Topic: Is Bitcoin anti-inflation? (Read 1108 times)

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.

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.

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.

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.

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.

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

It is basic economics. Money-printing causes (or at least contributes to) inflation.


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


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


Exactly.


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.

Zimbabwe does it right.

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.

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.

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.

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.

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.

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?

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.

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.

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.

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%.

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.

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.

With fiat we can say firmly that the inflation increases with time. This happens with most currencies, and there'll be exception with few country's fiat. In all ways bitcoin is stronger than fiat in terms of inflation and other features, but what is being stated seems to be something on prediction and hope and not the truth. No one knows the future of bitcoin, based on the growth it have attained over the years we can expect growth with bitcoin that will be high against the inflated currencies.

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, because as far as I have learned about inflation, it is a price increase that always occurs at any given time, so it is possible the price of bitcoin will skyrocket again as it approaches the halving that will occur in 2024.

Borrowing using Bitcoin currency is terrible when bitcoin price conditions are high because the exchange rate you get can be very little and when the price collapses and repaying the loan will require a very large amount of Bitcoin, borrowing in the cryptocurrency world I prefer to use stable a coin that has a more stable price movement than Bitcoin.

It depends on which side to look at it. Judging by how Bitcoin fell from $69k to $19k, can we call it an anti-inflation model? Very unlikely. This is subject to short-term judgment. Having analyzed the graph of changes in the price of Bitcoin for all the time of existence, you can see a completely different picture, close to the anti-inflationary model of behavior. In fact, this is embedded in the very essence of Bitcoin: despite the fact that the number of Bitcoin mined is growing, which means that the total number in circulation is also increasing, Bitcoin can't be printed indefinitely, like ordinary money.

I don't like fiat, but this is a good point.

What would you prefer to do?

1) Take a $20000 loan at 5% interest rate and repay it 10 years later.

2) Take a 1 BTC loan at 5% interest rate and repay it 10 years later.

I think acquiring 1 BTC in 2032 will be darn near impossible, unless you're super rich.

On the other hand, 20k USD might not even be enough to buy a car due to inflation... easy repayment!

So yeah, I don't think BTC incentivizes a debt-based system.

This is both a good and a bad thing, depending on how you see it... some people consider debt a form of slavery (with invisible and not metallic chains), while others consider a debt-based system necessary to promote economic growth.

But economic growth (due to QE) also means that bubbles will be created from time to time... even BTC's bubbles every 4 years, since we're still in the fiat standard.

It's all based on whether they can scare people away from spending money and make them save up,, especially in centralized institutions that can literally take money off the market.
When inflation is very high like 20% or more raising interest rates doesn't do much because people see the banks are giving them 10% on their deposits a year but they're still going to lose 10 or more to the inflation so it's better to keep spending and buying real life goods, gold, silver, jewelry, even cars because those are not going to lose 10% each year.
Situations like that could be observed in former Soviet Union countries in the 90s where people preferred to buy additional home appliances than hold fiat and they'd hoard washing machines, fridges and furniture.

When inflation is below 10% you can play around with rates. When it goes to 80% like it is in Turkey now it won't change anything. You're on your way to hyperinflation and the big reset of the fiat currency that happens usually at least once every 100 years.

This has nothing to do with inflation. A debt-based currency is reasonable to welcome loaning. Besides, you can loan/borrow bitcoin. Even this Internet board has such place: https://bitcointalk.org/index.php?board=65.0

Certainly not. Inflation exceeded 2-3% about 2 years ago, a little after March 2020. Until then bitcoin was normally appreciating in value.

Yes it's anti inflation or what it is technically termed as deflationary. It works on the concept where the value of the currency becomes stronger over time as it is based on the concept of limited supply but unlimited demand. Ironically we have never had such a currency model for any country before. A set of economists say that deflationary currency isn't practically feasible due to the technical problem called deflationary spiral. As the value of currency will increase over time people will tend to spend less today and save for tomorrow which will reduce the aggregate demand in the economy further increasing deflation and slowing economic growth. This circle is not considered good for economy.

Whether the decline in the price of Bitcoin some time ago, it could have been caused by the current inflation, but if you calculate the rhythm of the four-year cycle, then this year it remains, that the price of bitcoin will get a price decline in all markets, without inflation the price of Bitcoin will certainly  free fall, as we see today, maybe there are some people here who believe in the 4 year cycle, this is just my speculation, it all depends on your belief..

It doesn't impossible, but you just don't know how to get it.
You can get Bitcoin loan from centralized services e.g. Binance, Blockfi, Coinbase etc and you need to provide valid collateral. In this forum there's a lending board [1] where you can become a loaner or borrower, you can get loan without collateral or with collateral depend on your account trustworthy.

So this mean Bitcoin doesn't have any disadvantages since the problem has been solved?

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[1] https://bitcointalk.org/index.php?board=65.0

We do not even have that much bitcoin to be honest, between the million satoshi took away with him, and maybe another million or two that is forever gone from losing them, I would say that there is a good chance we may have something like 17 million bitcoins up for grabs possibly, there are also a lot of long term holders, and I mean a lot.

So that leaves us with maybe like 10 to 15 million bitcoins traded every year, not every day of course because people hold, but every year that could be the real number. So that is a good and important thing that people need to keep in their minds. I personally try my best to keep realizing how scarce it really is, and that gives me hope.

The reason for this is because while Bitcoin was created as a currency, many people use it now as a store of value. However, when using Bitcoin as a store of value, people think how much its value will go up, which means that they multiply the current price by what they think the future price will be. It's not anti-inflation I think it's just a rebalancing of money due to increasing demand.

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.

Yes BTC is anti inflation medium of exchange i would like to elaborate it as Not only anti inflation also well designed supply to demand management which creates its Market price always higher then its realized price except for bear or accumulation period. BTC is true freedom of money. As its anti-inflation you dont need to worry about you savings long term,its decentralized no need to worry about assets freedom spend where you want to, its in growing stage book your place / position now.

Bitcoin is against inflation, but not in short period of time, but in a long period of time. Checking since all-time-high, you will only noticed that bitcoin is inflationary, but not because all-time-high is certain, and that bitcoin is not getting back to the pre-bullsih period price which makes it deflationary. Do not mind those news that bitcoin is behaving like the traditional market, they is all lies, in much longer time, bitcoin is an hedge against inflation.

Central banks only control inflation through interest rates because they don't put a cap on the money supply. You could theoretically have inflation without fluctuation in the money supply if some global event, ie war/COVID-19, caused supply chain issues and increased the scarcity of consumer products. The difference is, induced inflation through money supply increase ensures that the prices do not actually come down. You can't take the money out of circulation once it's already in there (very easily, for that matter). Temporary price increases due to global events eventually stabilize once supply chains return to normal -- it causes prices to go down.

Interest rates are only part of inflation. That's more the reactionary mechanism of inflation. The core mechanism is an unchecked money supply.

This is not true, even though we are in bear season and the drop in bitcoin price makes it hard for miners to mine bitcoins, but they keep going and don't give up despite the tough conditions. It can be said that the bear season will make many miners depressed because they cannot afford to make a profit to spend every day, so they may close a part of their miner, but the big miners, they are still continuing to mine because they have enough reserve costs during hard times. Not to mention once the market rallies, the retail miners will also go back to their jobs. The block reward is decreasing and the difficulty will increase but in return the bitcoin price will increase so they will not pass up this good work.

Based on the systematic view, bitcoin needs to be anti inflationary, but it doesn't look like it is against inflation. The limited supply makes it a tool against the inflated currencies. However to take effect it needs to have the market big as the fiat and now the cryptomarket have begun to coexist along with the traditional market.

Even if the price of the equivalent fiat doesn't increase, the value doesn't decrease. The price of Bitcoin doesn't go down, because it is capped at 12kM.
Yea, people lose their bitcoin because of inability to keep it safe, also people lose fiat to disasters, theft and unknown to them by inflation thereby reducing their purchasing power and their savings strength.  But it's never a reason for them to stop using fiat.

Apart from being safe for inflation, there are some other reasons that people pick interest on bitcoin, such as; liberty to control their money, ability to be private and save their personal data, because of the volatility of bitcoin to make some profits when the price rises. So, bitcoin serves different purpose for different people.

A lot of things have been write before me, and now we can say that the inflation of a euro or dollar currency is something different from a Bitcoin inflation. The central bank can print money and increase inflation. Bitcoin has reached the limit in 2140, that is a huge difference. I see it as simple and only then could we know. Until then every 4 years halving will reduce the rewards. The rewards will stop, the money printing not.

if in the current situation investing in bitcoin will give us comfort later because the value will increase and be greater than the inflation that will occur, so with bitcoin we can save our assets from inflation that will continue to rise later. Unfortunately, to achieve this, not everyone can do it because many people actually lose their assets due to their own mistakes who do not understand the characteristics of bitcoin

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.

Bitcoin as a cryptocurrency, it does have a certain investment value and the ability to resist inflation.

Bitcoin's decentralization means that no government agency or anyone in the world can monopolize the income generated by this asset appreciation, and no one can manipulate this market to obtain extremely high profits. At the same time, because the nature of inflation is the over-issuance of national currencies, the low interest rates of global central banks and huge bond purchase plans have stimulated the demand for Bitcoin. Due to the limited supply of cryptocurrencies such as Bitcoin and their scarcity properties, they can be used as an effective hedge against inflation, so there will be no inflation problem.

I think that for the real use of bitcoin as a single currency I could share my experience if it is anti-inflation or not.
As everyone remembers at the beginning of the pandemic, the price of bitcoin plummeted on March 15, 2020 to $ 5,542.82.

All over the world there was uncertainty as to how it was affecting the economy and in my country Venezuela was no exception. My only means of income was bitcoin an average of $ 20 per week, if I can solve my economic needs taking into account the fall in the price of bitcoin, volatility and hyperinflation I can confess that bitcoin is anti-inflation.

Because the supply of Bitcoin is fixed, it can be said that Bitcoin is anti-inflation. It is very different from fiat which can be printed as much as
the government wants, as a result, fiat will experience hyper inflation. This is why many rich people prefer Bitcoin to keep their money instead of
keeping it in the bank. Because Bitcoin is anti-inflation, where supply is limited and no one can control Bitcoin. So the price of Bitcoin is based on
supply and demand.

That always happens in the market. bitcoin does not depend with what is in global economy. crypto market has their own inflation i would say . anything that has nothing to do with crypto or bitcoin will not affect bitcoin. more appropriately can be called a savior asset from inflation.

It is clear what inflation means is simply excessive printing on a large scale in a very short period of time which causes the price to decrease and will shrink drastically.
from here it is seen that bitcoin is anti-inflation which has been planned very clearly from the start that the bitcoin stock is limited, namely 21 million coins only. from here, actually friends must understand that when it is pegged to a fairly clear amount automatically after the amount of 2 million is fulfilled then bitcoin cannot be mined anymore and this indicates that bitcoin is anti-inflation

bitcoin is touted as an anti-inflation tool compared to gold. The reason why some types of cryptocurrencies can act as a protector against inflation is for the same reason as gold: supply is limited. This is something that is often forgotten by many people, even crypto players themselves, but keep in mind that many cryptocurrencies and especially, Bitcoin are built with inherent limitations. Overall that said, it's not really clear whether Bitcoin is, in fact, a deflationary asset. Or at least, not yet a deflationary asset. While it is technically true that the supply of this cryptocurrency is limited, we are not close to that limit yet.

There is still inflation in bitcoin. Merely 2% a year, which is healthy for the adoption rate of bitcoin.
Premined coins with no incentive to mine will die very fast.

All in all, the bitcoin protocol is so much more than software which can be forked, it's also at what rate the new coins are being mined, and how quick the rest of the world adopt bitcoin. If you miss by one parameter, it will fail.

Ofcourse, that's one of the causes of inflation... But it's not as simple as that. The printed money will only cause inflation if it's used for consumption purposes, or for consumption of basic goods & services without adequate production of more of the goods & services.

So printing for that purpose can add to the demand of goods and services. If demand is greater than supply you could have inflation or there will be scarcity.

Bitcoin is anti-inflation in my opinion. Bitcoin is different from the currency issued by the legal banks of each country. I think there are lots of legends on this forum who understand better and are better able to give an answer if Bitcoin is anti-inflation.

Not just bitcoin but any stock in the market, real estate, and gold can be anti-inflation and save people from losing their money value over time. Depending on your risk level and the amount of money you do have you can choose a market and bitcoin is one of them for the people who aim for the long term. If you aim for the long term and check the bitcoin price in large time frames, bitcoin can be an option for you to stay safe from the world inflation rate. As you mentioned yourself printing money can increase the supply of paper money while bitcoin got a limited total supply, this can one strong reason of why bitcoin can keep you safe from the inflation rate.

Inflation is because we feel that legal currency is worthless, it will purchase items and investments. We will not store legal currency.
Bitcoin does not have a lot of negative impact on the economy. It is generally a good impact.
Because Bitcoin is scarce, it is equivalent to gold.
Everyone about supply and demand of Bitcoin. This is why the bitcoin stored as a value.

I can say that Bitcoin is anti-inflation, the main cause of inflation is the increase in the injection of cash in a way that is not commensurate with the growth of the economy. This does not exist for Bitcoin. It is true that 900 Bitcoins are being pumped daily, but this number will decrease by half every four years. Bitcoin is limited and no more can be added (while you can print an infinite number of banknotes) Also, do not forget about bitcoins that are lost for one reason or another and also due to the low price of bitcoin currently most people hold bitcoin in their wallets and this reduces the supply in the market and can be considered a type of protection against inflation.

IMO, OP seems not talking about Bitcoin as a digital asset but as a currency. If it is related to a digital asset value, I don't think OP will focus on discussing "anti-inflation". What we are looking for on a digital asset is profits, right? Doesn't really care if Bitcoin has inflation or not. But if Bitcoin will be a global currency someday, surely the topic "inflation" will make sense to discuss. Since people probably want to know the advantage of Bitcoin, whether it can be better than fiats or not.  

I would love this kind of experiment:
Let's print a lot of money but don't tell the society/businessmen that you are printing and don't create manual panic. After that, slowly put this money in the society (by increasing wages in government jobs, decreasing taxes, funding education, improving healthcare, etc) and let's see what will happen. I know this sounds impossible but I really want this kind of experiment. I think that the poverty is created manually and if USA/Europe is rich that's because people in China work on very low wages, people in Africa work on low wages, people in India work on low wages, etc. Otherwise just have a look at statistics, every developed / top countries have enormous debts while they tell the poor ones to keep debts under 60% of GDP or they are f*ed.

Deflationary design is incorporated in BTC. But if the goal was to create a pure inflation protected asset, I think there would be more safeguards and features built in to deter volatility.

Inflation alone is neither good or evil. Its a symptom of markets that manifest under certain conditions.

The problem is high risk will always be correlated with high profits. National mints sometimes overprint currency to bailout poor investments made by high rollers in public and private sectors. Leading to economic instability and inflation. The more underfunded programs and investments are, the higher the volume of fiat necessary to bail them out.

Bitcoin definitely represents an improvement over current markets and financial structures. But I do not think its fair to label it a pure inflation protected asset or something that was designed to be anti inflation.

The fact that bitcoin has a finite supply and only had a limited supply in circulation is proof enough that it will help you against inflation just like how investing on gold would help save the value of your wealth. Thing is, bitcoin is very volatile and fluctuations in price may go for the better or for the worst for you. So it's not as reliable as they think it is when it comes to being a store-of-value. Then again most people here who hold on bitcoin aren't here to save themselves from hyperinflation imminent as the central bank prints more and more banknotes to accommodate the lack of enough supply in circulation, it's the fact that holding on bitcoin is profitable enough that they stay. Makes sense, but then again that would be quite impossible since there are some minted bitcoins that are already lost in circulation. Some left in the digital wastelands just like the thousands of bitcoins kept in a harddrive that was accidentally thrown into the dumpster by an IT guy I forgot the name of. But even then you are correct, having this kind of monetary setup where inflation is minimal if there's even any compared to fiat's situation.

Yes, it is anti-inflation but as they point out. Bitcoin is known as a deflationary currency.

You've already answered your question about it. Due to limited supply, it's becoming scarce and value goes up because of the demand and there's halving every 4 years that has shown the effect of it to rise in price.

Until bitcoin hits the total supply of 21 million coins (all mined), it is considered inflationary. but after that has been achieved, it wouldn't be. everyday, new bitcoins are mined by miners and it goes into the circulation and these miners can decide to sell those mine tokens at will. Considering this is just temporary and not for the long run, it is normal compared to fiat currencies counterpart.

Bitcoin is anti-inflation in itself as I consider it a deflationary currency (limited supply + some Bitcoins are lost here and there due to negligence).
So I'd say that Bitcoin in itself is not inflationary, but I wouldn't use it with the sole purpose to protect myself against inflation due to the liquidity and market risks you expose to.

This increase in the price of Bitcoin has happened in a very short time, even a few days ago it was worth about $5,000. In just a few months, its value has exceeded $50,000. Bitcoin prices began to rise just as global pandemic covid-19 raised fears of inflation. Don't you think that people rush to Bitcoin when they suspect an economic downturn due to inflation? and they got Bitcoin promising though it has high volatility?

You might think that Bitcoin is anti-inflationary because the supply is fixed, but that is not the whole story.

Inflation (rising prices) can come from 3 factors, as shown in this relationship: P = MV/Q. Here is how Bitcoin can impact inflation:

• Rising money supply (M). The number of bitcoins is fixed, but Bitcoin fractional reserve banking (FRB) is inflationary and it can increase the apparent bitcoin supply by a large multiple.
• Rising velocity (V). This is how often the same money is respent. Bitcoin transactions are more efficient, so Bitcoin is inflationary with respect to velocity.
• Falling transaction volume(Q). A contraction in the economy is inflationary because the same amount of money is available for fewer goods. Bitcoin has no effect on this.

I really don't know if this bitcoin can be an anti inflation asset or not. Bitcoin had a price of $0 when it was first introduced by satoshi. Maybe initially bitcoin was created as an asset that experienced inflation in its first years, but so far it is possible that the percentage of inflation will go down. Getting a little extra information from the bitcoin.org site, I don't think bitcoin was created as an anti-inflation asset, but there's always a chance that inflation won't happen on a much larger scale.

This is definitely not that simple. All those you mentioned apply if the demanding and every other determinant for that service/product remain the same. You could define it shortly and more properly that way: Your salary remains the same and the total monetary units increase; thus, your purchasing power decreases.

I found something interesting from this tweet

from this I can conclude that
Bitcoin Unlike most other currencies and assets, bitcoin is a deflationary currency due to its unique monetary policy. bitcoin is specifically designed to operate as a robust and secure store of value, and as an alternative to existing banking systems, financial networks, and currencies.
Two distinctive features of bitcoin that distinguish it from bank-issued or operated currencies are its decentralized nature and fixed supply. The supply of Bitcoins is capped at 21 million and as a result, it is impossible for more than 21 million bitcoins to exist.
besides referring to the words of economist Robert Murphy of the Austrian School of Economics who said that
“Part of where this fear of deflation comes from is, historically, it's associated with very bad economies. So, during the Great Depression of the 30s, there were falling prices. And there are other periods where prices fell when things were bad, but I would argue that the causality was the other way around. Partly what was going on there was people were concerned because the economy was so terrible. And, so what do you do when you're afraid? You don't want to invest in companies and things like that. You rush to liquidity. You rush to hard money. That's why you often see in periods of panic people will rush to the money, so you see prices of all other things quoted in money fall. So, it's not that the falling prices caused the bad economy. It's the other way around”
from his words i can conclude that bitcoin deflationary monetary policy will only increase the demand for bitcoin in the long run. As Burniske notes, already 80 percent of the bitcoin supply is in circulation and bitcoin creation will be limited as the years go by, after “halfing the miner reward.
so no need to worry about bitcoin because there will be no inflation in it.

First, come what inflation actually is. Suppose in past you had to spend 100 USD for your daily necessity, but the same thing you have to cost more than 100 USD now, that means inflation is occurring. another example, in the previous you took a service for 100 USD cost, but at present same service spent you more than 100 USD, means inflation occurred.

Now, look what about Bitcoin?? In here Gain is several times more than loss. @bitmover, why you don't take about your signature campaign as an example, the very beginning they had to pay out around ~2BTC in total for your weekly service, Now the same service costs them not more than 0.2BTC according to last week payment. So there is no room for inflation in Bitcoin, it is far away from inflation.

Now come to money printing, If they control Money printing(though I believe they can't), Inflation may occur for excessive demand of any service/products, or excessive production cost, sometimes Unscrupulous traders hold products to make fake Inflation. So, money printing is a factor, and it relies on many other co-factors.

Overall, Bitcoin is the actual solution to inflation, not actually ''anti-inflation''. It has a limited supply with a fixed flexible issuance rate. It is free from arbitrary and authoritarian regulation. you talked about the volatility problem, volatility may impact the short investors, but in the long run, volatility is a blessing.

Bitcoin has it's own inflation rate that is produced with mining every day but it is decreasing with halving every 4 years, so I would not say that Bitcoin is ''anti-inflation''.
However, if we compare Bitcoin with fiat currencies than you can say that it is better to hold Bitcoin than fiat currencies long term, and Bitcoin has a clear advantage.
People who profited most from Bitcoin are ones that forgot about their hard drives with mined or purchased Bitcoin and found it few years later, but if same thing would happen to someone in Venezuela with suitcase full of Bolivars, he would be a broke and poor man.

Indeed, that is a concept that is easy to understand, that limitations make it a hedge against fluctuations in inflation. Because Bitcoin is the opposite of printing dollars that are constantly being multiplied.
the analogy of paper money being printed on a large scale causes inflation, while Bitcoin is printed in limited quantities, it can be said simply that Bitcoin is thus positioned as deflation.

I think OP meant "Is Bitcoin a good hedge against inflation?" although it is difficult to know for sure from his wording.

If this is what he meant, I would say yes, at least so far it has proven to be the best, despite short-term volatility. Just look at how many dollars you would get 10 years ago with 1 bitcoin and how many you get now. The limited, finite nature of Bitcoin is the key.

In my opinion and based on what I know (you can argue) There are several types of inflation in this case, one of which is Bottle Neck Inflation, where I think Bitcoin falls into this category. Of course I have reasons why Bitcoin is included in the Bottle Neck Inflation type.


Meanwhile, according to William De Vijlder, said that

There is nothing in this world that is actually anti-inflation when we talk about things that matters, more or so they are going to be affected by time and the economic situation per say. When we talk about bitcoins and other cryptocurrencies they are ofcourse going to change according to the situations.

If we are talking about bitcoins then you have to understand that bitcoins will change drastically according to the time but at the same time there will not only be more profitable situations for people who are going to hold it for a long term but it could also benefit the people who are using it for Inter-day trading.

I do not understand your question well because when you are considering bitcoins, I do hope that you realize that it's volatile and it's a really important part of the whole situation.

Did you possibly mean “deflationary”?

This is what happens when inflation occurs. But, inflation is caused when money supply grows faster than the rate of the economic growth.

As a person who really loves Bitcoin I respond that it is currently inflationary. Everyday 900 BTC enter the circulation. When the lost coins exceed the newly mined coins, then it'll be deflationary.

I think this is the main cause of inflation. However, the effect is not so easily observed in real life.

Central Banks are also able to control inflation increasing interest rates. When interest rates are high, inflation tends to go down.



Bitcoin  may protect you against inflation, just like gold. The problem is that bitcoin is still very volatile, so you are exactly protecting yourself against inflation. You lose much more money than you would lose to inflation (especially if you live in a country where inflation is controlled), but you may also have huge gains.

So, I think that it is a nice protecting against inflation, but it shouldn't be your only protection against inflation, due to its high volatility.

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?