Inflation is the main cause of financial depression

avikz

legendary

Activity: 3080

Merit: 1500

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

You need a little more financial education before talking about inflation. Blockchain or crypto currency has nothing to do with controlling inflation.

First try to understand what is inflation and what is recession and then come back to this discussion. Attaching blockchain to government-created currency could potentially offer benefits like increased transparency and security. That's all! It can't control inflation, neither it can prevent recession.

Satoshi can become expensive without governments using blockchain system. But we won't be around to see that!

Questat

hero member

Activity: 2982

Merit: 610

Cryptocurrency or Bitcoin has nothing to do with inflation, it won't stop but the government can help, IF they are not corrupt as we usually see.
Think that the inflation rate is increasing almost every year and we feel that situation even we have stable jobs, I feel worry those who don't have any. Good leadership creates a potential increase of GDP in the country but a corrupt one will worsen the situation and increase the inflation rate. Every country is facing this situation because most of the government leaders are greedy.
Too many factors to consider, It was not the financial depression.

eightdots

hero member

Activity: 994

Merit: 772

Quote from: adaseb on April 17, 2024, 12:23:36 AM

Yeah the central banks are doing their best to fight inflation and its still not working. Today the Canada Bank released the CPI numbers at 0.6% from last month and the Fed released their numbers last week at 0.4%. They say its season inflation and it will go away. Just like they said it was transitory, they were lying then also.

You go shopping and not only do you pay more for the same goods but you also get less of them. Same package but the content inside is smaller. Great way to fool people. No idea how this will end. At these rates we will never reach the 2% goal. Its been 4 years since Covid happened and this aftermath of covid will most likely last a decade.

Paying more for the same product and seeing it shrink is proof that consumers are being cheated. Governments that cannot cope with inflation waste time with different scenarios and use their resources unnecessarily. There are times when the figures given by governments in the fight against inflation do not reflect reality.

In some countries, the product prices used to calculate inflation are far from reality, so there is a difference between the inflation rate given and the actual inflation rate. This shows that the current situation is not good.

nara1892

hero member

Activity: 1792

Merit: 728

Quote from: MiF on April 16, 2024, 11:34:17 PM

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

I think you are right inflation is the main cause of financial depression, but not only inflation there are a lot of causes for financial depression and the most affected is the poor, or the people who are in the middle status, rich is not so affected with the inflation they have a lot of money and the most depress is the poor people who doesn't have a good work with good salary they are fighting inflation everyday i don't know what the government can do with this problem i hope 10 years from now this problem will be gone.

Inflation is the problem of everyone who lives, everyone has felt and experienced how difficult it is to survive when being affected by inflation where all the basic goods for the necessities of life soar even double, and of course those who feel the impact the most are those who have a financial situation below average or poor people who have little income, as I said above this is everyone's problem, poor or rich but it is the poor who will feel the difficulty more. Actually we cannot solve the problem of inflation because this is the business of the government who knows better how to deal with it and we as a society may only be able to find ideas or solutions for ourselves or the intention is to minimize the difficulties in meeting basic needs. Basically there will always be a way out or just to minimize the impact and for me usually I myself save more expenses by utilizing whatever can be utilized such as in terms of food needs, buying something very cheap but worthy of consumption, or planting vegetables around the house for consumption with the aim of saving expenses.

Alone055

sr. member

Activity: 1260

Merit: 358

I don't see any reason why it would help reduce inflation if Bitcoin or other cryptocurrencies were used to back fiat currencies and if you are saying this because you think cryptocurrencies grow in value over time and that will help the fiat currencies then you also need to understand that when it comes to cryptocurrencies, it's not a one-way street as their values might go up but their values might go down as well which can then become a bigger problem as the rate of inflation will increase because of it based on your observation.

Besides, I don't think that governments would ever be ready to accept such a change because that would probably make them lose control over their currencies and the finances of their people because cryptocurrencies can only back their currencies up if they make them legal and accepted and if that happens, people might show more interest in cryptocurrencies than fiat currencies and they (the governments) wouldn't be able to digest this fact.

Cookdata

hero member

Activity: 1106

Merit: 912

Not Your Keys, Not Your Bitcoin

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

So much is happening behind government closed door policy, they don't want the people to see what is happening, they called it "confidential information" but it's under that they disguise and steal money meant for public, that's where they do their moves without the public intentions, if indeed they actually make use of blockchain for currency transparency, a lot of revolution will keep happening because there is a lot going on under government umbrellas.

Inflation is mathematics and if theoretical analysis points where the problems comes from and gives solutions, the it should definitely work but because they don't do what they are supposed to do, that's why inflation go beyond what they can't control. For instance, printing of currency out of tin air will do more harm to the economy but you think they do listen to all this warning? They don't.

AnonBitCoiner

sr. member

Activity: 1456

Merit: 326

Eloncoin.org - Mars, here we come!

Quote from: kotajikikox on April 16, 2024, 06:17:29 AM

Bitcoin can never help the inflation in a country as a whole however it can help each citizen to become more wealthier therefore pushing economic growth by increasing purchasing capacity. Bitcoin will be basically the pushing force for an economy to grow and prosper. I do hope too that someday I will benefit much more from bitcoin.

Exactly we cannot reduce inflation with the help of Bitcoin investment but if every individual invests in Bitcoin then they can manage their expenses, make their future amazing and can tolerate the condition of inflation as they can take advantage of Bitcoin during inflation.

Bitcoin price is highly changeable so due to such quality of Bitcoin we can make profit from Bitcoin investment by buying low and selling high. Some people are afraid of Bitcoin investment but if they realize the actual benefit then they will regret missing the past years in which they have not made investment.

iBaba

sr. member

Activity: 616

Merit: 291

Bitcoin in Niger State💯

Quote from: Oshosondy on April 16, 2024, 06:20:55 AM

Inflation is one of the cause of financial depression but it is just one of the cause. Also a country with good economy will have people with financial depression. Everybody can not be rich and you can not know what everyone on earth are going through emotionally.

Did you read about the happiest countries in the world and the most depressed countries in the world. UK is in number 2 of the most depressed country but the inflation in the UK is far less than some countries in the happiest country in the world.

Also know that bitcoin can not solve inflation, financial depression and depression generally. Not everyone can also afford bitcoin. Some people will buy it but not much in a way that can make them to be come very rich.

When inflation is introduced into a country, it goes on to ignite economic growth issues and general life depressions. It goes to change the way people are living and their financial decisions. For someone who has lived in a country that has suffered inflation recently, I will characterise it as terrible because the most tricky part of it is, you can't help the situation but to adapt in such harsh economic conditions.

When inflation sets it, prices of commodities begin to skyrocket including other trade market items like building materials and so on which makes an average cost of living more expensive, yet your financial muscles remain the same when the value of your currency depreciates.

For instance, you have a 9-5 job that's paying you $500 dollars monthly and you take your monthly expenses from there (including your accommodations, feeding, transportation, etc) to the tune of 300 dollars then left with 200 dollars for savings. When there's inflation, the cost of your expenses can rise by 100% or more whereas you will still be paid the same $500 dollars monthly but you may end up running to debts to be able to sustain yourself after buying the same commodities for your upkeep.

adaseb

legendary

Activity: 3808

Merit: 1723

Yeah the central banks are doing their best to fight inflation and its still not working. Today the Canada Bank released the CPI numbers at 0.6% from last month and the Fed released their numbers last week at 0.4%. They say its season inflation and it will go away. Just like they said it was transitory, they were lying then also.

You go shopping and not only do you pay more for the same goods but you also get less of them. Same package but the content inside is smaller. Great way to fool people. No idea how this will end. At these rates we will never reach the 2% goal. Its been 4 years since Covid happened and this aftermath of covid will most likely last a decade.

MiF

sr. member

Activity: 1442

Merit: 258

Reward: 10M Shen (Approx. 5000 BNB) Bounty

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

I think you are right inflation is the main cause of financial depression, but not only inflation there are a lot of causes for financial depression and the most affected is the poor, or the people who are in the middle status, rich is not so affected with the inflation they have a lot of money and the most depress is the poor people who doesn't have a good work with good salary they are fighting inflation everyday i don't know what the government can do with this problem i hope 10 years from now this problem will be gone.

Darker45

legendary

Activity: 2576

Merit: 1860

I'm afraid it isn't as simple as that. I don't even think it is right to generalize that financial recession is caused by financial inflation. That's oversimplifying recession, which is actually multi-faceted.

If that's your premise, then we should be facing recession all the day of lives. After all, inflation is happening all the time. It has always been an integral part of the current economic system. The prices of goods and services have always been increasing no end. The supply of money as well.

Here's a thought to ponder: since recession basically follows a "decline in economic activity," will a Bitcoin-based economy not experience the same if the price of Bitcoin continues to skyrocket? Will recession be a natural consequence when everybody's hodling rather than spending?

Jegileman

sr. member

Activity: 532

Merit: 250

Quote from: kotajikikox on April 16, 2024, 06:17:29 AM

Bitcoin can never help the inflation in a country as a whole however it can help each citizen to become more wealthier therefore pushing economic growth by increasing purchasing capacity. Bitcoin will be basically the pushing force for an economy to grow and prosper. I do hope too that someday I will benefit much more from bitcoin.

Don’t you think that as people get wealthier through bitcoin and become financially stable, the inflation of the country might have reduced but things will becomes more expensive to adjust to the living of citizens in the country. There’s a reason for anything that happens in the economy, whether it benefits us a group of people only, or even the elites. If all this are not controlled, it will get a point that your wealth cannot be useful to you again because with the so much money you’ve had, you won’t be able ti get what you want.

shield132

hero member

Activity: 2352

Merit: 905

Metawin.com - Truly the best casino ever

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

Blockchain is not magic but this word is often abused to mislead people. First of all, blockchain systems can't be attached to government-created currency, there is a need for developers that will create a new currency with its own blockchain but even if we do that, what's going to stop governments from printing money? They'll just create a cryptocurrency with the ability to mint new coins. Also, if the country doesn't produce anything, then its economy is not going to grow and no blockchain is going to help such currency to escape.

alastantiger

sr. member

Activity: 728

Merit: 444

Inflation today is caused by corporate greed. The CEOs are being greedy and just charging more, and giving less, and pocketing that difference. And that’s what hurts the economy the most. Keeping currency locked up in the rich bank account and not fluid. Corporations are recording record profits, so we know that the money being raised by the higher prices isn’t being passed on down the supply chain. The money raised by higher prices is stopping at the corporations and going into their pocket.

Die_empty

hero member

Activity: 686

Merit: 987

Give all before death

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

Blockchain technology is not the solution to inflation. There are nations that are using central bank digital currency but still experiencing inflation. Reduction in cost of production will be beneficial in reducing inflation. The government also use economic policies like increases in interest rates to reduce the purchasing power of the people.

Quote from: mindrust on April 16, 2024, 01:07:59 PM

Overpopulation is the main reason. (Not enough quality resources, too many demand/people) Inflation is only the symptom of what’s really happening.

Many countries are experiencing massive reductions in population because of low birth rates, yet they are still experiencing inflation. Inflation in some countries with high populations is lower than in some nations with less population. Therefore, overpopulation might not be the main cause of inflation. If demands for resources get the needed supplier accordingly, there might be no inflation. China is an example that population is not the real problem.

stomachgrowls

hero member

Activity: 3010

Merit: 794

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

Not to break your optimistic approach or positivity towards blockchain tech and about Bitcoin but its not something that been created on saving up or would really be that solving those economic problems that we are facing on. It is really just that not right that people would really be having this kind of approach and beliefs that it is really that intended for this kind of sole purpose of its existence. As part of living and part of the reality
that we are living then financial depression and that inflation or whatever economical problems that we are facing is something that inevitable.

Instead on making yourself that that thinking about those things, it would really be better that you should really be doing the solution of your own on which finding up other source
of income and dealing up something that correlates to it on which making out that priority on how to survive on via means into those common investment methods and other methods available.

QuinielaPosible

newbie

Activity: 52

Merit: 0

When faced with high inflation, governments typically prefer to avoid aggressive interest rate hikes that might lead to a recession and job losses. Instead, they often opt for a more cautious approach, hoping to manage inflation without severely impacting economic growth.

This preference tends to preserve purchasing power in the short term, even if it risks higher inflation persisting.

mindrust

legendary

Activity: 3276

Merit: 2442

Overpopulation is the main reason. (Not enough quality resources, too many demand/people) Inflation is only the symptom of what’s really happening.

Here are the choices we have:

High inflation is bad. Let’s increase the interest rates.

a) the economy stops. Recession begins. People lose their jobs and die from hunger.
b) the rate increase wasn’t enough, the inflation goes higher, people keep losing their purchasing power.

When the govs face this situation, almost 99 times out of 100, they prefer choice “b”. They only pick “a” when having a recession benefits their elite team better. (They already went short on the markets)

kentrolla

hero member

Activity: 1652

Merit: 569

Catalog Websites

I don't understand how blockchain can prevent inflation? How are these two even related? I think this statement lacks basic understanding of inflation and we need to understand inflation in certain country is caused when the value of their fiat depriciates as their buying power will be reduced and it's a matter of import and export, blockchain cannot solve much here unless people create a common currency and use it as a conversion for import and export instead of USD.

Frankolala

hero member

Activity: 896

Merit: 586

Leading Crypto Sports Betting & Casino Platform

There is no way blockchain will help to reduce inflation, because inflation is caused by poor economy. The government of a country is the one responsible to tackle inflation, and with all seriousness and commitment to make sure the economy improve, it can be achieved.

The fact is that the government don't care about what happens to the common main on the street but rather they are after enriching themselves, and make the poor become poorer, through taxes and corruption. The blockchain is transparent and no government WI want to use it, because it will expose their evil act.

YOSHIE

legendary

Activity: 2128

Merit: 1775

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

Before you talk about Blockchain, you should first study the function of Blockchain technology for banking.
I will give an example of the advantages of Blockchain for banks.

Quote

Blockchain is a technology that functions as a storage system or digital data bank connected via cryptography. Although first known through Bitcoin and other cryptocurrencies, this technology has broad potential for application in various sectors.

And if banks prioritize blockchain technology.

Quote

The use of blockchain technology can reduce administration and transaction costs by eliminating the need for intermediaries, which can support Islamic banking's goal of minimizing transaction costs.

Conclusion: of blockchain technology.

Quote

In short, blockchain is a technology that is the basis for developments in the field of currency in the form of crypto. Usually exemplified by the most popular forms such as bitcoin, ethereum, and other similar forms of crypto.

Point for you, blockchain is not a currency, blockchain is a system that functions and works as technology.

Likewise with Inflation and Finance, what is the relationship, it seems you have to first understand the meaning of Inflation and Finance.

Quote

Inflation is a process of increasing prices in general and continuously, an increase in the price of one or two goods alone cannot be called inflation unless the increase extends to other goods.

Quote

Finance is a term related to financial management, including financial resources, investment, and overall financial management.

Your topic is difficult to understand, you don't know what you are asking.

DeathAngel

legendary

Activity: 3332

Merit: 1617

#1 VIP Crypto Casino

It’s out of control, it’s a tax on us every single year. If you don’t get a pay raise every year that at least equals annual inflation then it’s a cold hard fact that you are getting poorer every year. Governments & Central Banks don’t care one bit about us. We have to fend for ourselves out here, hence why we have all seeked out this forum

Cryptoprincess101

full member

Activity: 434

Merit: 216

Quote from: Oshosondy on April 16, 2024, 06:20:55 AM

Inflation is one of the cause of financial depression but it is just one of the cause. Also a country with good economy will have people with financial depression. Everybody can not be rich and you can not know what everyone on earth are going through emotionally.

Did you read about the happiest countries in the world and the most depressed countries in the world. UK is in number 2 of the most depressed country but the inflation in the UK is far less than some countries in the happiest country in the world.

Also know that bitcoin can not solve inflation, financial depression and depression generally. Not everyone can also afford bitcoin. Some people will buy it but not much in a way that can make them to be come very rich.

I like this actually, we should know that those that can't afford daily needs will always feel the impact of inflation so the goal should be on employment and bringing in projects that will remove people from abject poverty and long suffering only then can inflation be conquered because no matter the price of things, the rich will always afford it unlike the poor so eradicating poverty can be a step to reduce inflation.

The United Kingdom blossoms in their economy yet some still feels inflation due to the high cost of living and high taxation in the UK so we should be more concerned on things that will generate more income to us then we won't feel inflation that much again

On a normal note, no matter the price of Bitcoin, everyone cannot afford it, so there's no way everything will be fine with every body. In this society we live in, almost every thing goes in the favour of the rich and wealthy people amongst us but no matter the situation you find yourself keep striving for a better future that is why it is advisable to invest in Bitcoin now because it has a solid future.

Apocollapse

hero member

Activity: 1190

Merit: 803

In addition, 2020 should be included in global recession too.

First you need to clarify, it's a currency that use blockchain or Bitcoin?

If it's a currency that use blockchain, it doesn't mean there are no inflation. Blockchain is just a public ledger where people can see the balance, transactions, etc. If the currency is centralized and has unlimited supply, inflation still exist.

I disagree inflation is the main cause of financial depression, it's mainly due to low productivity or corruption.

KingsDen

legendary

Activity: 1316

Merit: 1089

Goodnight, o_e_l_e_o 🌹

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

The power of the blockchain is no longer in doubt, both the government and individuals have known how powerful the blockchain is in connection to decentralization. It is because of this reason that the government have started developing their own coins that is pegged to their fiat and started running it on blockchain as you can see almost every country have their own CBDC. But then do we conclude that government likes decentralization, no! The government wants to use your data and sensor you, they want to detect what you can and what you cannot do. This is the reason the adoption of blockchain would be slowed, the government especially the corrupt ones will not want to run a government whereby their financial status will be in a place as public as a blockchain. With blockchain no government will manipulate their net worth, their security power and more. We will come to the state of blockchain globalization, but it might not happen any moment.

yudi09

hero member

Activity: 1316

Merit: 787

Rollbit - The #1 Solana Casino

The application of the blockchain system to currency issued by the government only makes transactions easier due to management but cannot overcome inflation.
When the circulation of paper money increases, the value of the currency also decreases. Here Bitcoin cannot make things change for the better to save economic conditions.
Bitcoin for everyone in limited quantities. IMO, it's not because of the implementation of the blockchain system on fiat currency that makes Bitcoin expensive.

Oshosondy

legendary

Activity: 1652

Merit: 1208

Gamble responsibly

Inflation is one of the cause of financial depression but it is just one of the cause. Also a country with good economy will have people with financial depression. Everybody can not be rich and you can not know what everyone on earth are going through emotionally.

Did you read about the happiest countries in the world and the most depressed countries in the world. UK is in number 2 of the most depressed country but the inflation in the UK is far less than some countries in the happiest country in the world.

Also know that bitcoin can not solve inflation, financial depression and depression generally. Not everyone can also afford bitcoin. Some people will buy it but not much in a way that can make them to be come very rich.

kotajikikox

full member

Activity: 2590

Merit: 228

Bitcoin can never help the inflation in a country as a whole however it can help each citizen to become more wealthier therefore pushing economic growth by increasing purchasing capacity. Bitcoin will be basically the pushing force for an economy to grow and prosper. I do hope too that someday I will benefit much more from bitcoin.

btc78

full member

Activity: 2520

Merit: 214

Eloncoin.org - Mars, here we come!

Quote from: SAHASAN on April 16, 2024, 05:38:08 AM

If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.

It is possible that if fiat were backed up with a blockchain system then central banks would be able to promote higher economic activity and control the supply. Although I am sure a lot would still prefer the cryptocurrency.

Cryptocurrency are decentralized and have no any authority having control over it. Fiat having blockchain system will cause a disruption to both non-crypto and crypto enthusiasts. For this to happen, there should be a massive change up in terms of traditional finances which is something that is not easy to conduct.

SAHASAN

jr. member

Activity: 119

Merit: 0

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more .........

Topic: Inflation is the main cause of financial depression (Read 282 times)