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Topic: Is Bitcoin anti-inflation? (Read 1107 times)

legendary
Activity: 2590
Merit: 1882
Leading Crypto Sports Betting & Casino Platform
October 02, 2022, 12:00:15 PM
#93
I know there is the term and the word deflationary, which is what something like anti-inflationary means, and obviously BTC is of that nature and totally decentralized, for some countries with high inflation the one that has bitcoin and changes it to local currency is simply a king next to the others this is what bitcoin generates it is even above gold for the simple reason that bitcoin can have a much higher ATH than the previous one we all know it was almost for $70k which was a very good number and that everyone wants to see, but I think the next ATH will be much more inflated, and it will have a great madness when it happens, I think it will break the $100k barrier.

legendary
Activity: 3052
Merit: 1188
September 27, 2022, 10:52:32 AM
#92
People are not realizing that inflation is increasing the price of things, that means inflation. It means that bitcoin would be going up as well, it’s not anti-inflation more so that it is pro-inflation because inflation means the dollar would devalue, and when that happens price of bitcoin would go up as well. Does that mean it’s better to own bitcoin when inflation happens?

Of course it does, but at the same time when government’s fight against inflation they are fighting against bitcoin too (example seen as fed increasing rates), so while you are benefiting from inflation, you are not really gaining anything since the prices go up anyway so your purchasing power doesn't increase, but when they are fighting against it, you are going down yet the prices stay the same.
sr. member
Activity: 1587
Merit: 271
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September 26, 2022, 03:49:35 PM
#91
According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?
It could be that Bitcoin is anti-inflation, because the limited stock makes it more difficult for us to get it. If we look at CMC data, the Bitcoin we can still get for free is less than 2 million coins. If mining around the world is active, I estimate that in less than three years Bitcoin stocks will reach their maximum.
That is, we can only get Bitcoins that have been circulating on the exchange. Of course this condition will make the price of Bitcoin higher. Then who will be the king of Bitcoin under these conditions? He who holds the most Bitcoin at this time will be the king of Bitcoin.
hero member
Activity: 2044
Merit: 784
Leading Crypto Sports Betting & Casino Platform
September 26, 2022, 03:06:40 PM
#90
That is a question only time can tell. Theoretically it's possible bitcoin can be an anti-inflationary currency because we have a limited and fixed supply and the trust its blockchain system is incorruptible. But to make it work properly adopters have to trust bitcoin and go for it increasing demand. Few people aren't enough to make bitcoin anti-inflationary, there must be a high number of individuals involved on this process, acquiring more coins and using it as currency and investment, instead of solely trading. Within time we must see bitcoin getting stronger against inflation, while fiat goes on the opposite route.
member
Activity: 96
Merit: 10
September 26, 2022, 04:30:37 AM
#89
Apart from the fact that inflation has already happened and Bitcoin has ""benefited"" from central and commercial bank money printing in recent years, not everyone invests in BTC for the same reason. While a significant portion of Bitcoiners bought a crypto asset with the idea of ​​never selling it again and using it as a store of value, there are also many investors who view Bitcoin as a technological investment. These are the sort of stocks that can be compared to Google, Apple, Amazon, and Tesla, so BTC behaves somewhat the same way as these assets.
For this reason, the correlation between Bitcoin and the Nasdaq 100, the American tech exchange, is high, and their prices have moved quite in sync for a long time. Like the Nasdaq 100, Bitcoin's price fluctuates as people seek safe haven in the ""safe"" dollar due to rising interest rates. Once these people exit the Bitcoin market, the crypto asset will likely start behaving like a safe haven again.
If tech investors pull out of bitcoin, so to speak, then it will again behave like a risk-free asset. An asset that is completely separate from traditional financial markets.
sr. member
Activity: 1330
Merit: 257
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September 24, 2022, 04:12:24 AM
#88
is Bitcoin anti-Inflation?

It's hard to say it's anti-inflation in my opinion, because higher inflation will also affect the buying and selling power of btc itself, by looking at the current btc price chart it's difficult to go back up to 30k$ again, hopefully I'm not wrong about this problem. because I see the economic situation during this inflationary period greatly affects all aspects
legendary
Activity: 4466
Merit: 3391
September 22, 2022, 05:24:05 PM
#87
It is basic economics. Money-printing causes (or at least contributes to) inflation.

If the money have been printed excess then the supply of money in the country or the nation will be high ...

Yes, and when the supply of something increases, its price decreases. The money is worth less so things cost more -- inflation.

... and the demand (spending rate) will also be high.

Yes, and when demand for goods increases, the prices of those goods increase -- inflation.

Zimbabwe does it right. Shocked Grin

Exactly.

Bitcoin is not here to remove inflation.

I agree with you on this point. Bitcoin will actually increase inflation (as measured in government currencies) because it will reduce the demand for those government currencies, lowering their values.

sr. member
Activity: 1666
Merit: 310
September 22, 2022, 03:13:15 PM
#86
Printing of money caused inflation? which of the analyst gave you this information? Printing of excess money suppose reduce inflation since there is enough money to be spend in the country. If the money have been printed excess then the supply of money in the country or the nation will be high and the demand (spending rate) will also be high so where does the inflation comes in? Bitcoin is not here to remove inflation.
Zimbabwe does it right. Shocked Grin
hero member
Activity: 700
Merit: 577
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September 22, 2022, 03:10:07 PM
#85
According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?
Printing of money caused inflation? which of the analyst gave you this information? Printing of excess money suppose reduce inflation since there is enough money to be spend in the country. If the money have been printed excess then the supply of money in the country or the nation will be high and the demand (spending rate) will also be high so where does the inflation comes in? Bitcoin is not here to remove inflation.
newbie
Activity: 17
Merit: 16
September 19, 2022, 12:09:03 PM
#84
Bitcoin is not anti-inflation,  "Scarcity" is anti-inflation.    Bitcoin just happens to have scarcity.    This Scarcity of Bitcoin, is not defined by centralization where someone holds a master key but rather "Scarcity" enabled-by "Proof-Of-Work" in place of a centralized cryptography scheme (like POS).  That is why "proof of work" , providing scarcity, is "anti-inflation".

Think about the facts, not your "feelings" on how Bitcoin fits into your clown world.
member
Activity: 222
Merit: 11
September 19, 2022, 11:56:21 AM
#83
In may 2020,the American hedge fund manager Paul Tudor Jones said,  he will be buying bitcoin as a hedge against inflation, bringing what was once an alternative narrative into the financial mainstream. Today's inflation is said to be largely a result of unprecedented money printing. But as always, bitcoin has a finite supply of 21 million - no more coins can ever be created. Unlike the fiat currency, where its value and purchasing power decline as more is printed. That's what makes bitcoin safe against inflation.
legendary
Activity: 2674
Merit: 1048
September 19, 2022, 11:29:55 AM
#82
i think yes , bitcoin is a anti inflation. As gold increases and the price of land increases, the value of bitcoin will also increase over time and inflation is not going to have any effect.

No dude its not Anti inflationary as if you see its performance According to Quarterly but it is anti Inflationary in the Long Run still i think there comes many other points so for now I'm standing there that its not anti inflationary and its not even a currency consider BTC as an asset then you can see better results here.
Well since bitcoin invented to become 'money' 'people money' i think when you encourage people to see more benefit in considering bitcoin as an asset is a sign people losing trust in bitcoin to be used as a currency in daily basis , that being said ... bitcoin might be affected by the inflation once a lot of people agreed with these kind ways to think.

Bitcoin are indeed perform better year after year against inflation but still it doesn't mean completely anti-iflation. Bitcoin just running at its own system while inflation running at the traditional banking system.
hero member
Activity: 980
Merit: 947
September 19, 2022, 10:34:12 AM
#81
No dude its not Anti inflationary as if you see its performance According to Quarterly but it is anti Inflationary in the Long Run still i think there comes many other points so for now I'm standing there that its not anti inflationary and its not even a currency consider BTC as an asset then you can see better results here.
It seems that bitcoin will fall further, today the fall has begun and so far everything looks bad, we can go down significantly. At the moment, it is very difficult to call bitcoin anti-inflationary, because it continues to fall. An anti-inflationary asset is supposed to hold its value during falling markets, preserve the purchasing power of your funds, but so far Bitcoin has not fulfilled this function. Hope now only for growth in the future.
hero member
Activity: 826
Merit: 641
Leading Crypto Sports Betting & Casino Platform
September 19, 2022, 10:04:33 AM
#80
According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?
I think you need to get more informed about this topic as it was not supposed to be phrased like this. What I understand about anti-inflation is what could curb inflation, and how would Bitcoin do that? Yet, let me pretend as if I understand what you are trying to express, and the answer is No, Bitcoin cannot withstand inflation, it will be pressured under it as it is been seeing these days.

Also, I had read about the printing of money causing inflation because of the assumption that consumers would have access to more money and would want to buy more, while the producers/manufacturers would increase prices because of increased demand. But I say they are all nonsense. In this modern day, you have access to your money online and could do anything you want with it without physically holding many of them.

So, how is that relating well with inflation?
legendary
Activity: 1512
Merit: 7340
Farewell, Leo
September 19, 2022, 08:46:56 AM
#79
Bitcoin will not be affected by inflation of any fiat currency, but the increase in the price of bitcoin every 4 years when there is a halving may be considered this movement as inflation
Bitcoin is affected by inflation. Just like any other product, when there's inflation, products with steady demand (such as milk, sugar, flour) are re-evaluated to a higher price. Same can be said for bitcoin, but it's just less important than these, and isn't considered a need (yet). So, once the supermarket trolley becomes more expensive to full, people will sell their bitcoin as they recognize it more as a luxury.

Plus, bitcoin market is far more manipulated than any other. Inflation plays a less significant role to its fluctuations.
sr. member
Activity: 2366
Merit: 448
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September 19, 2022, 08:17:05 AM
#78
Evaluating bitcoin as a store of value, it passes tests based on characteristics such as purchasing power, trustworthiness, liquidity and portability. And bitcoin can hedge against future inflation caused by government stimulus measures and prices cannot be easily influenced by government policies.
and with all that is happening around the world, investing or owning bitcoin can be one of the best options for hedging against inflation.
and the fact that Bitcoin has a limited supply of 21 million coins, 19 million of which have already been mined, so in theory, a high demand for something rare will lead to a price increase and that's for sure in the long run.
legendary
Activity: 966
Merit: 1042
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September 19, 2022, 08:05:16 AM
#77
i think yes , bitcoin is a anti inflation. As gold increases and the price of land increases, the value of bitcoin will also increase over time and inflation is not going to have any effect.

No dude its not Anti inflationary as if you see its performance According to Quarterly but it is anti Inflationary in the Long Run still i think there comes many other points so for now I'm standing there that its not anti inflationary and its not even a currency consider BTC as an asset then you can see better results here.
hero member
Activity: 1974
Merit: 534
September 19, 2022, 07:56:42 AM
#76
It is obviously anti inflationary currency cause, through PoW (Proof of Work) system, Bitcoin's hardness to mine increases over time in years. This means if enough people will keep supporting Bitcoin, its price will keep increasing in next years. I believe Bitcoin tech may get outdated in future so it may need updates or upgrades but, I think we will keep using same old Bitcoin next 10-15 years for sure. Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

I agree with you, there are anti inflationary pressure in bitcoins. The biggest one is the limited supply of BTC, there can't be new coins be printed overnight. Long term bitcoins should be a great tool to protect us from inflation. And if we look at longer time periods, bitcoin has done a good job in keeping its value. The problem is short term price corrections that we saw since the last ATH. Here are much bigger forces at play that bring down the price, while the price boost from rising inflation is only marginal. The world has changed since last year, we can see this also in the stock market which is down 30%.
newbie
Activity: 22
Merit: 0
September 19, 2022, 06:46:20 AM
#75
i think yes , bitcoin is a anti inflation. As gold increases and the price of land increases, the value of bitcoin will also increase over time and inflation is not going to have any effect.
legendary
Activity: 2450
Merit: 4415
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September 19, 2022, 02:42:37 AM
#74
What most people subconsciously refuse to realize is that bitcoin can be said to be anti-inflationary only in isolation from fiat currencies prices, which are known as artificially designed humanly-conjured things for inflationary manipulations. The basic test for anti-inflation is the following: if you can't print it out of thin air by the flick of a switch, then an asset can be said to have properties providing anti-inflation. Take, for example, gold - a physical commodity with strong chemical properties - there is no way to produce it artificially without incurring losses bigger than the price of gold itself. The only economically rational way to obtain gold is through physical effort: whether by extracting it from the Earth's crust or by buying it from others, which also implies physical effort because you were spending your precious time to earn funds with which to buy gold. Bitcoin is no different from gold in this sense: you either extract it or buy it, you can print up it out of thin air like other inflationary assets. That makes it anti-inflationary, but these properties only matter inside the network itself; fiat currency fluctuations shouldn't be taken into account.
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