I don't think inflation will have an impact on the Bitcoin price increase. inflation may occur when the Bank will print more Fiat to be circulated. whereas when no adoption happens to Bitcoin, it will have no impact on the price of Bitcoin.
Except when there is a Bank bankruptcy, with a country's Fiat value continuing to decrease. and hope that the government sees Bitcoin as a digital currency that will be the solution. not expect foreign debt. it could grow Bitcoin adoption and also be great news for the Bitcoin market. it could affect the price of Bitcoin.
Topic: Why we want inflation for good value on BTC? - page 2. (Read 280 times)
It doesn't work like that, if the banks start to print fiat and it will increase inflation, but the citizens don't care about inflation and choose to save their money in banks, it will not make Bitcoin price increase because they're not contribute anything to Bitcoin's demand. The most important thing many people need to buy Bitcoin, that's will make Bitcoin price increase due to high demand regardless the inflation is high or low.
which could result into low demand of bitcoin
What difference does it make if the demand for bitcoin rises or falls? One BTC will remain one BTC. Of course, we all know the theory that money is a kind of commodity, but bitcoin itself is designed in such a way that when interest rises and falls, the level of complexity simply changes, and the network itself continues to work stably, so it’s not scary if the demand for bitcoin decreases.
Does that mean we should be embracing the printing of money?
Make all our money go totally out of value, so anyone holding BTC can get good value?
Does this make sense?
No it doesn’t make much of a sense if there is an excess printing of the fiat money then it could causes its devaluation which in return would at first causes many to move towards bitcoin for hedge against the devaluation. But as it continues it causes more money supply which results into inflation. Although bitcoin hedges also against inflation but and a prolonged inflation will cause high of goods and services which could result into low demand of bitcoin. Also many could turn to there holdings for emergency.
There is no anticipation of inflation, and creating more fiat currency does not necessarily result in an increase in the value of Bitcoin. It's important to comprehend how the price of Bitcoin operates. As buying pressure intensifies, the price is expected to rise. In the event of global inflation, there may be fewer buyers. When money circulation is low, banks print more fiat currency, which does not lead to a rise in Bitcoin price.
Bitcoin fiat value increasing due to the printing of lots of money is not different to Bitcoin fiat value being stagnant. Yes Bitcoin fiat value maybe higher when the value of fiat currency devaluate. It also means that there is no change of the purchasing power of Bitcoin since the fiat price value increase is due to the said inflation. So I can say that Bitcoin price increase due to printing of money is does not increase the value or purchasing power of Bitcoin and only increase the amount of fiat needed to convert Bitcoin to fiat currency.
If cash becomes useless, then this means that there will be a war, and therefore no one wants that, but all that is required is that you have enough money to live your life and then, if one bitcoin is worth 10 million dollars, then the value of the dollar will not buy you gum.
Thus hyperinflation is not beneficial but bad for all.
Thus hyperinflation is not beneficial but bad for all.
To be honest, I don't think that would make a huge difference. Bitcoin's price is influenced by the number of people buying and using it globally, and it can also be controlled by whales with massive amounts of money. Printing more fiat currency might help Bitcoin gain more value in the future, but ultimately, people must use and buy it and continue supporting it to achieve incredible goals in the near and long term.
El Salvador was the first country to adopt Bitcoin as an official currency, but if more countries support it in the future, we could see a significant increase in its value.
El Salvador was the first country to adopt Bitcoin as an official currency, but if more countries support it in the future, we could see a significant increase in its value.
With the printing of fiat money that is always in constant motion by the powers that be.
As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
Does that mean we should be embracing the printing of money?
Make all our money go totally out of value, so anyone holding BTC can get good value?
We don't want inflation so that the price of Bitcoin or cryptocurrencies increases, but we say that when there is inflation, Bitcoin might save your money from getting devalued if they are invested in Bitcoin, and these are two different things. Inflation in general doesn't only affect cryptocurrencies but it also affects the lives of the people living in that economy.As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
Does that mean we should be embracing the printing of money?
Make all our money go totally out of value, so anyone holding BTC can get good value?
When there is inflation, what you earn is barely enough for you to survive unless you are from the elite category that floats above it but those who are from the lower category will suffer from the high rates of goods and stuff that we buy for daily use.
What you're saying is how it should be but now how it always is. It would make sense for Bitcoin to grow when fiat is hit hard by inflation because we'd expect people to realize that their money is losing value and switch to something that can allow to rescue that value and maybe even make profit. However, when the news of high inflation of top fiat currencies spread at the end of last year, the panic spread onto Bitcoin and it wasn't doing well at all. Likewise, when inflation rate stabilized and people gained more confidence in the economy, Bitcoin started going up. I think that's because people largely see Bitcoin as an investment and feel comfortable investing when the economy is doing well. If they saw it as a safe haven, a way to save wealth, then Bitcoin would go up when inflation is high IMO.
Make all our money go totally out of value, so anyone holding BTC can get good value?
Does this make sense?
Have you ever thought that due to inflation, bitcoin will only preserve the purchasing power of folded money, but will not make you truly rich? If we get a big rise in inflation and you buy bitcoin now at 30k, and for example, in a year bitcoin will cost 300k, but with these 300k you can buy the same thing that you can buy today for 30k, will you consider yourself rich man? Bitcoin is able to keep your funds from inflation, which is already good in our time. Does this make sense?
I understand your point OP,but let's look at it from this corner. We need fiat currency for our daily spending, inflation causes the hike in price of commodity. High cost of commodity will affect you, if your income is stagnant. Therefore, it will affect your financial stability due to the depreciation of fiat currency.
Also in bitcoin too,it takes somedays before bitcoin price pumps or dumps. If you have 1btc today and you want to buy a house for $30000,and something came up,maybe you have a health challenge which makes you not to purchase the house. After a month due to inflation the price of the house increased to $31k and you bitcoin price is still at $30k,don't you see that inflation have affected the cost of the house. Bitcoin is a good store of value in the long run and also remember that we can't keep on spending the bitcoin that we have everyday,if not it isn't tackling any inflation problems. It is when you hold for long that you can use bitcoin to overcome inflation.
What happens to your bitcoin when bitcoin is in the bear market,will it be able to tackle inflation ? No,nobody like inflation because it does great harm to the economy and to human financial spending. Only mass adoption of bitcoin will pump bitcoin price
Also in bitcoin too,it takes somedays before bitcoin price pumps or dumps. If you have 1btc today and you want to buy a house for $30000,and something came up,maybe you have a health challenge which makes you not to purchase the house. After a month due to inflation the price of the house increased to $31k and you bitcoin price is still at $30k,don't you see that inflation have affected the cost of the house. Bitcoin is a good store of value in the long run and also remember that we can't keep on spending the bitcoin that we have everyday,if not it isn't tackling any inflation problems. It is when you hold for long that you can use bitcoin to overcome inflation.
What happens to your bitcoin when bitcoin is in the bear market,will it be able to tackle inflation ? No,nobody like inflation because it does great harm to the economy and to human financial spending. Only mass adoption of bitcoin will pump bitcoin price
Does that mean we should be embracing the printing of money?
Make all our money go totally out of value, so anyone holding BTC can get good value?
Does this make sense?
Make all our money go totally out of value, so anyone holding BTC can get good value?
Does this make sense?
That's not the point. The deflationary nature of bitcoin will work whether other currencies depreciate or not. What difference does it make if a bitcoin is worth one dollar or a million dollars, if at some current moment a bottle of beer will cost that million dollars? What matters is not the number of zeros in the fiat currency to bitcoin exchange rate, but how many real goods and services you can buy with bitcoin.
Definitely not, I agree with others. I mean if you keep wanting dollar (or any other fiat) go out of this world, that means you would be living a terrible life paying so much. Take it from someone who had %200 unofficial and at some point %100 or so official I think? Inflation in his nation, that's not something bitcoin can cover. First of all you would need ALL fiats to do that, just one or two would make those nations economically in trouble, secondly bitcoin is not accepted everywhere yet, so if you spend it, you can't get it back, once you invested and profited, that's it and you can't anymore. Whereas the trouble will continue to go on and you would not be making any profit at all while in trouble.
Therefore, you do not need to sell all bitcoin, if bitcoin is a long-term investment, then over time you will accumulate it and when it grows it will be a good amount that you do not need to spend right away. Use some small part of it for life, and let the rest of the investment continue to be in hold, just this will protect your money from inflation. We dn't know what will happen in the future, but we hope that the adoption will allow us to gain an advantage.
Isn't printing money sanctioned and always restricted by the government and can only be done when there's a dire need? Iirc, regular money printing is only done to replace destroyed currency? Which happens a lot of times.
As the fiat money devalues in value. The value of BTC and other cryptos goes up.
The value remains the same, the price would go up and I'd argue that altcoins' price is not going to go up because of inflation since they work based on pump and dumps and most of them are only traded against bitcoin not even against fiat to be affected by fiat value.Quote
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
No it is not a guarantee. The main reason for big rises will always be more adoption.Inflation will both directly and indirectly affect the price. Directly in the sense mentioned above (devaluation of fiat) and indirectly by pushing more people toward making an investment in bitcoin that doesn't suffer from the same flaws as fiat does.
Quote
Does that mean we should be embracing the printing of money?
No! Non-stop money printing ruins the economy of the country. Look at US.
As a result of inflation, the economic system of a country is seriously damaged. In all countries where inflation occurs, the prices of essential goods increase significantly. Many countries are already bankrupt due to inflation.
However, by inflation we mean the decrease in the value of one's own currency and the increase in the value of the dollar. What is the relationship between inflation and the increase in the value of Bitcoin?
Which country's inflation can you blame on the international currency. Because the value of money in those countries has decreased due to the increase in the value of the internationally accepted currency.
If bitcoin was a globally accepted international currency, you could blame bitcoin for the devaluation of paper money to increase the value of bitcoin. So I think Bitcoin price rise can never be responsible for inflation in any country.
However, by inflation we mean the decrease in the value of one's own currency and the increase in the value of the dollar. What is the relationship between inflation and the increase in the value of Bitcoin?
Which country's inflation can you blame on the international currency. Because the value of money in those countries has decreased due to the increase in the value of the internationally accepted currency.
If bitcoin was a globally accepted international currency, you could blame bitcoin for the devaluation of paper money to increase the value of bitcoin. So I think Bitcoin price rise can never be responsible for inflation in any country.
With the printing of fiat money that is always in constant motion by the powers that be.
As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
Governments don't ask for our acceptances to print more fiat currencies. They do it from their own decisions that match with their policies, strategies for their own benefits. We can not stop governments and central banks on this so we have to accept this fact and live in a world of inflation.As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
Of course inflation of fiat currencies and their decreasing purchasing power can force people to find better alternatives. One of the best alternatives for people to consider is Bitcoin with only 21M bitcoins in total supply. No miners can create more than 21M bitcoins after 2140 and this fact is interesting and attractive for investors who are tired and scared of fiat inflation.
However we don't need to see something like a bomb of inflation from fiat currencies globally. It won't be good for Bitcoin and our lives when a whole world is in economic apocalypse.
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Does that mean we should be embracing the printing of money?
As you have been told, printing is not necessarily good, especially if it is excessive.
The rise in the price of bitcoin, which is generally measured by the USD pair, has two components. The first is the rise in demand, because people realise the value of bitcoin and want to buy it. Given the limited supply of bitcoin, the price rises. Secondly, there is the devaluation of the dollar, which is of less interest to us. Because of the first factor, you are able to buy more and more things with the same amount of bitcoin, but not because of the second.
With the printing of fiat money that is always in constant motion by the powers that be.
As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
I think doing this is very inappropriate, it will not be easy to overthrow fiat money, because fiat money is under the responsibility of their respective countries, each country will definitely maintain the fiat money that applies in their country, so that it does not fall and continues to stand firmly.As the fiat money devalues in value. The value of BTC and other cryptos goes up.
So if the banks etc printing all fiat out of crazy numbers, then we should be in a guarantee of BTC going to over a million perhaps.
I am also a pro for bitcoin, but if I have to arrive
Toppling fiat money in favor of rising bitcoin prices, it feels like unkind and too extreme. Because even though fiat money drops very drastically downwards, then inflation occurs, is it possible that our lives will be more comfortable? I do not think so.
And actually there is no need to bother deliberately to roll over fiat money, for the sake of rising bitcoin prices, let alone until inflation occurs, things like this are not needed. Because I have confidence in bitcoin, even though I don't use the method described above, I believe bitcoin will continue to experience growth and development. As it is clear, bitcoin will definitely continue to be popular going forward, and lead to a new economic heyday.
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