assets like Bitcoin as a store of value. Conversely, low inflation rates can indicate a stable economy, which may reduce the demand for alternative assets like Bitcoin.
I don't see the connection between having high price goods and consumables with bitcoin's price. Bitcoin is a deflationary asset and the more the price of these goods is being ticked in by inflation then that means that bitcoin's going to be higher than theirs.
The higher the price of everything goes the lower the value of fiat will be, so if you want to buy bitcoin now you have to pay higher price against US dollars. Not everyone here is from USA so the exchange rate of USD is taking a part here. And the same goes for bitcoin, it has got only one way in the future and that's to go up based on factors that we know like inflation, halving, mass adoption and other more.
I since I was in my home country and things in terms of inflation and how it is now bitcoin can also save many people from the precarious situation of many and if everyone reads this thread I'm sure they will to change opinions about bitcoin, it is very difficult to change consciences, but I know that whoever has bitcoin will never suffer the ravages of inflation, whoever has bitcoin will be king. Those who are anti-bitcoin say that it can drop a lot in price and that can bring losses, but if it goes up? Where are they going to take the profits? I'm sure beyond the clouds.
Inflation has an impact on all aspects of the economy and finance, including bitcoin. Interest in buying bitcoin during inflation depends on how financially strong you are where when you don't have a good job with adequate income, it will be difficult for you to save for investment. While on the other hand, inflation has allowed them and companies to make bitcoin a good store of value asset instead of fiat, that is because fiat continues to lose value during inflation.
In general, the impact that occurs on the bitcoin market during inflation is almost the same as what happens to other investment assets, but bitcoin is a different case compared to other assets because it is not controlled by the government and anyone at all.
In general, the impact that occurs on the bitcoin market during inflation is almost the same as what happens to other investment assets, but bitcoin is a different case compared to other assets because it is not controlled by the government and anyone at all.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Actually there are lots of factor that affect the price of Bitcoin Inflation is not the only one that affects the Bitcoin market. More or less it is the adoption that dictates the price of Bitcoin. Since there are several factors, the effect of inflation can be countered by other factors. So I think inflation even as one of the factor that affects Bitcoin, there are other factors that give more impact on Bitcoin market.
legendary
Activity: 2422
Merit: 1083
Leading Crypto Sports Betting & Casino Platform
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
you should under the law which states that the more something is scarce, the more it is valued, so when we have too much cash in circulation, it causes the value of the money to drop and this is when the price of things goes up, so to make it more simple, we can say that high inflation is what gives birth to high cost of things, not the other way round.
Quote
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Normally, high inflation is supposed to affect bitcoin positively, since high inflation will drive people to put their money in bitcoin so as to preserve its value and possibly increase the value later on, but the problem is this, this opportunity seems to be only available to the rich and maybe some middle class persons, those that are poor will have to live with whatever they have and can get, since they can not afford the means of investing in bitcoin.
Yes, inflation can affect Bitcoin. Inflation refers to an increase in the general price level of an economy and is usually associated with an increase in the money supply. Therefore, high inflation rates can cause currencies to depreciate in value and increase the prices of goods and services.
As Bitcoin is a decentralized digital asset, it is not controlled by any central government or financial institution and its money supply is limited. Bitcoin can therefore provide a hedge against inflation.
However, in countries where price levels are high, people may have less capital to invest in Bitcoin, which could affect demand in the Bitcoin market.
In short, anything that affects human life can affect the price of bitcoin, because even though bitcoin appears to be a decentralized currency, the center of bitcoin is all the people who use it and their capital.
As Bitcoin is a decentralized digital asset, it is not controlled by any central government or financial institution and its money supply is limited. Bitcoin can therefore provide a hedge against inflation.
However, in countries where price levels are high, people may have less capital to invest in Bitcoin, which could affect demand in the Bitcoin market.
In short, anything that affects human life can affect the price of bitcoin, because even though bitcoin appears to be a decentralized currency, the center of bitcoin is all the people who use it and their capital.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Inflation can definitely have an impact on the price of Bitcoin, as it affects the purchasing power of people's fiat currency. When inflation is high, people may be less willing to hold onto their fiat currency and may seek alternative stores of value such as Bitcoin. However, this is just one of many factors that can influence the price of Bitcoin, and it's important to consider other factors as well, such as market demand, adoption, and regulatory developments.Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Ultimately, Bitcoin's value is determined by supply and demand in the market, and it is constantly evolving as the technology and ecosystem mature. It will be interesting to see how the relationship between inflation and Bitcoin develops over time as more countries adopt cashless policies and as the use cases for Bitcoin continue to expand.
So far we have seen how the price of bitcoin fell when the FED plan announced an increase in interest rates when inflation occurred, from that we can actually conclude that bitcoin is still very influential on inflation and I think many of us are aware that there is actually an attachment between fiat currency and bitcoin is still very large, besides inflation, so far there have been many things that have really influenced the price of bitcoin, but the most important thing is, of course, the supply and demand factors that form the basis of bitcoin price movements in the market.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
It is said that bitcoin is not affected by inflation, that infact bitcoin was created to hedge inflation. In some aspects the theory is correct but in some aspects the theory is faulty. This is because money used in investing into bitcoin is not from vacuum. When the economy is bleeding, people will no longer invest in bitcoin and people who already invested will start making withdrawals to sustain themselves in the harsh period, from there bitcoin will respond to the inflation. Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
It is said that bitcoin is not affected by inflation, that infact bitcoin was created to hedge inflation. In some aspects the theory is correct but in some aspects the theory is faulty. This is because money used in investing into bitcoin is not from vacuum. When the economy is bleeding, people will no longer invest in bitcoin and people who already invested will start making withdrawals to sustain themselves in the harsh period, from there bitcoin will respond to the inflation. Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?
The traditional markets have got related with the cryptocurrency Market. This makes both the markets to have mutual dependence and for that reason I'm sure inflation will have its impact over the bitcoin. Based on the feature bitcoin holds it is supposed to function against the inflation. In reality the usage varies and the same makes it coexist and impacted.
Indirectly, yes. Inflation would be felt across countries which would affect how an individual will mke use of his or her funds. If an average employee would suffer from the increase with the daily expenses to live, then how come would he still be able to engage with investments? Therefore demand would be low perhaps in this industry as an example of investment. Why would it be that bad? Most of the people across the globe especially on third world countries are minimum wage earners which makes them the first ones to be affected by any economic problem. This is how I view the situation as having an indirect effect in this industry. Lower demand simply means lower market value.
I don't see the connection between having high price goods and consumables with bitcoin's price. Bitcoin is a deflationary asset and the more the price of these goods is being ticked in by inflation then that means that bitcoin's going to be higher than theirs.
The higher the price of everything goes the lower the value of fiat will be, so if you want to buy bitcoin now you have to pay higher price against US dollars. Not everyone here is from USA so the exchange rate of USD is taking a part here. And the same goes for bitcoin, it has got only one way in the future and that's to go up based on factors that we know like inflation, halving, mass adoption and other more.
Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.
Inflation globally makes everything become more expensive but it is not what we want. If our salary won't increase at a same or higher rate than inflation rate, we are losers.Quote
Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?
The global inflation and recession will give people more reasons to plan their lives better financially. For people who have good income and savings in banks or stocks, they will find other assets to get better ROI for their investments. Stocks were boosted a lot by QEs from many big countries but they started to burst recent months.When millionaires and billionaires look for other opportunities, they would like to find more risky assets like Bitcoin and cryptocurrencies. They will feel more impressive and convincing that since 2009, Bitcoin is a safest asset and best one for investment. Millionaires and billionaires don't bet with their big capitals without DYOR exercises so after they did such and felt impressive, they will spend big capital into this.
ROI charts for 5 years and 10 years don't lie us.
https://casebitcoin.com/charts#roi_chart
I believe in next 10 years, very huge capital flow will be poured into blockchain, Bitcoin and cryptocurrencies.
According to fideily Investment, the inflation have an effect to bitcoin
"As inflation rises, the U.S. Federal Reserve (the Fed) and other major central banks may be inclined to continue to raise interest rates or tighten monetary policies to slow the price rises. As a result, many asset classes, including cryptocurrencies, may see their prices fall." - https://www.fidelity.ca/en/investor/investorinsights/digital-assets/what-rising-inflation-means-for-bitcoin/
In short term And also I notice it when I do trade maybe some member here will notice it too when the FED tend to increase the interest rate the market will shake and crypto market usually fall down and it happen not just to crypto market but also to other investment instruments.
In long term you can notice that price of bitcoin it against the inflation the US dollar lose its value over time but the bitcoin like gold that increase the price over time
"As inflation rises, the U.S. Federal Reserve (the Fed) and other major central banks may be inclined to continue to raise interest rates or tighten monetary policies to slow the price rises. As a result, many asset classes, including cryptocurrencies, may see their prices fall." - https://www.fidelity.ca/en/investor/investorinsights/digital-assets/what-rising-inflation-means-for-bitcoin/
In short term And also I notice it when I do trade maybe some member here will notice it too when the FED tend to increase the interest rate the market will shake and crypto market usually fall down and it happen not just to crypto market but also to other investment instruments.
In long term you can notice that price of bitcoin it against the inflation the US dollar lose its value over time but the bitcoin like gold that increase the price over time
With what happens in 2022, it can be seen that speculative assets are all affected by inflation, and bitcoin is no exception. It can be said that in the short term, bitcoin is still affected by inflation, but in the long term, I think inflation does not affect bitcoin. If you hold bitcoin from 2014 or 2017 to the present, even though the value of bitcoin has dropped 80% since ATH, it is still at a high growth compared to the price from 2014 or 2017. That shows bitcoin has beaten inflation in the long run. If you invest in bitcoin now, it will not save you from ongoing inflation, but it will certainly help you avoid another round of inflation in the future.
Jump to: