Bitcoin Forum

   I always wondered if inflation, in addition to all the bad things it brings to society, has some benefit that could be useful  for each of the people who are harmed by this type of case, and the truth is that it seems incredible to me that It comes only to cause anguish and destabilization. Or do you think it has some benefit? Because it seems to me that there is nothing good about this event attacking countries and the worst thing is that it is inevitable, everyone is or will be going through inflation, The only thing I see as good about it is that it forces people to look, for alternatives that could be useful and more profitable when it comes to future stability.

   Lately, these second options that I refer to deal with innovation focused on cryptocurrencies. Many businessmen are aware of this and apply it in their respective territories. To give an example, we have Spain, in a news story I read about this country in an article written in Spanish, is highlighted the increase in inflation and the interest that many retail investors have shown in focusing on the area of ​​​​technology and virtual currencies to cope with what is happening. This is what Laidler, a global markets strategist, comments on, providing his opinion on the situation that Spain is experiencing and the measures that retail investors have been taking, according to him:

For me it is a strategic decision, because in any case it is expected that at some point what will dominate is this type of asset and the one that will improve the quality of life of many.


SOURSE: https://es.cointelegraph.com/news/spanish-inflation-increased-and-investor-interest-is-in-the-technology-sector

We can always find some sort of silver lining out of any bad situation, but that doesn't mean they have any "benefit". Inflation is not an exception.

Statements like this are scary to me because they say "crypto" which means basically altcoins aka useless things that only get pumped and dumped. In short the altcoin market is a much worse version of the penny stocks market. "Assets" that get pumped a lot but they have no utility and can be created without any kind of cap or rules.
You can register your parents' garage as a company and sell penny stocks and make a profit just like you can create shitcoin after shitcoin out of the basement!

I wouldn't call this "innovation" or a "benefit", this is actually terrible because a large amount of money is going into a "casino" called the altcoin market where people make bets on random junk to get lucky and make some money.
This would have been benefit if people were looking for something that has actually had some innovation. That decreases the number in the list of altcoins from tens of thousands into one or two choices.

I don't think it's a motivation but rather a fear that the money that they've got will go down in value which ends up with them having less power to buy stuff that they can get, I think that it's the obvious thing that you can do when you're investing and your country is experiencing inflation, you got to make sure that you're going to maximize your investment by putting a lot of money into that investment so you can save as much money that you as you can against inflation. It's sad that there's nothing we can do about this as an individual that would affect the inflation in a positive way, I guess it's a matter of politics and how the society that you're in when it comes to inflation.

Inflation is a stealth tax, an annual theft of your purchasing power. Governments don’t care about you so the sooner you accept that the better. It is up to us to protect our money from these lizards. Bitcoin is an inflation slayer & if self custodied, only you control your funds. Don’t wait until it’s too late.

If I were given a chance to choose between not suffering at all trying to find an alternative livelihood just to survive or being stable all the while but still having the same need to look for possible second options, I would choose the latter.

I don’t think it’s a benefit that a lot of people were forced to go different ways trying to find a new job. Maybe for some ‘low employees’ inflation is a bad thing but not really the rich ones only having the capacity to create and improve their lives

As far as I'm concerned stable currencies are bad for inflation investing in them will have a bad effect on them with inflation. The government blames the increase in the prices of various things with the rise in inflation but sees no link between crypto and inflation. Although inflation puts pressure on fiat currency, it has no control over liquidity investment. Crypto is one of the tools to protect ourselves as a second alternative.

That's such a shallow reason to invest in crypto if you ask me but that's just me, I see crypto as our next step to financial freedom, at least for some individuals and inflation is such a thing that you should be worried at least at the bare minimum since you're mostly invested into crypto anyway. I do like the idea though that this is a motivation for some people to invest in a lot of cryptocurrency, with how rapidly the value of fiat is going down, it's no surprise that you don't want your money to be less valuable than it should be, we really need to find a way to start solving this issue with inflation if you ask me but in the meantime, do what you can to protect yourself from it.

No one benefits from the inflation but only those oligarchs that are always in favor of the increase of inflation yearly. Even with the slightest increase for their raw materials or products or services, they'd apply it as part of their measures to go along with inflation.

But are we going to benefit from it? Never.

It's just a line upwards and we'll never see a decrease in inflation. There will be some slow down but they'll never stop from increasing over time.

I think Bitcoin has proven itself during the pandemic, safe haven, a hedge for our wealth. So there's no need to be motivate oneself to invest in crypto. As long as you know what you are doing, and that you have a goal, i.e. preserved wealth, there is no better time than right now.

But the thing is that there are investors who might have the wrong mindset in the beginning, when they thought that BTC is a get rich scheme. And then they invest on meme coins and shit coins thinking that is it the easiest way to make more money which is not.

I agree and so there should be no motivation for us even if there is inflation. It's more of working our money to make more money attitude. So just imagine if you just let it sit on a bank for years. It will not even double or triple and your money is not going to worth something because of inflation.

But with crypto, or better yet Bitcoin, it's a good investment vehicle. And I think average joe knows that, and it could be the main reason, why crypto is slowly become one of the best assets to invest as there are more people realizing it's potential to give them more financial freedom in the future.

Shitcoins and scam coins cannot improve the quality of life, because they have no utility to offer, i mean something that people actually want to use for particular purposes, they are basically trading instruments that people use to gamble in the hope of making money. Having said that, even if you are looking for a crypto to use as hedge against inflation, it has to be Bitcoin that has an actual utility and not the many pump and dump coins that are in the market.

While Laidler encourages retail investors to start buying crypto he is pointing out the AI assets on stocks.

With inflation all over, no one is benefiting from all this but clearly, the gap between haves and have-nots is getting wider and this is the manifestation of the wealth distribution in the society where the middle class is almost over. What would be left are just rich and poor.

I can't identify any advantage of inflation because it reduces purchasing power and destroys savings. Seeking alternative sources of income is a burden and has some negative effects. It could lead to overworking, health and family problems. I would prefer to work a few hours and earn enough money to take care of my family and also have enough time to spend with my loved ones and do other activities.

It is common for people to invest in popular ventures which promise high returns. The most discussed investments currently are cryptocurrencies and artificial intelligence. People who don't know these sectors are even investing heavily so it is not a surprise to know that many people in Spain are investing in these sectors. I don't know much about altcoins or the AI field but I am sure that Bitcoin is a good inflation hedge.

additionally, crypto is not a temporary method
to get rich it is more than that it is our future

it is the next step to advancing and innovating
technology in our world in the next few decades
crypto will be used massively so it is better that we
get used to it now than later

Inflation can never be a good thing.  It is a curse for a country.  If inflation prevails in a country, no matter how much people invest, their standard of living is very poor.  Inflation can never be a blessing to any country or nation.  Fearing inflation, many people are investing money in Bitcoin. Is there any profit in it?  They have to struggle with that money to coordinate their daily life.  Inflation can never be good it is a curse for the people of a country.

I don't know if we can call it a benefit or not. Still, some businessmen, mostly in retail, tend to make more money when there is a sudden increase in the prices of goods in case they already have bought stocked a lot of those stuff in the past and since they have paid for them earlier, it wouldn't cost them any extra. Still, as the prices have increased due to inflation, they can sell them for a higher price giving them a higher profit margin.

Though I'm not sure if this works in every business, based on my knowledge, people who own stores where they sell groceries and stuff do get this benefit when there is high inflation. Some people in some countries would even keep some items hidden if that isn't easily available in the market so that they can sell them at a higher price after a few days. It's unethical, of course, but they barely care about that.  :)

Inflation is beneficial, as it stimulates the economy to grow, and it is what makes there a profit margin and an incentive for investment. If prices were fixed throughout the year, innovation and competition would be less, but inflation must be reasonable and controlled. Inflation of 1% to 2% is beneficial for the economy, but when it comes to talking about inflation, the majority They mean explosive inflation, where prices increase daily and inflation is more than 10% or more.
Hyperinflation is bad for the economy and leads to adverse results, especially for the middle and poor classes.

It is just like a scary dream if one is totally thinking of depending on the crypto space as most of them are just investing in the altcoin which works on pumping and dumping schemes. Bitcoin has always been the king of all cryptocurrency and today it is the kind of all digital currencies trading in the market. Although it is good to take risks with very little amount of investing in altcoin but higher priority should always be Bitcoin and I know we all facing the bad era of inflation where we all are looking for the golden opportunity to fulfill our daily, monthly bases need.

Although it is very rare to find this kind of opportunity in this era but the era of online makes it much easier for one to make money like one can make money from YouTube, Blogging Websites, and Freelancing, by launching one store on eBay, or Amazon. These platforms really can make one person wealthy and financially free so one should focus on getting multi-skills in different fields all required is our focus and we should leave or laziness behid and keep learing the skill all the time.

Let's face it, the main driver is actually making huge money in such a short span of time. Only a few people might even think of using cryptocurrencies as a hedge against inflation as most are focused on the profits in fiat. Even I know that I'm doing this for the profit, as it's way easier to acquire, store, manage, and sell when I get my desired price. Those who think that it's a hedge against inflation are people who have lots of money and assets to keep, and that is, IMO, a realistic motivation for them to hold bitcoins and cryptocurrencies.

We need to pick a good asset for our investment. No inflation in that asset, we have Bitcoin with only 21 million bitcoins and it is inflationary but we know there is a limit at 21 millions, not more.

The value of Bitcoin comes from many things, its limited supply, its use cases and adoption. Its value can be supported by loss, decrease of purchasing power of US. dollar and other fiat currencies.

I don't expect to see Bitcoin hits $1M next month or next year, because it will only happen if something really bad like nightmare happens with US. dollar, global economies.

I believe in Bitcoin but only hope to see its value increases naturally with time, not hit $1M after one night because if it happens after one night, there will be a terrible black swan event globally.

Purchasing Power of the U.S. Dollar Over Tim (https://www.visualcapitalist.com/purchasing-power-of-the-u-s-dollar-over-time/)
Balaji Srinivasan Explains $1M Bitcoin Bet Rationale, Says Could Take Longer Than 90 Days (https://www.coindesk.com/markets/2023/04/28/balaji-srinivasan-explains-1m-bitcoin-bet-rationale-says-could-take-90-months-not-90-days/). This joke is non sense.

In a sense, inflation is good because it forces people to spend. If people spend, commerce thrives, and the economy moves. There is no point keeping something when it rots over time. That's how fiat is. It's like a perishable food.

Second, inflation is good for those who borrow money. As money is losing value over time, what you borrow today is much more valuable than what you will pay in the future.

I'm not saying inflation is entirely good, though. And it seems that the tide is turning as far as appreciating inflation is concerned. There seems to be a paradigm shift and Bitcoin has probably played a vital role.

For a regular citizen inflation holds no advantage to them, since the price of everything goes up while their income remains stagnant or at best it goes up, but at a speed that is slower than the inflation.

But if that is the case then why inflation is a problem all over the world? Because inflation is great for governments, governments can print all the money they want, and even better, they get to spend that money before the prices go up as that money has not entered the economy yet, also governments can tax your income and your wealth with it and steal from you in this way, so it should not be surprising why inflation is so strongly associated with fiat money and it will keep on existing as long as fiat remains too.

Thanks for putting it so simply.

I don't think the basic premise that 'some' inflation is needed is going to change anytime soon. Like you said, if there was zero inflation, there would be no incentive to invest. People with generational wealth would simply sit over it and earn interest because they wouldn't have to care about beating inflation.

It is a vital part of the macroeconomic engine of our world. Its a necessary evil and like all things, balance is crucial.

Japan is often the cautionary tale of what happens when a wealthy, hard working but ageing population goes into the state where there is zero or no inflation. The Govt provides stable. low-paying jobs to a bunch of people, rest of the society breaks its back in a cycle of low-paying temporary or contractual jobs and 'work' becomes a big part of your being. In my opinion, you can't have the spirit of risk-taking and entrepreneurship that defines capitalism, without some level of inflation.

STOP!

Through inflation, you are being defrauded by the Cabal. All throughout our lives, we work for our salaries, and we are paid the same amount with probably some salary raise happening in between before retirement. BUT the money you save n your bank account is worth LESS, and the Cabal's money-printer will print more and more making your money worth less and less.

The only people that actually gain something from that are those who own hard assets.

inflation forces people to think about alternative and thats true, it also kind of forcing people into finding new innovation through funding as an investment we all know how many moeny can be just sitting around if not for inflation these money are just probably will never get invested so I agree with some people that says it forces people to spend, I guess inflation is designed to be just that even though it also means that our money value is plummeting due to exactly that.

so far i can't see anything that benefits the ordinary people like us from this inflation other than just making our salary decrease and decrease every day not in literal terms but so far when everything increasing in price it just means we buy less. but we also need to know that investment that have apy of more than 10% which means we gonna be safe from inflation usually also carries risk that can cause lose of money, for example stocks, the one with massive market capital as valuation of the stock doesn't necessarily means its gonna be safe haven for investment sometime it could drop so much just within a year.

We saw it during pandemic when the USA. and many countries massively printed new money to their fiat currency supplies. People in the USA. and many other countries, received money from government drops and spent it to invest in stocks that helped the S&P500, NASDAQ to increase a lot during two years.

But in a long term, inflation makes economy weaker and growth from inflation is not sustainable. Governments and central banks globally try to reduce severity of inflation by avoiding to use Recession, but replace it with "Technical Recession". We must know, when they say about Technical Recession, Recession already existed.

Why are you talking about inflation as if it's some kind of natural disaster?
Inflation is caused by the money printing machines of the big central banks. Inflation can be stopped, if the central banks stop the money printing and raise the low interest rates. The problem is that this will cause a long term recession and many people will lose their jobs. The modern day economy is "addicted to inflation" to some extent. And yes, inflation is the main reason why Bitcoin/crypto was created. The other main reason are the commercial banks stealing money from their customers. Imagine if inflation was really low 15 years ago and it stayed low for all those years. Would Bitcoin become so popular? I don't think so.

You're right, inflation can act as a catalyst. When traditional financial systems struggle to maintain value, people naturally seek alternatives. This often leads to innovation and the exploration of new financial solutions, like cryptocurrencies.

However, it's important to remember that cryptocurrency investments come with inherent risks. Security concerns, potential regulatory changes, and extreme market volatility are all significant factors to consider before investing. While cryptocurrencies may hold promise, it's still too early to say definitively whether they'll revolutionize finance and become a widespread solution for improving financial well-being.

And banks wouldn't offer interest rate if you hand them your money, actually the banks will charge some fees in order to survive. The government know people wouldn't want to lose money, instead they create this system where people didn't feel they lose money and the banks can make more money by offer people to lend. Without printing new money, the banks can't lend.

Fortunately education is become wide and people now already realize if banks and fiat are the real scams.

Inflation creates bad times for people. During bad times, people are always willing to work more and are trying to find alternatives, including type of job, type of investment and etc. During inflation it's logical if someone googles how to earn money, accidentally will hear about Bitcoin and then decides to invest in it. So I think that inflation will motivate many people to invest in cryptocurrencies but it's difficult to say whether they'll get financial profit or not because many people start panicking if something goes wrong with bitcoin's price and they sell immediately, they can't hold it. So there is a high chance that many people will invest but will not profit Btw Bitcoin ETFs will be a huge help for many people to have an easy access to Bitcoin investment.

Banks used to perform a useful function in our society, by allowing those that had excess money to keep their money safe for them, while the banks lent that money to those that were in need of it for a fee, this way everyone won and this made the economy to move forward, but banks created fractional reserve banking, raised the interest rates for their loans and stopped giving any returns to those that deposited their money with them, so they became the only winners and made a lot of money, but because of this, people are slowly losing the trust they had on banks and they are looking for alternatives to save their money.

Yes, in my opinion, there are two positive and negative sides to anything, so it is very possible that inflation has a positive side, as you mentioned, as people began searching for an alternative to inflated paper currencies.

Due to inflation, the weak foundations of the old monetary system began to be exposed, which made many governments consider abandoning the old approach and looking for a system built on stronger foundations that does not contain all these weaknesses.

Of course, the best alternative they can find is Bitcoin in particular and strong cryptocurrencies in general. Bitcoin, as a store of value and a hedge against inflation, has become the most strategic option for large companies and institutions, and perhaps for governments later.

Bitcoin is one of the best performing asset and that's why it is ideal for everyone to invest and get into crypto. But when people talk about the term 'crypto', they're suggesting a lot of crypto and goes into memecoins because they're convinced that the gain is higher than of Bitcoin.

But the hype can be gone on an instant and you don't know how long you're going to see that upon buying those suggested meme coins

As for Bitcoin, you get the safe way of investing on this very volatile market and you get the top and most loved cryptocurrency and you're for long term and stability.

Does inflation attract people to invest in cryptocurrency really when the fund is not there to spend.
If you still have some spear money to spend and invest in cryptocurrency the. You are not so affected by inflation.
Thise that are affected are not able to pay their bills due to many reasons they would not want to explain expect you understand what's happening currently. We can always make money in crypto which is very correct but where is the fund to invest? This one one of the problem many are facing these days.

We all hope for natural growth which is going to be solid and will stick around. But reaching a certain price in a certain time frame doesn't make the rise unnatural. Keep in mind that we have had many massive rises in short periods.
$1 million price may look big but percentage-wise this rise to a million is only about 1300% rise, we had 10 times that rise in last complete cycle ($150 to $20000 which is 13000%).
Getting there in lets say 1-2 years is quite reasonable.

Every citizen feels how negative inflation can be. While it is true that some industries can profit to some degree from slightly higher prices because they can also increase prices along with the market, our wages tend to lag behind increases This. It's frustrating and unfair when prices keep rising with no end in sight, making it feel as if everything around is going up for no apparent reason. The decline also won't erase the problem it's causing for our wallets.

You know, honestly, if I look at it from another side, in the eyes of most people, inflation is not good for every person. But from another angle, it's like inflation is actually helping us so that we can release the full potential that we have to actually survive in life.

Cryptocurrency, or bitcoin, is just one of the answers to the problems we face in life, but there are actually many solutions, not just one. It's just because I'm here in the field of crypto space.

For most people, inflation is a negative phenomenon, especially if their monthly income remains the same as before inflation. This leads to the fact that the average person can no longer meet his personal life needs and has to start looking for other sources of income, which means that he has to work more, which means that he is more exposed to physical and mental efforts. However, inflation does not affect everyone in the same way, because the rich are still rich and have far more money than they need.


People will ride any wave if it makes sense to them at a given moment, and cryptocurrencies are currently a hot topic not only in Spain but everywhere in the world. If the price of BTC was half as much and nothing significant was happening, few would decide on such an investment.

Therefore, I think that inflation is not the main driver (motivator) for investing in cryptocurrencies, but it is about the fact that the expectations for this and the next year are extremely high, and this optimism spreads like a virus among all those who think that they can make easy money this way.

Inflation exists and fiat will gradually get devalued with time making our savings less valued from what they are today. But that does not necessarily mean that inflation is always bad. On the other hand deflation has its pros and cons too, you can buy bitcoin today but how can you sell it to buy what you need if you are only looking to increase its price (through deflation) in the long run?

These things need to be balanced to be maintain the economy. From our perspective, keep collecting bitcoin and saving fiat, we dont know what the future holds for anybody.

Definitely,inflation is one of the highest barrier to a good and comfortable lifestyle.The challenges that comes with inflation  is relatively difficult to accommodate income,personal well-being,and affordability to improve a well deserved lifestyle and human experience in this generation.

Inflation is naturally accompanied with negativity,it ultimately reduces the purchasing power of whatever amount of money that someone has saved or invested,reduces economic growth and development,and enhances many other negative effects on the economy or society.

To keep something is not wrong but we must only use them before their expiration dates. Fiat is not a bad thing before because the inflation before is only small but it only grow and there something or someone that is responsible for that. I already heard the second thing that you said there. It must be one of the benefits of borrowing that some people fails to see and this makes them think borrowing money is a negative thing. Same goes with this inflation.

Hopefully you are right that people are now realizing it but it may not be really possible if without the help of Bitcoin and cryptos. This is one of the major eye-openers for the people to understand how money truly works.

It’s always like a restart where those who are able to see the opportunity can utilize it for their own benefits. I think that’s the way the bear market is being looked at. Price dumps and it isn’t pleasing but, it’s also offers a buying opportunity and that’s how it works.

That’s some assertion that Bitcoin shouldn’t really be associated with as, it would make the whole idea behind it worthless like the millions of altcoins have proven to be over time. No wonder most users do try to get a clear distinction between Bitcoin and the many alternatives out there.

Fiat money is a scam no matter how I look at it, when gold was used as a currency, at least you knew that gold held some value by itself, but then paper money backed by gold was introduced that required to trust a central bank, a trust they broke and now we have money that is not backed by anything, so just because some fiat is printed slowly compared to others, at least in my eyes this does not make it less than a scam, as one of the characteristics that money was supposed to have was to be a store of value, and it is obvious that fiat is an awful store of value, which is why we have to look for other assets we can buy with our fiat to perform this function.

It’s beneficial for businessmen and the likes but not for the common people. Of course this forces us to find sources of income but even with multiple sources of income, the cost of living is simply too high that they still can’t afford to pay for their own bills.

Only the rich become richer during inflation.