I get that a lot of people talked about how this will not happen because it is huge and this type of insanely high level of inflation only happened in the past and also locally and not a global thing. However, let me put a new perspective on it, you are saying it happened in the past, but we have seen a huge inflation during 2020-2022 period as well, maybe not this high, but it was still pretty high and destroyed many peoples economy and finances right? Which means bitcoin was still better option during that period.
Secondly you are saying localized, but that means it may happen in your nation too, so why not take some defensive measures and buy bitcoin in case your nation becomes like Venezuela?
Topic: Is this what awaits us? (Read 171 times)
But if we follow a similar process, as we seem to be doing, the clear winners will be those who hold bitcoin until the end of the process.
That's actually a good motivation for everybody but, as usual with bitcoin, it's very unpredictable and we don't know what lies ahead in the future about its price.Although I believe that inflation do have its part whenever bitcoin goes into its another series of bull run. For the past years, the inflation wasn't that high until we enter 2021 and when the printing of money has been made.
You're right, inflation can negatively or positively affect Bitcoin. Last time it was high, that is why the price of BTC fell down but I heard they lowered it because some banks are badly affected, and as a result we are now back at $24k something, going to $25k.
Bitcoin is hard to compare with other currencies or assets. The fact is that there is gold - which has always been an asset, there is a dollar, which is not secured by anything and is just a paper. And there are cryptocurrencies. A tool of freedom and transparency. And therefore it is unrealistic to compare it with something, and I believe that all attempts to find correlations are wrong. I just believe that they will be worth 100,000 within five years.
Inflation at least %50 a month? I am pretty sure there are just a few nations that are above %50 inflation per year, let alone per month, there are no nations as far as I know that has %50 inflation in a single month and would probably never be. I think it is important to realize that the best thing to prevent against inflation would be just having bitcoin, other people may not be as lucky as us because they may not know much about bitcoin but we do and that means during inflation period having bitcoin is a great idea. However, that doesn't mean that inflation would be as high as this chart, never.
I have to admit part of me saying YES!
But it would be too good to be true. It's good to be a BTC holder in our time. It is however going to be a mess when something happens in the future back when gold was the most valued asset and then government suddenly bans it and confiscates gold from the people. Before this will happen then most probably the government also will try to confiscate BTC from us.
they do ends up on getting failed due to the fact that it isnt something that could be controlled over or there's no way for it to be confiscated due to anonymous feature or being simply decentralized.
About its price, anything could happen and since we dont know on what the future brings then for those who could really hold of their holdings no matter what then we arent sure
on what are the numbers ahead.
I have to admit part of me saying YES!
But it would be too good to be true. It's good to be a BTC holder in our time. It is however going to be a mess when something happens in the future back when gold was the most valued asset and then government suddenly bans it and confiscates gold from the people. Before this will happen then most probably the government also will try to confiscate BTC from us.
I am not sure we can call this to be a fair comparison to what we are already going through or what could await for us in the future.
The case of the Weimar Republic, the Venezuelan Republic or Zimbabwe are the rather economical anomalies caused by government that were reckless (among other factors).
No serious administration on Earth would stay still and do nothing while the first inflation signals start to appear, leading to the illness evolve towards what the humanity witnessed in Germany.
If we are taking about BTC/$, I doubt something like this would happen as product of the inefficiency of USA, but rather due to Bitcoin limited supply and increasing demand.
The case of the Weimar Republic, the Venezuelan Republic or Zimbabwe are the rather economical anomalies caused by government that were reckless (among other factors).
No serious administration on Earth would stay still and do nothing while the first inflation signals start to appear, leading to the illness evolve towards what the humanity witnessed in Germany.
If we are taking about BTC/$, I doubt something like this would happen as product of the inefficiency of USA, but rather due to Bitcoin limited supply and increasing demand.
But if we follow a similar process, as we seem to be doing, the clear winners will be those who hold bitcoin until the end of the process.
That's actually a good motivation for everybody but, as usual with bitcoin, it's very unpredictable and we don't know what lies ahead in the future about its price.Although I believe that inflation do have its part whenever bitcoin goes into its another series of bull run. For the past years, the inflation wasn't that high until we enter 2021 and when the printing of money has been made.
The image shows the exchange price between Weimar Republic marks in the hyperinflationary period and gold. As can be seen, the marks ended up losing almost 100% of their value and in comparison the price of gold went into the stratosphere. But the process was not a straight line, rather there were sharp drawdown and a lot of volatility:
First thing first, both the Weimar inflation and the Hungarian '46 inflation which goes unnoticed although it had been the worst in history over a smaller time frame, the Venezuelan crash, the Zimbabwe money printing were all localized issues.
Troubled countries, in most serious cases after a devastating war, were forced to pay preparations in a currency they couldn't get ahold of it and were forced to print more and more money to pay that up. Nothing of that scale is happening right now, the only similar example is that of Iran which is doing the same, printing money to buy needed $ but on fall smaller scale, still losing 95% in 6 years but not on those figures.
But I love how things change, after 1 year of painful bear markets one huge jump and everyone is again talking about the death of paper money and banks, the bears have left for their dens, it's party time!
In the past, there were no stocks, banks did not grow in their current form, there was no printing of money (creating it out of nowhere), and there were no alternative options such as Bitcoin, etc. Therefore, there was gold and paper money denominated in gold. Gold will not collapse, and therefore the collapse of paper money means the rise of gold. And so on.
We will not see such charts again, but the sum of all assets other than Bitcoin will be similar.
We will not see such charts again, but the sum of all assets other than Bitcoin will be similar.
is there any special reason that bitcoin has privileges over the other commodities you mentioned earlier, like all of them would be the same except bitcoin.
I think everyone has a role.
It's still not safe even if the statistics shows us that information for now. Remember that anything can happen overnight if you aren't that careful, you'll be swallowed by the currents. As for now also it is still within our imaginations but still we do need to be careful because who knows what will happen? This is crypto we're talking and it's not just another asset or a store of value that most of us traditionally knew.
There is also a huge chance that the bubble would pop if those big fishes decides to play around the market, but it's just a possibility coz who would ever want to lose their money right? In regards of the inflation, I know for sure that in the next few months our country would feel the changes. I'm getting this weird feeling that there will be another change somehow.
There is also a huge chance that the bubble would pop if those big fishes decides to play around the market, but it's just a possibility coz who would ever want to lose their money right? In regards of the inflation, I know for sure that in the next few months our country would feel the changes. I'm getting this weird feeling that there will be another change somehow.
This kind of graph will only happen after a country is devastated by a war, and even then, only with truly incompetent or desperate money printing. It cannot be brought about to this scale by regular economic downturn, or even by recessions / depressions.
Nowadays we have bonds, so a country no longer has to print its own money to meet its debts, they can just sell more bonds to investors. See Greece for example.
Nowadays we have bonds, so a country no longer has to print its own money to meet its debts, they can just sell more bonds to investors. See Greece for example.
It looks like you're imagining things, aren't you just speculating? Because what you are explaining is very impossible.
The only thing I know right now is that if you have bitcoin, don't sell it first, just hold it until it reaches the bull run, then when you enter that season you will decide if you will sell the bitcoin, just estimate how many percent do you want income?
The only thing I know right now is that if you have bitcoin, don't sell it first, just hold it until it reaches the bull run, then when you enter that season you will decide if you will sell the bitcoin, just estimate how many percent do you want income?
The image shows the exchange price between Weimar Republic marks in the hyperinflationary period and gold. As can be seen, the marks ended up losing almost 100% of their value and in comparison the price of gold went into the stratosphere. But the process was not a straight line, rather there were sharp drawdown and a lot of volatility:
Those charts date back to a previous era of history, when people mined gold from the earth with pickaxes and shovels.
The advent of mechanization has dramatically increased mining and production aspects of gold. Substantially increasing the global supply. I believe these upticks in mining technology will lead to a less dramatic and less pronounced price spike.
Another major contributing factor is the global economy of today lacking a gold standard. Most people wouldn't know what to do with gold, leading to large decreases in demand. Gold was a more widely supported token of exchange during that time. There was considerably more infrastructure and economic support for gold, than there is now.
What we should naturally expect is for the supply of gold to increase, with support and demand for precious metals over the same period of time, declining. These two elements should converge to produce a far less dramatic price spike of gold, if one does actually occur.
Another key observation to keep in mind with that chart is that period of time preceding the great depression in 1929. It is possible that the sharp spike in gold supply observed during the 1920s was partially motivated by sharp and savvy investors buying up stockpiles of gold to prepare for the economic downturn of 1929.
In the past, there were no stocks, banks did not grow in their current form, there was no printing of money (creating it out of nowhere), and there were no alternative options such as Bitcoin, etc. Therefore, there was gold and paper money denominated in gold. Gold will not collapse, and therefore the collapse of paper money means the rise of gold. And so on.
We will not see such charts again, but the sum of all assets other than Bitcoin will be similar.
We will not see such charts again, but the sum of all assets other than Bitcoin will be similar.
What you have expressed is only mythical, it will always dwell in the dreams and imaginations, and it will not be the reality of what will happen. My advice to Bitcoin holders is that they should always be watchful and not let some fantasy cloud their judgment into believing they will be so rich overnight.
The coin is now following the due market process, though the holders are safe and will surely earn, not that a historical correlation or belief/theory 'must' make it happen.
The market might disappoint big time!
The coin is now following the due market process, though the holders are safe and will surely earn, not that a historical correlation or belief/theory 'must' make it happen.
The market might disappoint big time!
The image shows the exchange price between Weimar Republic marks in the hyperinflationary period and gold. As can be seen, the marks ended up losing almost 100% of their value and in comparison the price of gold went into the stratosphere. But the process was not a straight line, rather there were sharp drawdown and a lot of volatility:
Quote
that occurred during the hyper-inflationary period. Speculating using leverage got wiped out multiple times.
Without stating that we are about to enter a hyperinflationary period, as it means an increase in inflation of at least 50% per month, similarities can be seen in the leverage that ends up being liquidated, and that the loss of value experienced by fiat with respect to bitcoin is far from being a straight line.
But if we follow a similar process, as we seem to be doing, the clear winners will be those who hold bitcoin until the end of the process.
Jump to: