Bitcoin Forum

Several articles have been written on how the government always print more money just to pump the Central currency due to inflations and this has always given Bitcoin and edge over them, we saw the market already heading back to $64,000 which is the highest Bitcoin price since its creation and this further goes to credit the fact that Bitcoin is an anti-inflation currency and is ahead of the central bank traditional paper currency or CBDC.

Some members would argue that bitcoin is not anti-inflationary currency. But with limited and ever-decreasing supply, it definitely gives bitcoin an edge over any traditional currencies that exists in the world. Government has to adjust the supply based on inflation and hence they are bound to print money to keep the supply ongoing on the basis of demand in the market.

Bitcoin is mainly an accumulation game. The more you accumulate, the brighter your future will be! If not already started, start now!

using things like anti inflation is exactly what scares the uninitiated. One way to look at it is if you have 100 ounces of tin which are worth 10 ounces of gold. When money is printed the underlying asset remains the same but quantity increases, so the 100 ounces of tin could increase from 100 pieces to 200 pieces but they are still 100 ounces of tin. That is what money is. When more money is printed everything else increases, including stock markets, but they are not deemed 'anti inflation'.
The price of btc should increase but there is going to be a wave of the stock market bulls and bears transiting to btc to manipulate prices so with that factor nobody can say what will happen.
On a long term view im bullish on btc on a short term trading perspective idk... the oldest satoshis i have are 2 years old and their performance pleases me when i look at them every few months.

Please read a few resources about Bitcoin supply and Central bank digital currency (CBDC). Next, look at the chronological chart of the purchasing power of US dollar. Lastly, make sure you read the topic about Equivalent network time. In that topic, you will get the estimated time to mine 1 BTC, now (since 2020 May halving till 2024 halving) that is about 48 seconds; then compares it to the estimated time about 12 mins 48 secs in 2032.

In 2032, 99.2% of total supply will be mined (see in Controlled supply)

• [GUIDE] All About Central Bank Digital Currency (CBDC) (https://bitcointalk.org/index.php?topic=5288713)
• Purchasing Power of the U.S. Dollar Over Time (https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/)
• The bullish case for Bitcoin (https://vijayboyapati.medium.com/the-bullish-case-for-bitcoin-6ecc8bdecc1). Because of the Lindy effect, it is safer to invest in Bitcoin past 2 years than in 2013 when price is very cheap.
• Controlled supply (https://en.bitcoin.it/wiki/Controlled_supply)
• Equivalent network time (https://bitcointalk.org/index.php?topic=5331087)

The poor people who know nothing about Bitcoin will remain poor still. Whether we agree to it or not, it's just how the world works. The world is just not going to work without slaves who will fork for their masters who have more. The poor who can only afford altcoins may still stand if they just keep a stash.

BTC halves every 4 years, it sure is anti-inflationary currency but more than that is that its total supply is just 21M, I don't know why anyone wouldn't believe it since its the coders who could say because it's opensource.

Price-wise we will always (until the end of time or end of unlimited supply fiat) see bitcoin price go up simply because even with a fixed value price goes up against fiat when it loses its value. Like anything else such as groceries!

Value-wise we will only see rise as long as the adoption continues, and the adoption increases as governments print more money and people flee inflationary fiat for deflationary bitcoin. But it won't continue happening forever. At some point (maybe after reaching $1mil+) we will see a fixed value for bitcoin.

The 21 million Bitcoin supply make it maintains a rate that can not exceed that amount and with constant adoption, the total supply gets lower and lower that makes its price to be stable and steadily increasingly high price due to its limited supply.

I think it should be attracting the right kind of money if we want the growth to be sustainable. The right kind of demand should come mostly from hard-earned money or hard-money, which will likely be used responsibly or for something very useful on the network.
This particular price increase is unique and well deserved though.

Apparently US is preparing to print a lot of paper cash. Rumours (https://www.businessinsider.com/trillion-dollar-coin-minted-within-hours-potential-emergency-decision-yellen-2021-10?utm_source=facebook.com&utm_campaign=sf-bi-main&utm_medium=social) have been going on saying they are on the verge of printing 31 million USD. I wouldn't be surprised at all. And I believe this has been having a direct implication on the bitcoin price.

Inflation's a global issue right now - supply chain issues are effecting major ports causing product shortages, and then there's the issue with central banks injecting too much cash into the money supply producing long term inflation upwards of 5 percent for some places. The US federal reserve in particular is on the hook for trillions in liabilities, and when they default on their debts, I'd expect Bitcoin to skyrocket as the world's largest currency falls. China is having some issues with their economy as well, but CNY I'd predict will last a bit longer than USD, but with global markets so intertwined, expect a domino effect.

You can pretty much sit and watch the collapse in real time, it's no longer predictions. You can see the price of BTC correlating with the inflation rates.

Your link makes no mention of $ 31,000,000 worth of money being manufactured.  Where are you quoting from?

As to minting a One Trillion Dollar coin - a more lasting impression in people's minds would be a one trillion dollar coin minted on a planchet (https://en.wikipedia.org/wiki/Planchet) made of Plutonium (https://en.wikipedia.org/wiki/Plutonium) or some other highly radioactive element.

This issue is as old as hills. We see daily posts that Fiat currency notes are published every day that's why bitcoin is the solution to control the inflation bla bla. The point is that financial system of the world is run by governments and they only accept fiat right now. We need fiat for our daily living. Crypto is still not everybody's game, since it's known among its community members that are not very large in number right now.

But doesn't this raises a question on the usage of bitcoin as a currency? If its value keeps on increasing this way how would one be able to spend it? A rational consumer would always tend to keep the currency rather than spending it because he is expecting its value to grow tomorrow. I think there is no way bitcoin can be used as a currency in the longer term, yes CBDC might be a good alternative if they don't contain the property of unlimited printing, otherwise, we need to look at some option that doesn't rise in value so much, especially in such a short term.

They're not doing that to pump their currency but they're doing that to temporarily solve their problem about debt but they know about the impact of its long term, and that's going to be adding more percentage to their country's inflation.
The edge of bitcoin and its advantage from these governments that are printing more money, they can use it to buy more bitcoin and that will make bitcoin pump. I remember the injected money last year and it has contributed to bitcoin's price a lot.

US is paying money to the people who stay at home. only a few people work this time and companies are trying to pay more for these people to work. the world got a lot crazier since some countries now are not accepting USD for America is destroying their own USD. hedging against this inflation made dollar holders buy BTC.

the BTC circulating on exchanges is also getting low because of regulations and withdrawal limits. when binance announced to only allow 0.06BTC, traders are getting out. new investors that want to buy have limited supply making the price head back to $64K, thanks to them.

If governments continue to print more and more money into circulation inducing rapid inflation, people will soon see the value of bitcoin as a hedge against the devaluation of their assets. People will buy bitcoin, hold it, and may never even convert it back to their original currency. They will see more utility in bitcoin than other assets, as bitcoin already proved that it can hold value and can go toe to toe against any other asset class. Hopefully, the rapid devaluation of currencies don’t happen too fast, or we may see yet another economic downfall for lots of countries.

The uprise of bitcoin evidences the lack of trust investors and common citizens have on governments as a whole nowadays. Nobody who has basic knowledge in finances rely their investmets in fiat currencies anymore, because they know on long run their patrimony is going to devaluate if they do this.

Fiat became a dangerous business and from now on, after the pandemic, we don't know how accelerated inflation is going to be due to the continuous interference governments have been doing on the financial system, in a desperate attempt to convince investors everything is under control and their respective countries are profitably safe for investments.

Politics has become the art of deceitfulness and spots that should be technical inside the governments are now totally occupied by politics, including ministries of economy. As they only worry about short-run goals (to win elections), they only have short-run solutions in mind, which are harmful futurely. The issues we see now are just the tip of the iceberg, but thankfuly bitcoin has been already identified as a possible solution.

If money is overflowing, its value is going to decrease. The purchasing power of money will suddenly weaken to the point that goods and services will become unaffordable. People will always find a way to preserve their money's worth.

One of the alternative ways to avoid the impact of inflation is to buy Bitcoin. As opposed to the infinite amount of money that could be printed, Bitcoin has a fixed supply. This means it is somehow protected against indiscriminate minting and consequently devaluation.

In other words, the gain that Bitcoin will have when governments are printing more and more money is that a certain percentage of this will probably go into Bitcoin. So more money means more money to buy Bitcoin. That's a rising demand on a limited commodity.

Bitcoin's price trend is not really affected by the expansionary policy that the central banks are adopting. The Bitcoin's price doesn't exactly track the inflation of fiat or the deflation of itself, even though that might still conform to the general trend. The general public isn't really concerned about that, or if fiat is becoming less valuable. It might be worth it to mention that printing money or adopting these policies isn't necessarily bad. From an economist POV, they are necessary to simulate the economy, especially now that we're coming out of a pandemic.

When we talk about inflation, it's generally the increase in prices of various commodities and which in turns decrease the value of the currency in that particular area. Bitcoins, the world's 8th most valuable asset now, have shown over the years how the market is not only unpredictable but predictions might be futile, the price is volatile at times and sometimes it's not always positive. Which inturns makes it easier to understand why it's not always a good concept to use it as a wall. It might be, certainly but we can never forget the volatile nature as well, plus whales and panic selling is still something that must be controlled. But few positive points we can't deny:
Limited supply
It gaining more acceptance everywhere
Which does give us some hope.

Unfortunately, the government does not see the benefit of bitcoin to them. If they can see that using bitcoin can prevent them from printing more money and preventing inflation sooner or later, they can integrate their financial system with blockchain.

People do not care about that because they will not complain to their government as long as they can still earn money from what they did. People think that is their government's job but once inflation almost happens, people will ask how the government works and needs to solve the problem.

guess it will take the government some time to come to terms with decentralized cryptocurrency such as bitcoin, this is because the government will not want to adopt what they can not control and this is the reason we now have central bank digital currency which is aimed at contending with Bitcoin.

Well, if you consider Bitcoin (high risk) as a anti-inflation currency... then you might want to re-consider your investment. Bitcoin has a good store of value, but it is not guaranteed and you would be making a big mistake to invest all your money into Bitcoin.. in the hope that it will continuously beat inflation as an investment.

The long-term "dream" of all Bitcoin supporters is that the spike cycle will repeat it self over the next years... but when you have bitcoins in the recovery cycle... it goes down very hard and it does not beat inflation.  :P

You are very right, the irony is the everyone in crypto world thinks that fiat is useless and crypto is the solution. While fiat has issues, crypto too has its owner issues of volatility, scalability, high fee etc.
One more important point to understand is that crypto can never be beneficial for governments, as they have zero control over the financial system in that case. How can they collect taxes n run affairs of the country ? Correct me if I m wrong.

They will fight back, of course, if you just follow what Gensler of SEC is doing, you'd realize that they'd go to war before they'd free all of the people from using crypto freely. It's not easy for crypto to face the challenges to become this mainstream.  

Right now, BTC yet not known to every man so even if the US prints more money to distribute to Americans, some of them will use the bills to buy BTC which is going to be good for the crypto economy. With where Bitcoin is heading which its price is retracing up to $64,000, investors will consider BTC as anti-inflation currency.

The fiat having inflation means that the worth of bitcoin is going to be increasing since the worth of bitcoin and other cryptocurrencies are in dollars. So if dollar should keep decreasing in value then that’s going to be more increase in the price of bitcoin, even without any much thing, bitcoin will still be increasing just because the fiat is losing value. And this is like a normal thing with fiat, they keep on losing value, which is why it very important to always make sure that you’re investing your money in a good asset that’s going to retain its value and keep increasing in future, and bitcoin is one of those good choice to make anytime.

I don't think the price is rising due to fiat overprinting. While inflation seems to be getting worse, it's not worse by much to encourage people to truly jump to Bitcoin. Also, I believe most Bitcoin users still don't see it as money, but instead hodl it as an investment or trade for profit. For these people, what happens with fiat doesn't really matter because fiat and Bitcoin aren't competitors here. Perhaps one of the factors of the price rising is El Salvador's Bitcoin adoption, and that would mean an increase of people who use Bitcoin as money. But even El Salvador didn't adopt it due to inflation of fiat, since their fiat is the USD.

The government just don't go ahead printing money as they want, there are stipulated protocols, agencies amd policies it entangled in, else printing excessive currency will cause a great eruption of economy instability, unemployment, inflation, decrease GDP, interest rate and affect the supply of money.

But for a successful balance between Government way of money print and the era of digital asset "bitcoin" we have a control system of the government fiat system called the "Monetary Authority" which ensure the adequacy of currency prints, control and effect the policy for central print. While Bitcoin on it own edge has the sacrifice of efforts required to mine it, else the richest country would have been the ones with the highest currency print. You can as well read further on  Monetary Authority  (https://en.m.wikipedia.org/wiki/Monetary_authority)

I absolutely agree with you that Bitcoin is ahead of all fiat money as they can be printed more and more, but Bitcoin is limited and this fact gives additional value to it. When something is limited, it means a limited supply, so the price will grow just because of this. So I think that Bitcoin is in a better position than  traditional paper currency or CBDC.

Whenever the government prints new money the supply will increase which results in the value loss for the currency so anything we can buy with that currency become expensive than before so the straight action of inflation will be increase in the value of cryptocurrencies.

There's nothing to gain from countries especially US trying to undermine its own currency system by printing more greenbacks. Bitcoin will preserve its value over time regardless if USD falls flat on its face tomorrow. Why? Because bitcoin has an ever-decreasing supply and a limited supply that you cannot add more to. Sure, price dumps makes it look bad and may even seem as if bitcoin's price undermines itself, but if you were to study bitcoin's trends ever since it was conceptualized and released to the public, it has only ever gone up. Of course, but printing more money would still put a dent to the value of the currency especially if there are still a lot of it in circulation. Inflation can only be regulated, but never completely removed from the system in the case for fiat currencies like the USD. This doesn't happen to bitcoin and other cryptocurrencies no matter how we argue because it is already programmed to be limited, which puts the usability in jeopardy but in the long run preserves the wealth of those who were able to secure theirs.

Currency printing by the central bank have been one of the major cause of inflation, when the central bank prints new bank notes their devalued the Central currency to Bitcoin that is why Bitcoin have gain constant increase in it value because it has a limited supply.

Bitcoin will not do anything, it's just that the money is less valuable. It will protect you from being squeezed.

The advantages of bitcoin are currently seen from a very limited amount so that the price increase will continue to occur, and this is very different from the central currency which is currently increasingly printed by the government and its value will weaken so that the price of goods is higher and this will fight the flow of bitcoin of course, for now many people who have glanced at bitcoin to be stored as a future asset but some still feel doubtful what is happening. It will happen later, and they seem to have no idea that bitcoin is a very limited amount of digital currency.

Consider bitcoin as an investment in your future and you'll be happy with your life.

The world rotates in a centralized market where corrupt people are in charge, that's the saddest part of centralization, but with bitcoin and crypto as a whole, everything will be transparent and we will its real value based on demand, what I'm only afraid of in the future is if the government will find crypto as a currency they can't beat if they'll play fair, instead, they'll ban it to protect their interest.

What are the articles that you are referring to? It would be better if you include few of them by linking them so that we may get more idea on your concerns. Simply, fiats will devalue over the time whereas bitcoin will gain more value. The reason must be supply of these two.

Bitcoin is expected to grow in exponential against time by assuming fiats will lost its buying power. Governments design fiat in a way to be losing so that people will not save it but will invest or spend whereas bitcoin was designed to be a digital gold which will gain value along with demand and also diminishing (towards zero) supply over the time.

The US and EU already said they were printing millions to counter the crisis caused by the pandemic. IMO the huge price increase in cryptos is intimately tied to this fact. Cryptos are inherently the best way to store value when facing government-imposed inflation. Cereal and fuel prices are surging and inflation may start to run wild. The best way you have against the constant devaluation of a country's official currency is Bitcoin. So, while an economical crisis of Global proportions is about to hit, the crypto industry will probably see the largest influx of users in its history.

if one country prints more money i think the value of bitcoin will rise significantly where , paper money is spent to buy bitcoin and as we know bitcoin has a limited supply , the law of the market the more demand the more expensive the price if one item is limited

When the government prints more money definitely people depends more on bitcoin and altcoins. It leads transformation in finance or currencies that's crypto coin explosion. They used depreciating asset (fiat currencies) to buy an appreciating asset ( crypto currencies). The bitcoin gives the golden ratio of capital appreciation and capital preservation on your wealth than any other investment option. Even gold supply inflates at 2 to 4 percent annually but bitcoin is a fixed limited supply asset capped at 21 million bitcoin by the year 2140. Sooner or later people will realise that to buy crypto is the way to reach financial liberty.

JP Morgan says bitcoin mainstream adoption is fueled by inflation fears.

Yes, this is correct. The more governments print paper money, the higher inflation rises. As the national currency depreciates rapidly at the same time, people are increasingly turning to decentralized cryptocurrency to keep their savings from inflation. The coronavirus pandemic has sharply exacerbated the negative processes in the economies of states and the rise in inflation, and from this the cryptocurrency only benefits in terms of price growth. In addition, states themselves began to pay more attention to blockchain technology and digital cryptocurrency, and this also has a positive effect on it.

Even the central bank digital currency is the same as the Fiat, all of them are all about inflation: as the government continues to print more paper money the value is going to decrease, and this will also affect the central bank digital currencies because they are tagged to the Fiat.

Right from time, Fiat has never been a better option to hold, if you are using fiats for your savings or as an investment then you are just going to be losing, because it’s of no use. Yes I do know fiat is important because we use it  on a daily, but it shouldn't be bad to try and invest in other things such as Bitcoin and other stocks like gold and the rest of them. This is very important if you would like to save your value in future.

There is no differences between the central bank digital currency and it faint paper money as their both have the same value and does not grow in value and also the central bank digital currency is not embedded in the blockchain so it transactions can be verify using the blockchain.

Yes I do agree that saving fiat is useless since it loses value over time. Its better to invest your fiat into something that increases its value over time like real estate, equity etc. There is risk factor involved in such investment that must be taken into account.  One more thing I wanna add is that concept of fiat has also find its place in crypto in the form of centralised currencies like xrp, bnb etc.