USD Inflation over the last century. Bitcoin can protect you even in the US.

wxa7115

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Quote from: jaysabi on June 24, 2021, 01:59:37 PM

Bitcoin fell 50% last month. What's safer, a 1-3% predictable devaluation over very long periods of time or the unexpected 50% loss that can come at any moment? In bitcoin's short life, it has a well-established history of losing bigger amounts and more frequently than the dollar's worst years throughout history. Honestly, the argument that bitcoin protects against inflation is laughable because bitcoin has to be more stable than the USD to possibly protect against USD inflation, and it's just simply not. And there's no indication it ever will be.

You are purposely taking the recent crash of bitcoin and taking the best case scenario for fiat and this is not a fair comparison, the US dollar has lost 99% of its value during the last 100 years, I do not have the data but how much value do you think the US dollar lost since the creation of bitcoin? 30%? 40%? And how much value has bitcoin won since then?

It is difficult to know this but since the first bitcoin transaction for a product was the 10k coins paid for two pizzas and assuming each pizza had a value 10 dollars then this means that each bitcoin was worth 0.2 cents and now bitcoin is valued at 33k, a growth of 16,500,00%, now that we have a fairer comparison which one would you like to have and hold for the long term?

Porfirii

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The game rules are set so there is no escape for most of us:

- You earn money = you pay taxes.
- You spend money = you lose it + pay more taxes.
- You inherit something (a house...) = you pay taxes twice, already paid by your fathers when earning and spending their capital in it.
- You save money = inflation during time + negative interest rates work as if you spent it.

There is a continuous force against the individual that in the past was tightly associated with slavery, then feudalism and finally debt, but nowadays is almost inevitable even if you manage to not get into debt, so you have to keep working heavily, and your children, and the children of your children... The idea of wealth is not for most individuals anymore.

I agree that Bitcoin, while extremely risky, could work as a counterforce. It is also known as Plan BTC.

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Quote from: bitmover on June 15, 2021, 11:23:03 PM

Quote

Visualizing the History of U.S. Inflation Over 100 Years

Is inflation rising?

The consumer price index (CPI), an index used as a proxy for inflation in consumer prices, offers some answers. In 2020, inflation dropped to 1.4%, the lowest rate since 2015. By comparison, inflation sits around 2.5% as of June 2021.

For context, recent numbers are just above rates seen in 2019, which were 2.3%. Given how the economic shock of COVID-19 depressed prices, rising price levels make sense. However, other variables, such as a growing money supply and rising raw materials costs, could factor into rising inflation.

To show current price levels in context, this Markets in a Minute chart from New York Life Investments shows the history of inflation over 100 years.
....

At the same time, the Federal Reserve is following an “average inflation targeting” regime, which means that if a previous inflation shortfall occurred in the previous year, it would allow for higher inflationary periods to make up for them. As the last decade has been characterized by low inflation and low interest rates, any prolonged period of inflation will likely have pronounced effects on investors and financial markets.

https://advisor.visualcapitalist.com/inflation-over-last-100-years/

We can see by the chart that US has a constant 1-3% inflation over the last decade. Somewhat controlled low inflation, but there were huge spike in the past.

Those spikes (some of them more than 15% in a year) can destroy our economic power within a short period. Also, 1-3% inflation rate every year is also consuming our buying power every year. Will we face another of those spikes soon?

I see that bitcoin rises is bringing up this discussion about inflation again, and I see this discussion all over the place.

Bitcoin fell 50% last month. What's safer, a 1-3% predictable devaluation over very long periods of time or the unexpected 50% loss that can come at any moment? In bitcoin's short life, it has a well-established history of losing bigger amounts and more frequently than the dollar's worst years throughout history. Honestly, the argument that bitcoin protects against inflation is laughable because bitcoin has to be more stable than the USD to possibly protect against USD inflation, and it's just simply not. And there's no indication it ever will be.

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Quote from: Flexystar on June 21, 2021, 01:16:53 AM

Not sure if you guys are considering the current drop in prices of crypto or not but that does seem to me worst hit assets. I mean bitcoin itself is half the value of its ATH and the price is not two digit or three digit but it’s whooping five digits guys so it’s highly highly unstable to overcome our inflation?
I am thinking that bitcoin can not protect us in that situation.

I am able to get the frustrations of those people who bought around ATH but how about all other people who are holding bitcoins since 2011 or even from 2010? For such people, bitcoin must be helping to get protected from inflation, right?

For you, it may be a right approach to consider about ATH with respect to current price levels but for me, I am holding since 2017 and I am still into profits and I never need to worry on recent drop. So, how you are making use of bitcoin will define how much financial freedom you may enjoy against inflation and all other economic related problems.

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Quote from: Wind_FURY on June 18, 2021, 05:35:59 AM

The effect of the Fed’s BRRR money printing is also worse for the countries that hold U.S. Dollars in their reserves, which is ALL countries.

And it is because of this that we have seen some countries to begin to take action as the US is abusing their position of power, it is bad enough that a government can abuse their citizens but when the US government can abuse even other governments by just printing money then this is simply intolerable.

But this plays out in our favor, and it is I think one of the reasons bitcoin is now legal tender at El Salvador, the US is legal tender there as well and I am sure they were not happy with all the money that was printed, so now they took action and I will not be surprised if we see many countries following their footsteps on the near future.

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Quote from: bitmover on June 15, 2021, 11:23:03 PM

We can see by the chart that US has a constant 1-3% inflation over the last decade. Somewhat controlled low inflation, but there were huge spike in the past.

Those spikes (some of them more than 15% in a year) can destroy our economic power within a short period. Also, 1-3% inflation rate every year is also consuming our buying power every year. Will we face another of those spikes soon?

I see that bitcoin rises is bringing up this discussion about inflation again, and I see this discussion all over the place.

I invest into bitcoin basically all because of this reason. Not because it is the only way to make money, of course you can make money in different ways, as long as it is not fiat you could always make money, but fiat is not the way to make money. Buy a house? Sure. Buy gold? Sure. Buy oil/silver other assets? Sure. What you buy that is going up against the inflation works, but having fiat makes zero sense to me.

I will never own fiat as investment, that just doesn't make sense, "money" as investment doesn't make sense. My parents bought a house for 5000 in our currency 22 years ago this month, their house worths 500k in our currency right now, that is 100x in 22 years, and they are no richer now then back then, so bitcoin seemed like a better option for me, I could make 100x in a month if I am lucky with some altcoins.

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Not sure if you guys are considering the current drop in prices of crypto or not but that does seem to me worst hit assets. I mean bitcoin itself is half the value of its ATH and the price is not two digit or three digit but it’s whooping five digits guys so it’s highly highly unstable to overcome our inflation?
I am thinking that bitcoin can not protect us in that situation.

sana54210

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Quote from: bryant.coleman on June 20, 2021, 07:21:08 AM

I have to agree when you claim that the United States Dollar is the biggest financial fraud ever committed. The American government made the other countries to use it, by making the USD reserve and trade currency of the world. And since they are the sole issuer, now they are taking advantage of it by printing unlimited amounts of banknotes and increasing the federal debt to unsustainable levels. They don't really care whether the USD undergoes inflation. Because since it is the global trade currency, the impact of inflation will fall on everyone in the planet.

USD on default wasn't this bad thing, it was the government that made it into something this terrible. Before the second world war there wasn't really that much trouble financially or overseas, USA wasn't killing latin american presidents in 19th century as far as I can remember (I might be wrong) but eventually one by one they either killed (assassinated) the rightful presidents and installed a puppet president, or they just lost and said "I ain't playing by the rules" and put embargo on nations like Cuba and some others, that way the closest big nation would deny working with you and you would end up with a bad nation obviously, if Europe decides to embargo USA today even USA would be in big trouble.

This is just one example, they kept attacking every nation they could sink their teeth into and know they can win, have you seen USA ever declare war on a big opponent? They just financially ruin every place they can find. It is all politics, and a big shame.

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Quote from: Karartma1 on June 20, 2021, 04:10:54 AM

Then allow me to comment that you better take another round of lessons around bitcoin Wink

I mean no offence but you can't deny the fact that since bitcoin inception there hasn't been any better protection against inflation. Being deflationary by default and being compared to the biggest fraud on earth (the USD) there's nothing else to say.

I have to agree when you claim that the United States Dollar is the biggest financial fraud ever committed. The American government made the other countries to use it, by making the USD reserve and trade currency of the world. And since they are the sole issuer, now they are taking advantage of it by printing unlimited amounts of banknotes and increasing the federal debt to unsustainable levels. They don't really care whether the USD undergoes inflation. Because since it is the global trade currency, the impact of inflation will fall on everyone in the planet.

Karartma1

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Quote from: shield132 on June 20, 2021, 04:00:35 AM

I don't understand one thing, how can bitcoin help us in this situation?

Then allow me to comment that you better take another round of lessons around bitcoin Wink

I mean no offence but you can't deny the fact that since bitcoin inception there hasn't been any better protection against inflation. Being deflationary by default and being compared to the biggest fraud on earth (the USD) there's nothing else to say.

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I don't understand one thing, how can bitcoin help us in this situation? Do you look at bitcoin as an asset that rises every time and its rise will counteract the negative direction of USD?
Why is bitcoin rising? Can you give me a single reason where you can prove that 40K Bitcoin price is logical? Can't bitcoin perform well at 10K? There is just super hype around it and pure manipulation. Don't call me a BTC hater because I am not but I think that it's reality.

Btw it's just very funny, Americans don't like USD and are looking for alternatives and in some countries, people ignore their national currencies and buy as much USD as possible.
It's mostly a psychological factor to my mind. Just show people the fake positive numbers, create the strong hype and positively manipulate with the price, people will be happy but one bad/wrong news and crash will be fatal Cry

Like in Bitcoin, from 60K to 30K, 50% decline in some days. Imagine that on USD...

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Quote from: gantez on June 17, 2021, 07:11:10 AM

Quote from: magneto on June 17, 2021, 06:50:20 AM

BTC should therefore be in the portfolio of anyone who is serious about preserving their purchasing power over the long run. Gold is clunky and archaic, yet BTC has all of that and more.

But is stocking of bitcoin the solution from suffering from inflation? In the past one month, bitcoin has barely made it profit in investment for those who hodl at around $40,000/36,000. After the ATH, bitcoin has dropped maybe waiting for another round of bull. The point is reinvesting capital in other aspect like manufacturing and running SMEs can also support that an individual can have enough floating liquidity.

If you're concerned about short term volatility like this, go back to fiat and watch your savings steadily yet surely lose value.

The value of bitcoin does not come from any short term gains that it may make due to excessive volatility. Rather, it comes from the fact that it is a long term decentralised store of value and is set up in a way so that no central bank may manipulate its money supply.

You've seen how BTC has steadily appreciated over the past decade. A large portion of the gains were from new adopters, sure, but to a degree it is also showing its strength as a great long term place to park your funds.

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Quote from: bitmover on June 15, 2021, 11:23:03 PM

~
I see that bitcoin rises is bringing up this discussion about inflation again, and I see this discussion all over the place.

The price rise in Bitcoin is not the reason some of the financial experts are talking about inflation and how it could lead us to the next recession but the actions by the government in the past one year who took major drastic decisions which will hurt the economy and the recovery process is going to take a long time and during this period some of the government were printing more money which is not going to help either.

It is really difficult to predict what the next 5 years will be, we might see another wave of the virus or a new mutation and then the economic situation is getting worse along and the unemployment rates are rising globally and the recovery wont be easy.

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Not entirely but if you are very much sufficient and you are able to analyze the market considering the Volatility, this makes you much more secure in this market. The general impact is more unpredictable and therefore you have to understand that bitcoins will not 100% save you from the inflation, IT CAN for sure but you have to wait for the right moment. For example people who encashed after the big crash back in 2018 suffered huge losses and if they would have waited for 2021 then it would have been much different. You need *patience*.
It might be misleading to tell someone that "bitcoins will save you from the inflation" it would be right to say "bitcoins can save you from the inflation if you play your cards right"

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Undoubtedly, the impact of the pandemic changed the consumption habits of American citizens, causing an increase in the percentage of inflation that could be temporary now that the country's economy begins to activate due to the low incidence of Covid19 cases achieved by the massive vaccination plan.
The stimulus checks in the United States have allowed the economy to be maintained, so inflation has not been felt because the prices of the basic basket have remained almost the same in reference to recent years, unlike the real estate sector that has increased.
Fortunately bitcoin is in perspective in the USA in some way to another it will contribute to the economic development in the country.

AniviaBtc

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Bitcoin is the answer to somehow fight inflation and it is really true because I experienced it in my country.

People are just lazy enough to study bitcoin and understand its importance in the economy and in the market so that we can still make profits.

Money is always inflating so it is good if you will invest something that is valuable.

Wind_FURY

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Around 40% - 50% of TOTAL AMOUNT of U.S. Dollars was printed after Bitcoin went online. YES, that much U.S. Dollars was printed AFTER 2011.

https://fred.stlouisfed.org/series/M2SL

If only someone invented a currency which the supply can’t be inflated on a whim by a cabal. Cool

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Yup, inflation indeed is hitting the U.S. pretty bad and is affecting a lot of people in the economy at the process. And with he numbers being as big as they already are, I still think that given the state of the people, businesses and stock, the numbers may be worse than what they are actually showing and that the effects are actually heavier than what they allow to be seen. Although I cannot say this for sure, we just cannot rule out the possibility of them hiding actual numbers to minimize panic and maintain pride. Only time will tell whether this is true or not.

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Japan’s economy is probably opening up again, and close to 100%. It’s not Doom and Gloom inflation, and 20% increase of gasoline prices was the cause, but Japan has not seen inflation gains since March 2020, https://www.bloomberg.com/news/articles/2021-06-17/japan-inflation-rises-for-1st-time-since-last-march-as-boj-meets

Quote from: Coyster on June 17, 2021, 12:47:22 PM

Quote from: bitmover on June 15, 2021, 11:23:03 PM

Will we face another of those spikes soon?

Imo, I think the U.S. will, inflation is the direct consequence of most of the actions of the government to control the covid-19 pandemic, printing money is one of such actions, the initial lockdowns were also detrimental to the economy, and the effects are still being felt till date, it's pretty obvious that the inflation rate in the United States is going to go up, definitely higher than in 'normal' years.

The effect of the Fed’s BRRR money printing is also worse for the countries that hold U.S. Dollars in their reserves, which is ALL countries.

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Quote from: el kaka22 on June 17, 2021, 03:09:30 PM

Coca cola could increase EVERY SINGLE WORKERs wage 50% and keep the can of coke price the same and they would still profit, that is just one example, it is like that for almost every company.

Yeah, simply, increase the age and take a chuck out of those profits, the easiest solution available, and the easy way to lead a company to bankruptcy. You pay more wages you pay less your investors, investors dump your stock and nobody is willing to buy as they are not making a penny from it, guess what comes next?
You speak so easily about that because you don't own shares there, isn't it? I'm amazed how people here who embraced bitcoin and keep saying be your own bank, bitcoin is a way of avoiding movement control are at the same so eager to tell others how they should spend their money! Kind of ironic, you don't want a government to dictate what you do with your money but you want to be able to tell others that!
And the easy solution is always achieved by others going up profits, always the others!

Quote from: Kakmakr on June 17, 2021, 07:54:59 AM

Inflation rate is a flawed measurement ... because it is being manipulated by governments. So, what they do is this... they will never measure the inflation on the same goods and services every year.

All the items measured are publically listed, including the ones that are no longer taken into account and the ones that have been introduced.
And if you don't trust those numbers then let's look at some archived flyers:

August 2020 https://www.openingtimesin.uk/offers/lidl/1001493?from=4
May 2021 https://www.openingtimesin.uk/offers/lidl/1002275?from=4

2 pork escalopes were 2.99...new price 2.99
Coffee pack, 6.99 is now 6.99
Peanuts 2.79, now 2.69
Gelatelli almond icecream 2.29 is 2.29

el kaka22

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Let's hope that people can realize that inflation is just something rich people basically created in order to get richer and nothing else. Minimum wage is basically under inflation rate (not always official, but unofficial real inflation numbers) in almost every single nation, why? If you increase the minimum wage as much as the real inflation then the rich folks at the corporations would have to make less profit, look at big companies and you will see that they are making more and more profit each year, they rarely ever declare less profit but when you look at the minimum wage it is almost always less than what they profited, so then they say it is inflation when things get more expensive when in reality things get more expensive because they want to make more profit.

Coca cola could increase EVERY SINGLE WORKERs wage 50% and keep the can of coke price the same and they would still profit, that is just one example, it is like that for almost every company.

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Quote from: dark1234 on June 16, 2021, 02:23:00 AM

This is one of the reasons why many bet on Bitcoin other than to hedge against the possibility of high inflation due to accommodative monetary policy and expansionary fiscal. The role of Bitcoin as an asset for hedging can indeed be competitive
so that many big business experts and economists are discussing it again after recently not only the dollar in other currencies there was inflation in every country because of the covid-19 pandemic.

You're right, Bitcoin is not just a hedge, it's more than that. Bitcoin becomes more valuable when everyone can use it for the future welfare of our descendants. maybe the crisis is always changing seasons. and Bitcoin will be the savior of it all. inflation is unlikely to touch Bitcoin. when paper money becomes valueless, Dollars continue to be printed on a large scale, Bitcoin will be the first to stand tall, protecting us from any financial threat.

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Quote from: bitmover on June 15, 2021, 11:23:03 PM

Will we face another of those spikes soon?

Imo, I think the U.S. will, inflation is the direct consequence of most of the actions of the government to control the covid-19 pandemic, printing money is one of such actions, the initial lockdowns were also detrimental to the economy, and the effects are still being felt till date, it's pretty obvious that the inflation rate in the United States is going to go up, definitely higher than in 'normal' years.

Bitcoin in this case can well and truly protect its users who understand how it operates and aren't just 'get rich quick investors', and since Bitcoin wasn't directly affected by the pandemic that's directly causing most of the inflation, then it's a good hedge/option in that regard.

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Quote from: bitmover on June 15, 2021, 11:23:03 PM

Quote

Visualizing the History of U.S. Inflation Over 100 Years

Is inflation rising?

The consumer price index (CPI), an index used as a proxy for inflation in consumer prices, offers some answers. In 2020, inflation dropped to 1.4%, the lowest rate since 2015. By comparison, inflation sits around 2.5% as of June 2021.

For context, recent numbers are just above rates seen in 2019, which were 2.3%. Given how the economic shock of COVID-19 depressed prices, rising price levels make sense. However, other variables, such as a growing money supply and rising raw materials costs, could factor into rising inflation.

To show current price levels in context, this Markets in a Minute chart from New York Life Investments shows the history of inflation over 100 years.
....

At the same time, the Federal Reserve is following an “average inflation targeting” regime, which means that if a previous inflation shortfall occurred in the previous year, it would allow for higher inflationary periods to make up for them. As the last decade has been characterized by low inflation and low interest rates, any prolonged period of inflation will likely have pronounced effects on investors and financial markets.

https://advisor.visualcapitalist.com/inflation-over-last-100-years/

We can see by the chart that US has a constant 1-3% inflation over the last decade. Somewhat controlled low inflation, but there were huge spike in the past.

Those spikes (some of them more than 15% in a year) can destroy our economic power within a short period. Also, 1-3% inflation rate every year is also consuming our buying power every year. Will we face another of those spikes soon?

I see that bitcoin rises is bringing up this discussion about inflation again, and I see this discussion all over the place.

It is widely known that the CPI is a flawed way to measure inflation as the government manipulates this statistic to show that the inflation is low when in fact this is not the case, there was a time it was useful as the same products were tracked over the decades but then the government manipulated this as the real numbers made them look bad.

To obtain the real numbers just take a look around you and see how much something was worth before the pandemic and how much is it worth now and you will realize the numbers are nowhere close to what the government state.

BrewMaster

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i've been saying this for over a year now. ever since the US government decided they wanted to print a ton of USD we knew that the big inflation is going to get to us very soon and it has been showing its ugly face for some time now. it is more than the usual 3% and it is showing itself in places like real estate and food costs.

bitcoin on the other hand is still very strong even though it is affected by FUD for some very short periods.

mu_enrico

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From the last 12 years, sure Bitcoin is a phenomenal thing (asset, money, or whatever you want to call it). Not only we can use it as a hedge but also it can make us rich! The important question is, what will happen in the next 12 years? Nobody knows.

However, from short time perspective, the volatility won't protect you from inflation. It's only applicable in the long time horizon.

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Inflation rate is a flawed measurement ... because it is being manipulated by governments. So, what they do is this... they will never measure the inflation on the same goods and services every year. Inflation is an increase in the level of prices of the goods and services that households buy... but the governments add or remove some goods and services from that CPI basket to suit their manipulated basket.

Some of the goods and services that rise a lot, will be removed from the basket.. so you do not see a real picture of the price increases. (Health & medical and electricity prices and rates etc...) Roll Eyes

You only see what the government want you to see... because they know salary negotiations are linked to Inflation. If they can keep it low... then salary increases can also be kept low. Roll Eyes

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Quote from: magneto on June 17, 2021, 06:50:20 AM

BTC should therefore be in the portfolio of anyone who is serious about preserving their purchasing power over the long run. Gold is clunky and archaic, yet BTC has all of that and more.

But is stocking of bitcoin the solution from suffering from inflation? In the past one month, bitcoin has barely made it profit in investment for those who hodl at around $40,000/36,000. After the ATH, bitcoin has dropped maybe waiting for another round of bull. The point is reinvesting capital in other aspect like manufacturing and running SMEs can also support that an individual can have enough floating liquidity.

magneto

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People have to realise that periods of relative stability when it comes to inflation are exceptions rather than the rule.

I see a lot of people that are comfortable with parking their funds in a high interest savings account that pays less than 1% when inflation was literally 5% YoY last month in the U.S.. There has been no fiat currency that has survived the test of time, regardless of the method of downfall - whether that be political or financial.

BTC should therefore be in the portfolio of anyone who is serious about preserving their purchasing power over the long run. Gold is clunky and archaic, yet BTC has all of that and more.

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I agree that Bitcoin can protect us from inflation, but also people need to know that such an investment is always a risk - especially if it is a short-term investment. The US has its own monetary policy and I have no doubt at all that they will be persistent in what they do, because no matter what the government does, you can never save all people from poverty or give them a somewhat dignified life.

The question arises when someone says “Bitcoin can protect you even in the US”, to whom does it refer? I am sure that these are not the millions of homeless people who camp in the city areas and eat in public kitchens, or those who have enough only for basic living needs and have nothing left for risky investments. They will remain at the bottom, regardless of Bitcoin or any technological achievement - unless the whole world is transformed into a completely different society in which there will be no such drastic inequalities.

Wind_FURY

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Quote

Fed Chair Jerome Powell said inflation could run hotter than the central bank expected.

“As the reopening continues, shifts in demand can be large and rapid and bottlenecks, hiring difficulties and other constraints could continue to limit how quickly supply can adjust, raising the possibility that inflation could turn out to be higher and more persistent than we expect,” Powell said during the press conference.

https://www.cnbc.com/2021/06/16/fed-meeting-live-updates-watch-jerome-powell-speech.html

The same assessment made when I started this topic, https://bitcointalksearch.org/topic/big-test-for-bitcoin-during-the-next-economic-collapse-5319233

But I believe that the Federal Reserve is still in the “It’s OK, it’s just transitory” stage, trying to calm everyone. BUT, as inflation becomes more noticeable, the people have a tendency to buy now in fear of said inflation, causing prices to spiral much faster upwards.

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Quote from: dkbit98 on June 16, 2021, 08:23:47 AM

Official statistic is always rigged and fake and you can see that if you check consumer prices and purchasing power for us dollar, not to mention that other countries are probably doing worse than United States.
Real inflation is probably around 10% in US and I expect this number to grow even higher with their economical measures, money printing and crazy lockdowns that speeded up this process.
Maybe they want to destroy economy and everything else, and then magically offer worse possible solution with fully controlled total tracking CBDC, so I see Bitcoin and precious metals as only option to escape from this scenario.

I wouldn't say 10% yearly because that is way too much, aren't there things that are much more expensive? There are but the reality is that when you take the average 10% is just way too much, it is not as bad right now and that is why I believe it is higher than what is shown here, but not as much as 10%, I would say over 5% is more correct, about 5 to 6 is where I believe it has been for the past decade, and as we all know there were times when it was even higher but that is shown in the chart anyway.

So long story short there is really nothing that should be considered as a problem because that type of inflation is not that bad as long as it is distributed equally. It is the fact that there are more people living under poverty levels and there are more billionaires, sure if you work hard and provide something that everyone wants making a billion dollars should be your goal but if you make a billion dollars and a million people got a bit poorer, then what is the end? What is going to be the last situation? What if we have 10k+ more billionaires, should we steal their money? No. Should we let everyone else eat dirt? No. We need a solution.

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Consumer indicators may not be a correct measure. Some of the changes that occurred in the past year and we may need some years to adopt them again. Consumer confidence has changed due to the repercussions of the Corona pandemic, the loss of job security, and fears of not being able to pay bills.
we still fighting COID-19 pandemic at so it is early to start evaluating its effects.
Therefore, all these factors make me not trust any economic indicator now.

livingfree

hero member

Activity: 2884

Merit: 579

Hire Bitcointalk Camp. Manager @ r7promotions.com

Holding bitcoin really can defeat inflation of USD. It's design to be deflationary not just a currency but as an asset.

I wonder how much percentage would be the inflation if the time of bitcoin reaches $500k-$1M. I think institutions that have saw it firstly are doing their own thing and that's why they've been buying not just millions in bitcoin but hundred millions and more.

Gyfts

legendary

Activity: 2828

Merit: 1515

Quote from: Poker Player on June 16, 2021, 01:59:54 AM

To me that chart only tells half the story. Annual inflation matters, if we believe it, as the CPI does not accurately reflect the effects of currency printing, but even more important is cumulative inflation. An average inflation of 3% causes you to lose half your purchasing power in a few lustrums. Of course, if there are big spikes it is even worse, and the best way to protect yourself is to buy inflation-beating assets, Bitcoin being the one that seems the best, at least in the last 10 years.

The average inflation rate year per year does matter, yes, but that's only if the economic situation looks better -- meaning, do we expect the printing machine that is running on overdrive to be pulled back over the next few months, which would then combat the 5 percent inflation rate for USD? The answer is probably no. USD becoming worthless so soon is not something I predicted, but hey, the numbers don't lie!

Fesatmas

sr. member

Activity: 2268

Merit: 275

The US needs to carry out a serious evaluation in order to maintain the resilience of the dollar's value so as not to be underestimated. but the fact is that after this last year the inflation rate is terrible. It's only natural that the pandemic has forced the US to print more and more money, not realizing that inflation continues to eat away at it.
Isn't this on the verge of collapse, when the value of the rising Yuan is that the dollar has almost no value. Bitcoin guarantees that everyone can survive this massive inflationary process.

dkbit98

legendary

Activity: 2212

Merit: 7064

Official statistic is always rigged and fake and you can see that if you check consumer prices and purchasing power for us dollar, not to mention that other countries are probably doing worse than United States.
Real inflation is probably around 10% in US and I expect this number to grow even higher with their economical measures, money printing and crazy lockdowns that speeded up this process.
Maybe they want to destroy economy and everything else, and then magically offer worse possible solution with fully controlled total tracking CBDC, so I see Bitcoin and precious metals as only option to escape from this scenario.

henmark

sr. member

Activity: 812

Merit: 272

You’re right of course, Bitcoin can protect your money, same thing as other good assets there are. Even before Bitcoin was developed there have been other ways that people has been using to store their value so that they don’t end up losing money because of inflation.

Although right now bitcoin seems to be a better choice because of how much you can make from it, which is as a result of the price volatility.So there is no doubt about that, and a lot of people who have been investing for long, including have witnessed it. Bitcoin has changed a lot of people’s lives, and took them to a level that could have taken them years to achieve.

Wind_FURY

legendary

Activity: 2898

Merit: 1823

OP, there an interview in CNBC with Kyle Bass, a CIO from Hayman Capital Management, that said he “believes” the actual inflation rate in the U.S. is probably 12%, and that the data where the inflation rate is based was designed to make it artificially low. I can’t find the link to that video interview though, I saw it on TV.

zanezane

full member

Activity: 868

Merit: 150

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Those spikes are coinciding with the economic crisis that US has experienced like the Housing Crisis in 2008 and the Recessions, all of them used stimulus checks to alleviate the damage, that's why the inflation during those times are really high.

dark1234

full member

Activity: 1134

Merit: 167

This is one of the reasons why many bet on Bitcoin other than to hedge against the possibility of high inflation due to accommodative monetary policy and expansionary fiscal. The role of Bitcoin as an asset for hedging can indeed be competitive
so that many big business experts and economists are discussing it again after recently not only the dollar in other currencies there was inflation in every country because of the covid-19 pandemic.

Poker Player

legendary

Activity: 1372

Merit: 2017

To me that chart only tells half the story. Annual inflation matters, if we believe it, as the CPI does not accurately reflect the effects of currency printing, but even more important is cumulative inflation. An average inflation of 3% causes you to lose half your purchasing power in a few lustrums. Of course, if there are big spikes it is even worse, and the best way to protect yourself is to buy inflation-beating assets, Bitcoin being the one that seems the best, at least in the last 10 years.

bitmover

legendary

Activity: 2352

Merit: 6089

bitcoindata.science

Quote

Visualizing the History of U.S. Inflation Over 100 Years

Is inflation rising?

The consumer price index (CPI), an index used as a proxy for inflation in consumer prices, offers some answers. In 2020, inflation dropped to 1.4%, the lowest rate since 2015. By comparison, inflation sits around 2.5% as of June 2021.

For context, recent numbers are just above rates seen in 2019, which were 2.3%. Given how the economic shock of COVID-19 depressed prices, rising price levels make sense. However, other variables, such as a growing money supply and rising raw materials costs, could factor into rising inflation.

To show current price levels in context, this Markets in a Minute chart from New York Life Investments shows the history of inflation over 100 years.
....

At the same time, the Federal Reserve is following an “average inflation targeting” regime, which means that if a previous inflation shortfall occurred in the previous year, it would allow for higher inflationary periods to make up for them. As the last decade has been characterized by low inflation and low interest rates, any prolonged period of inflation will likely have pronounced effects on investors and financial markets.

https://advisor.visualcapitalist.com/inflation-over-last-100-years/

We can see by the chart that US has a constant 1-3% inflation over the last decade. Somewhat controlled low inflation, but there were huge spike in the past.

Those spikes (some of them more than 15% in a year) can destroy our economic power within a short period. Also, 1-3% inflation rate every year is also consuming our buying power every year. Will we face another of those spikes soon?

I see that bitcoin rises is bringing up this discussion about inflation again, and I see this discussion all over the place.

Topic: USD Inflation over the last century. Bitcoin can protect you even in the US. (Read 257 times)