Topic: Is Bitcoin anti-inflation? - page 3. (Read 1107 times)

When we talk about inflation, there are many things that contribute to inflation. I can categorise them as nation base and global base, so the kind of inflation we are seeing today is global inflation and the role of Bitcoin is not to fight against inflation, be it global or otherwise. But bitcoin can protect you as an individual against the adverse effects of inflation. How will bitcoin be able to do that? it is because one BTC is equal to 1 BTC anytime anyday.

When you talk about the Fiat money, the government prints money, they try to regulate it but inflation keep hitting the economy. Prices of goods are almost trippled just from agter covid-19. One thing about global inflation, bitcoin cannot actually stop it, you remember recently that US released the inflation rate, bitcoin price dropped, this is to show that bitcoin is responsive to the economy.  Bitcoin protects you and not the whole nation.

The central bank of each country may be printing an unlimited supply of fiat which is the main cause of inflation. But for BTC, there will never be an inflation. It continues to be deflationary as there will be no more than 21 million BTC forever.

No matter if we are in an economic crisis for generations, Bitcoin is here to stay and remained deflationary.

Sleeping for a long time, when I woke up I was already in a world that was very chaotic with its economy.
Because of high curiosity made me keep looking on google search until I found an article and I read it over and over again, it turned out that Bitcoin was extraordinary.

Bitcoins are real.
Thank you Satoshi

With the outbreak of the epidemic, central banks of various countries have introduced economic stimulus measures to support the market and economy. Bitcoin's anti-inflation characteristics have played an important role.
The essence of inflation is that the currency is over-issued, and the total amount of Bitcoin is constant at 21 million. The decentralization of Bitcoin means that no one in the world can monopolize the income of this asset appreciation. No one can over-issue, and no one can manipulate this market. It does not rely on the issuance of a specific currency institution, and is generated based on a specific algorithm and through a large number of calculations. It has anonymity and can play a role in anti-inflation when the economy is down.

Money printing/inflation has a very close correlation. Printing money only helps to increase the price of materials and goods while the production volume remains or lower. This causes inflation, every year the rate of inflation continues to increase due to the process of printing money from the government. Bitcoin has a fixed supply and is derived from hard mining, it represents the ratio of supply/demand met with value.

From my perspective i don't think bitcoin can go down any longer, no matter how the inflation of economy in any country or worldwide economy, using when bitcoin was introduced as case of study or reference it's obvious that bitcoin was at zero in value during 2009, but now the value is different, cryptocurrency generally inflation will keep on accelerating instead of deduction in value, in actual sense our objectives is to make a contribution that will make it  or enable it to be rising.

this is one of the advantages of bitcoin compared to fiat, where fiat has been used for a long time than bitcoin. bitcoin is clearly very limited in number and cannot be increased, in contrast to fiat which can change and increase in number depending on the foreign exchange/gold stock owned.
so that inflation will occur in fiat not for bitcoin, so bitcoin is suitable for investment.

The reason is that inflation is defined as money printing in some camps, and rising prices are the result of inflation.

The more current/modern definition of inflation is the opposite. Inflation is rising prices, which can be caused by money printing in addition to other factors.

Overall, the bitcoin protocol is much more than forkable software; it also determines the rate at which new currencies are produced and how quickly the rest of the world adopts bitcoin. It will fail if you miss one parameter.

I don't understand why almost everyone focuses on money printing when it comes to inflation.
Just the other week I remember a somewhat similar discussion and there was the example of Japan, money printing yet deflation.

I'm amazed how these days there are still millions out there who just shout money printing but they don't have a clue what is next in the line after that, and this is the whole difference between having inflation or not. The government or the central bank or whoever has the authorities in this in a country can inject money and send them as paychecks to everyone, you will have more money in circulation, more money poeple are willing to spend, the same amount of goods, you're going to have inflation in consumer goods. The government decides to spend all this money on a project for the infrastructure the inflation will be close to zero, and if the in some cases even bringing in cheaper goods, one example would be an investment in irrigation. The same stands for military spending, you won't see a 10% rise in cornflakes prices because the US is building more nukes.

There is no inflation without increased consumption or decrease in manufacturing, or both of them combined.
Everything comes with the profile of the participants an economy, it doesn't matter if it's gold of bitcoin or fiat, in case of a shortage or break of supply chains like it did with tens of products over the last year bitcoin is not going to help you, it is not going to simply increase its value against the dollar by the same rate as the inflation, things in the economy don't work like this, otherwise, we wouldn't have had countries and citizens going bankrupt before paper money was invented.

If Bitcoin changes the governmentmint's system of printing money at will, what will these companies do if some companies or infrastructure have loopholes in bad assets, but they cannot print money as they do now?
There is another possibility. One day, 1 million US dollars of Bitcoin will be used to rivet the currency of the world. The fiat currencies of other countries still exist, but Bitcoin must be rivetted. At that time, the government needs to print money to help companies or infrastructure. What should the government do?  What kind of scene will it make?

I don't think any asset is completely anti-inflation, because every asset has its own risks and advantages, whether it's bitcoin, gold or real estate.

Yes, four years ago, gold prices were at the worst level, this is because investors became panicked due to the US employment data report that sparked concerns over the US central bank.

The so-called inflation refers to the instability and inflation of currency value caused by the central bank printing a large amount of currency under the conditions of currency circulation.

Bitcoin has a large amount of computing power, is anonymous and has strong hedging properties. And its limited supply will not be issued randomly like national legal currencies, Bitcoin can effectively resist inflation.

Bitcoin can indeed act as a hedge against inflation due to its limited supply, meaning when there is a demand for bitcoin, the price per coin will go up, but given the highly volatile risk, I think bitcoin is better used as an investment.

I may answer yes without hesitation 4 years ago.

But no at this time.
Is gold anti-inflation?
Check out gold price if you wish,  then think why.

I don't think bitcoin in the future could bypass the tricks getting gold price entrapped right now.

What has been described here only applies to fiat and not bitcoin, just as we know volatility is one money feature that applies to bitcoin and can not be applied to fiat. In short inflation and volatility are the only two relations when it comes to supply and demand and are exclusive to each type of money.

You can say it is anti inflationary because you don't print or create new coins at will.

Inflation is mostly caused by the large number of paper money printed by the central bank.

And Bitcoin has the property of scarcity, no government or institution can control the number of operations, and it will never be issued at will. Bitcoin can effectively protect against inflation, and using Bitcoin is a good way to resist inflation.

I don't think it is anti-inflation.
when inflation will become high that is harmful to the economy. again when the inflation level will become too much low that also harms the economy. I think Bitcoin is supposed to use to reduce or control inflation levels but you can't say that it is anti-inflation. Bitcoin can prevent excessive money printing issues or bank corruption but at first, massive adoption of bitcoin has to have occurred.

it's anti-inflation because the value is increasing. a $1000 worth of BTC could be worth $1200 after a week. but you will not look at BTC as anti-inflation once the price dips below your buying price.

Bitcoin today is really skyrocketing including the number of people who holds BTC. today people are making money out of it as it's the best performing asset in the world which is not surprising for most of us. lucky for them who wouldn't experience the long bear market.

You are oversimplifying inflation. Excessive money printing is just one tiny part of the concept of inflation. In fact, inflation is an integral part of the fiat money economy. Other than that, there are so many factors surrounding inflation, its rise and fall, and why a certain level has to be maintained.

Yes, Bitcoin is anti-inflation for me, that's why if we have to promote saving, it shouldn't be done with fiat. It should be done with something else like real properties, precious metals, and of course Bitcoin.