Can Bitcoin Really Protect People from Inflation?

[Barrykbest]

I have been thinking about this, Inflation happens when the value of money drops and the cost of goods and services rises. People lose purchasing power, and their savings can buy less over time. Because Bitcoin has a limited supply of about only 21 million coins, many call it “digital gold” with this can it  act as a hedge against inflation?. The idea is that, unlike paper money which governments can print endlessly, Bitcoin cannot be inflated beyond its fixed supply.

In some countries with high inflation,  people already turn to Bitcoin as a store of value to protect their savings from local currency collapse. They can convert money to Bitcoin quickly and send it across borders without banks. But currently Bitcoin’s price itself is very volatile. While it has risen greatly over the long term, it also experiences deep drops in the short term. This makes it risky for people who need stability in their savings. In a bad market, the value of Bitcoin can fall even faster than inflation eats away at fiat money.
The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

[Lembo69]

Bitcoin is a digital currency and its supply is limited, so Bitcoin can maintain its value by controlling inflation. The market price increases over time, so Bitcoin is not affected by inflation.

In almost all countries of the world, some people invest in Bitcoin and they protect themselves from inflation.

However, there is no basis for Bitcoin to completely prevent inflation. It only helps to stay in line with the market price in the short term.

[Curious T]

If you want stability, where you don't want your money to grow but just the way it is, then stick to stablecoins. If you want short-term profit, then Bitcoin is not what you need. If you have money you want to use in a short while, and you don't want to take risks with it, then there is no need to convert it from fiat to bitcoin. You can leave it in fiat or convert it to a stable coin. Not like the stable coin is "stable", but compared to our naira, it is.

Bitcoin is for the long term. This doesn't mean you can't make a profit from Bitcoin in the short term, but it's usually not much. We've seen over the years that the price of bitcoin gets to over a long time is way higher than it does in the short term.

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

For Inflation to affect your savings, that means you've saved it for quite a long time, a year or two or more. So if we're using that time to determine, then as of right now, Bitcoin is stable enough to be a reliable protection.
Inflation doesn't just happen overnight. The value of a currency doesn't fall overnight; it declines gradually. So which do you think is better? Not keep your savings in bitcoin because it's too volatile, or keep your money in naira for over a year and watch it depreciate?

[She shining]

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Stability dey subjective and even gold nor really dey stable. So for future bitcoin go dey less volatile and more stable as many people dey enter. And E dey fight against inflation long term not short term. Na investment nor b sth wey Dem dey put carry one day. Inflation na long term issue so no need to dey judge ahn with short term volatility.

[Churchillvv]

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Do you think stability makes a currency hedge against inflation? Bitcoin is far better and will always because it’s the only currency that grows or appreciates in value unlike fiat. It’s volatile in short term but very appreciative in long term.

So bitcoin is not your shield against inflation but a hedge against it, instead of holding fiat that will value in a long run hold bitcoin instead but then keep some fiat for a short period.

One thing about inflation is that if inflation increases so much the profit bitcoin gives you for holding in the long run becomes equivalent to the days of not inflation and no bitcoin investment becomes, if a car would cost 1 million naira and inflation increases it to 5 million but the you had one million to buy the can but invested in bitcoin and bitcoin give you 4 million profit it will still afford the same car that it would have afforded at 1 million, so bitcoin can help you buy inflation can keep you in the same level with high amounts in your balance.

[Nathrixxx]

I have been thinking about this, Inflation happens when the value of money drops and the cost of goods and services rises. People lose purchasing power, and their savings can buy less over time.

This itself is a major reason why we keep on having an increasing adoption for the use of bitcoin, because right from the start, Satoshi has identified it as a serious challenge whereby taught of creating what will serve for the people as an alternative currency they could use in transacting business other than the fiat currency we have been used to, because it reduced in value with time because of the incidence of inflation, bitcoin was not just created, it was with a purpose for the people to live a financial freedom life.


 

[Proty]

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Bitcoin has proven over time as a store of value and also a hedge against inflation and it can act as good protection against inflation. No matter the market correction or price changes it can't really be compared to inflation. No matter how volatile bitcoin maybe, it has proven it self to be a potential coin and a good store of value far better than fiat which inflation can easily eat away.

[programmer3666]

let me become an economist for a moment  the thing is bitcoin sure have some kind of strong points during all this annoying inflation becuase it has a fixed supply! it can be sent anywhere and it is not controlled by governments. in countries where the local money has failed like 9ja, smart & sharp people just use bitcoin to protect their savings. but one thing to also note is the problem of price swings!! because bitcoin can grow faster than inflation in the long run but in the short term it can also crash quickly. that is why people kind of call it digital gold, but it is still not as stable as real gold. maybe as more people use it and the market grows just like it has being doing lately, the price will become more steadier. for now!! bitcoin can help against inflation, but i think it is still too risky to fully depend on.

[NurseHub]

Yes bitcoin for protect you, like you buy bitcoin now and you know say bitcoin go expensive pass like this, so if you get enough bitcoin e go become in due time and just like that you go fit afford weytin inflation go make cost, so indirectly bitcoin don save you from the situation of not affording it because of inflation.

If you save your money for bank, them go dey deduct some kind small money and if Nigeria government do anything about fuel e go expensive every thing for market go cost and because you get bitcoin and the price don grow over the years you fit buy anything without complain for the inflation.

[RockBell]

Bitcoin has proven over time as a store of value and also a hedge against inflation and it can act as good protection against inflation. No matter the market correction or price changes it can't really be compared to inflation. No matter how volatile bitcoin maybe, it has proven it self to be a potential coin and a good store of value far better than fiat which inflation can easily eat away.

The entire crypto currency is more better than saving money in your bank account because inflation will render it useless and bitcoin a store value that you can make profit from have changed a lot of things in the finance sector and the nature of Bitcoin is just to balance things in the market because the market can not even continue to go up, the algorithm at which the system is designed is actually very okay and it has a lot of opportunities depending on how it is been utilized when it goes low you buy.

It's actually a  good weapon fashioned against inflation only people with information will be able to make use of the opportunity to buy and you can always buy and hold because people are always thinking that how are they going to be able to hold. Because that is another thing that matters a lot in the crypto world is to hold for a very long time to make good profit.

[ColdLava40]

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Bitcoin isn't tied to any single country. It's a system designed to serve people and is intended to function both as an hedge against inflation and a store of vvalue.  most people think of a store of value as something that is stable or not volatile. Many investors seek a safe haven by moving from highly volatile assets to those that are less volatile because Bitcoin is highly volatile, it can't be called a stable asset.
But it's volatility isn't coming to an end. As more investors rush into the market, the market reacts to every one of their decisions. This dynamic will continue even after all Bitcoins have been mined.

[Makus]

I have been thinking about this, Inflation happens when the value of money drops and the cost of goods and services rises. People lose purchasing power, and their savings can buy less over time. Because Bitcoin has a limited supply of about only 21 million coins, many call it “digital gold” with this can it  act as a hedge against inflation?. The idea is that, unlike paper money which governments can print endlessly, Bitcoin cannot be inflated beyond its fixed supply.

In some countries with high inflation,  people already turn to Bitcoin as a store of value to protect their savings from local currency collapse. They can convert money to Bitcoin quickly and send it across borders without banks. But currently Bitcoin’s price itself is very volatile. While it has risen greatly over the long term, it also experiences deep drops in the short term. This makes it risky for people who need stability in their savings. In a bad market, the value of Bitcoin can fall even faster than inflation eats away at fiat money.
The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Indeed bitcoin can help save yourself from Fiat inflation probably from your local currency but there is also another fact to consider this is most beneficial to those who hold for long period of time unlike, those short term investors who would want to make use of their bitcoin to also pay bills when needed. At the time of paying the bill, the price of bitcoin could be down leading to loss of purchasing power and that is why i don't see bitcoin as profitable medium for making daily business transactions, but more like a asset for making huge transactions that don't get to happen often especially when talking about sending or selling, meaning it's to be held for long period of time.

[Cryptoprincess101]

The question is Do you think Bitcoin will ever become stable enough to truly act as a reliable protection against inflation?

Bitcoin cannot be stable, just as it increases in value overtime, the price might fall but the value remains. If you can hold bitcoin for a long time, it can protect your money from inflation but if you just invest with the idea of selling in the short term then i will say that it won't save your money from inflation. Only those who will hold their bitcoins for a long term will actually save it from inflation because by that time it must have added more in value unlike Fiats currency that are prone to suffer depreciation which can give birth to inflation.