Inflation is here Why is not Bitcoin Saving Us?

Darker45

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Quote from: Gyfts on March 11, 2022, 07:46:19 PM

Quote from: Darker45 on March 08, 2022, 10:08:21 PM

~snip~

Bitcoin doesn't necessarily have to increase in price for it to counteract inflation. In any individual's financial repository, as long as they have an asset that doesn't, by design, lose 2 percent annually, their purchasing power can be maintained. It used to be gold that was tucked away, now it's crypto. With currency inflation, the purchasing power is guaranteed to decrease, but with Bitcoin that isn't a factor. Bitcoin is the solution and it doesn't necessarily take a price increase in order to appreciate the decentralization component. We might be living in a fiat world, but with the inflation rate for most currencies, not for long.

That is true, that Bitcoin is somehow designed to counter inflation. However, the bottom line of inflation is that the prices of goods and services are increasing. That the value of fiat is decreasing more or less 2% annually doesn't speak much about anything outside the rising prices. So Bitcoin not rising in price will not be able to counter inflation. It will still suffer from the effects of inflation.

This is primarily because right now, whether we like it or not, Bitcoin is not independent from fiat, or from the fiat economy in general. As a matter of fact, Bitcoin's price is in fiat. We do not provide goods and services prices in Bitcoin. We only convert their fiat prices to Bitcoin such that whenever their prices increase in fiat, and Bitcoin's price doesn't increase, their prices will also increase in Bitcoin.

Gyfts

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Quote from: Darker45 on March 08, 2022, 10:08:21 PM

The case of inflation has always been present ever since the current fiat system is in place. But, is Bitcoin really the supposed solution to inflation? I don't think so. While Bitcoin's fixed supply is obviously a design which particularly protects the people from the continuous debasement of money due to abuse or indiscriminate printing and injection of new supply to the circulation, it was never a guarantee that the price value of Bitcoin will always move upward. After all, Bitcoin's price is solely determined by the market.

Also, you cannot expect Bitcoin to address the current problem of a different system just as you cannot expect the mechanic to address the problems faced by physicians. Are we a Bitcoin economy? No. Is our existing economic paradigm parallel to that of Bitcoin's standard? No. Are the world's population, companies, governments, and others living according to the principles of Bitcoin? No. We are living in a fiat world, so why are we surprised if we are facing fiat problems?

Bitcoin doesn't necessarily have to increase in price for it to counteract inflation. In any individual's financial repository, as long as they have an asset that doesn't, by design, lose 2 percent annually, their purchasing power can be maintained. It used to be gold that was tucked away, now it's crypto. With currency inflation, the purchasing power is guaranteed to decrease, but with Bitcoin that isn't a factor. Bitcoin is the solution and it doesn't necessarily take a price increase in order to appreciate the decentralization component. We might be living in a fiat world, but with the inflation rate for most currencies, not for long.

martha1

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

As the previous weeks have showed us bitcoin is still not yet recognised as an asset equal to gold yet , when war broke out we saw a huge increase in commodities like gold and oil followed by a blood bath on the crypto market (btc took a fairly easy hit but still).

24Kt

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Quote from: jossiel on March 11, 2022, 06:41:25 PM

It has saved me from many financial problems, I don't know about you. But to say that it's going to be the solution for all, I don't think that's possible. Bitcoin alone cannot save an entire problems of each individual.

What we have to do is to keep on investing and holding it. I'm still doing my routine and I have no complains about it. If people just look at the current ride, you'll not appreciate how far bitcoin has gone by now.

I can agree with that. It is not the responsibility of bitcoin to save us anyway. It is your own strategy how to take advantage of the opportunity and use your knowledge of crypto to optimize its features. It doesn't say that when you are holding bitcoin, you are exempted from inflation or other financial setbacks. It is still your own action how to make use of this knowledge to your advantage.

jossiel

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It has saved me from many financial problems, I don't know about you. But to say that it's going to be the solution for all, I don't think that's possible. Bitcoin alone cannot save an entire problems of each individual.

What we have to do is to keep on investing and holding it. I'm still doing my routine and I have no complains about it. If people just look at the current ride, you'll not appreciate how far bitcoin has gone by now.

FanEagle

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Quote from: ropyu1978 on March 11, 2022, 03:41:16 AM

Quote from: PX-Z on March 08, 2022, 07:59:21 PM

Well, as what you and others are expecting, it's the opposite, bitcoin still affected of the current world market especially in dollar and oil, even though it is said to be inflation-proof. Although having bitcoin in long term will show how its said as against the inflation.

Indeed for now bitcoin has not been able to save us from inflation, but we must realize bitcoin is still in the development stage, and it still takes time for bitcoin to overcome all these problems, but now many Russian investors have turned to crypto, because of sanctions problems from various countries .

It is not in its development stage. The reason why it didn't "save" us is the fact that it moved from 6k in march 2020 to 40k right now, that is around 7 times higher, if people think that it is not saved, then I do not know what they are expecting from crypto.

Even higher than what we should have been because we had a huge hyped period. All in all Russians did helped the price to stay afloat a bit higher and doing fine right now. But, that should not be the reason why bitcoin is looking great right now, we should realize that it is not doing as well as you might imagine, but that doesn't change the fact that it has done amazingly so far.

leea-1334

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First of all, as everyone says, Bitcoin was never touted as such. Only people like Robert Kiyosaki would say stuff like that (but they always change their mind later).

Then,,, you need to look up history of crypto projects that actually claimed to save from inflation and realize that there are more dead than alive today. So many launched, so many claimed the same,,, and where are they now? Dead because zero utility.

Finally,,, inflation is a risk and a failure of mechanism. Gold buys more tomorrow than what it buys yesterday. The same as Bitcoin. They are not immune to inflation but over longterm they always are inflation proof.

fzkto

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Because bitcoin is very volatile and you can't save yourself from inflation here and now. Bitcoin is a long-term investment, and if you had bought it a few years ago, your money would be inflation-free now. I am more than sure that if you buy bitcoin right now, in three or four years the outcome will be the same. So if you think about the future, you should have bitcoin.

D ltr

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what do you want from bitcoin, inflation affects all sectors I think, and bitcoin is also affected by the exchange rate of $ and oil, anyway btc can not be used as collateral to help inflation I think, if you expect bitcoin to always go up I think it is impossible to be granted because bitcoin has a cycle, it doesn't always go up and fly
So if you want to invest stable and inflation-free try gold bullion, which is real and has little loss

worldtraveller321

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Yes it is very true that Bitcoin and even precious metals will not totally protect you against inflation.

Yes right now. Many people who are very "pay cheque to pay cheque" will be forced to sell off various crypto and any other investments in order to live.

Even some are in the situation of selling at a lower price then they bought into the market.

It is just how it is. No other way around it.

When it comes down to means of survival one will resort to many things and do what it takes.

Even if we had Bitcoin or Gold as the standard of many currency/money. The situation would be the same. People sell things when they need to survive. Simple math.

some people will have more resources/money then others/. It has always been that one.

The truth is, you will always have people falling through the cracks of poverty and other people will succeed and be just fine. You will always have people with lots of resources who are quite wealthy.

Always been that way since the beginning of time. No way around it. I doubt it would ever change.

ropyu1978

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Quote from: PX-Z on March 08, 2022, 07:59:21 PM

Well, as what you and others are expecting, it's the opposite, bitcoin still affected of the current world market especially in dollar and oil, even though it is said to be inflation-proof. Although having bitcoin in long term will show how its said as against the inflation.

Indeed for now bitcoin has not been able to save us from inflation, but we must realize bitcoin is still in the development stage, and it still takes time for bitcoin to overcome all these problems, but now many Russian investors have turned to crypto, because of sanctions problems from various countries .

LegendaryK

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

Food , Gas, housing, energy basically everything is increasing in price.

So people that own bitcoins or altcoins , are selling to help cover the difference and not able to buy more crypto, because of less spare fiat money.

Odd that inflation is actually causing all crypto to decrease, but that is happening, and it may be the beginning of one of the worst crypto winters on record.

When it comes down to it, do you need to buy/hold bitcoin or feed the family.
Feed the family will always win if the person is sane.

doomloop

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Quote from: kryptqnick on March 10, 2022, 09:08:34 AM

The level of inflation right now depends heavily on where you are and which fiat you're talking about. If it's very solid fiat like the USD, EUR and similar currencies, the inflation rate is at 6-8% from what I've seen. So it's above the 5% target, but not by much, and it's not a devastating increase by any means. So in that case there's very little sense in turning to Bitcoin to save the wealth because not much of it will be lost due to inflation and because Bitcoin can easily fall lower than this inflation rate. Then we have Russia, with restrictions of having USD and EUR, and ruble lost almost half of its value over a short period of time, and, by the way, Russian bank cards don't work in most countries anymore as well. In that case, Bitcoin might be the best savior from inflation because the risk of Bitcoin fluctuating downward is way lower that the almost certainty of being left with almost nothing if your savings are in ruble (and the majority of Russians keep savings in ruble).

I would guess that it also depends on the items and the job you are on. So if you are in trucking business (which has been already in trouble because of covid, and also truckers denying to work because of vax mandate) and the oil prices are higher, then you will be impacted harder. Even in the nations like USA or in Europe. However, if you are working in making burgers, that may not be impacted a lot, or selling tv's? Maybe not impacted a lot.

We have to remember that 5-10% inflation means some stuff went high a lot, like oil did, or healthcare did, but some things did not move too much at all. Sure on nations with 50%+ inflation, everything went up. But, 5-10% ones had one thing going up while the other one not so much.

pawanjain

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

It just doesn't work that way. Of course you can hold bitcoin to fight against inflation and grow your wealth but not everyday is rainbow and sunshines.
Right now it's time to buy more coins and fill our bags so that we don't weep when the price are near an ATH.
We are having the opportunity to buy at lower prices right now. Making use of it while we can is the right approach to be followed.
We are still fighting against inflation by buying more during the dips. But if you just think about profits all the time then you are just speculating over growing your money.
While that's not a bad thing but blaming bitcoin right now for that it's just a stupid thing to do.

fiulpro

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What do you mean ?
How is bitcoin not saving you from the inflation? How exactly? The price prediction of Bitcoin is still strong and at the same time it have exceeded its value as a whole, even in 2022, the price rose when the war began, considering the whole month, we have seen some ups and downs but at the same time, it's getting recognized around the world.
Russians and ukranians are both using bitcoins to tackle the situation right now. Inflation does not mean that bitcoins will protect us by not increasing in price! It does mean that it would continue to increase in value and maintain it overtime connecting the world around, helping people take international jobs as well so that they have an option away from the governmental controlled fiat and jobs.

Lucius

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

You created a profile almost 5 years ago on the forum and still haven't figured out how Bitcoin could protect you from inflation? At the beginning of 2017 1 BTC was worth barely $1000, today it is worth almost 40 times more, and last year it was worth almost 70 times more. I could bet that in 5 years you will ask the same question when the price of 1 BTC is 5 or 10 times higher than today, but this is a problem you have to solve with yourself.

Seen from my perspective (and that of many other people) the thing works perfectly, of course if we look at it in the long run. Be on the side of the winners who invest in times when the markets are in the red, not those who do it in the middle of a bull run.

ChiBitCTy

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

You say no one is doing anything about inflation but that’s just not true. I’m not entirely sure how countries besides the United States handle combating inflation but that US Federal Reserve buys and sells securities to try and help inflation as well as highering and lowering interest rates. So there are people trying to do something about it.

kryptqnick

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

The level of inflation right now depends heavily on where you are and which fiat you're talking about. If it's very solid fiat like the USD, EUR and similar currencies, the inflation rate is at 6-8% from what I've seen. So it's above the 5% target, but not by much, and it's not a devastating increase by any means. So in that case there's very little sense in turning to Bitcoin to save the wealth because not much of it will be lost due to inflation and because Bitcoin can easily fall lower than this inflation rate. Then we have Russia, with restrictions of having USD and EUR, and ruble lost almost half of its value over a short period of time, and, by the way, Russian bank cards don't work in most countries anymore as well. In that case, Bitcoin might be the best savior from inflation because the risk of Bitcoin fluctuating downward is way lower that the almost certainty of being left with almost nothing if your savings are in ruble (and the majority of Russians keep savings in ruble).

tygeade

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Quote from: dothebeats on March 09, 2022, 05:19:51 AM

It was never meant to save and rid the world of its problems. It was meant to safekeep your assets while the rest of the world goes to shit. It's doing just that currently, and it's holding on albeit the pressure from the world economy going to shit. That's the only thing that bitcoin can do, and the rest of the problem should be solved by world leaders coming to an agreement on how they should fix the economy. It might solve individual people's problems, but not the world as a whole.

I don’t get why some people use the word savior of the world for Bitcoin. That seems quite dumb to me, because that isn’t really what Bitcoin is all about. First of all Bitcoin is meant for making transactions, and the main purpose for creating it was just to have another type of currency that wouldn’t be controlled by the government, and would just be on its own, so that people can have privacy and as well have the freedom to do whatever they want to do with their assets or money.

As we may have it, Bitcoin happens to be also an asset that has a limited supply and keeps gaining value overtime. So the only way that it can save you is that you are investing now and having patience to benefit from it in the future. But if your plans are that it is going to help you right now, then you’re just lying to yourself.

lienfaye

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Quote from: worldtraveller321 on March 08, 2022, 07:39:02 PM

How come Bitcoin has not come to save us yet.?

Why blame Bitcoin?
Dont rely alone on it. Often, things wont go the way you expected it to be thus you must have a plan B incase something went wrong. Its a good choice if you invest in Bitcoin but dont be impatient. Inflation is already there so do something to help yourself like getting more than one job.

Topic: Inflation is here Why is not Bitcoin Saving Us? (Read 397 times)