Inflation is here Why is not Bitcoin Saving Us?

[24Kt]

It has saved me from many financial problems, I don't know about you. But to say that it's going to be the solution for all, I don't think that's possible. Bitcoin alone cannot save an entire problems of each individual.

What we have to do is to keep on investing and holding it. I'm still doing my routine and I have no complains about it. If people just look at the current ride, you'll not appreciate how far bitcoin has gone by now.

I can agree with that. It is not the responsibility of bitcoin to save us anyway. It is your own strategy how to take advantage of the opportunity and use your knowledge of crypto to optimize its features. It doesn't say that when you are holding bitcoin, you are exempted from inflation or other financial setbacks. It is still your own action how to make use of this knowledge to your advantage.

[martha1]

So the case of Inflation has finally hit the world head on.
Bitcoin was supposed to be the solution to all of this.
How come Bitcoin has not come to save us yet.?

Why are we not being able to hedge against the inflation and prevent this from happening.

Inflation is very ugly, yet no one is doing anything about it.

why is that?

As the previous weeks have showed us bitcoin is still not yet recognised as an asset equal to gold yet , when war broke out we saw a huge increase in commodities like gold and oil followed by a blood bath on the crypto market (btc took a fairly easy hit but still).

[Gyfts]

The case of inflation has always been present ever since the current fiat system is in place. But, is Bitcoin really the supposed solution to inflation? I don't think so. While Bitcoin's fixed supply is obviously a design which particularly protects the people from the continuous debasement of money due to abuse or indiscriminate printing and injection of new supply to the circulation, it was never a guarantee that the price value of Bitcoin will always move upward. After all, Bitcoin's price is solely determined by the market.

Also, you cannot expect Bitcoin to address the current problem of a different system just as you cannot expect the mechanic to address the problems faced by physicians. Are we a Bitcoin economy? No. Is our existing economic paradigm parallel to that of Bitcoin's standard? No. Are the world's population, companies, governments, and others living according to the principles of Bitcoin? No. We are living in a fiat world, so why are we surprised if we are facing fiat problems?

Bitcoin doesn't necessarily have to increase in price for it to counteract inflation. In any individual's financial repository, as long as they have an asset that doesn't, by design, lose 2 percent annually, their purchasing power can be maintained. It used to be gold that was tucked away, now it's crypto. With currency inflation, the purchasing power is guaranteed to decrease, but with Bitcoin that isn't a factor. Bitcoin is the solution and it doesn't necessarily take a price increase in order to appreciate the decentralization component. We might be living in a fiat world, but with the inflation rate for most currencies, not for long.

[Darker45]

~snip~

Bitcoin doesn't necessarily have to increase in price for it to counteract inflation. In any individual's financial repository, as long as they have an asset that doesn't, by design, lose 2 percent annually, their purchasing power can be maintained. It used to be gold that was tucked away, now it's crypto. With currency inflation, the purchasing power is guaranteed to decrease, but with Bitcoin that isn't a factor. Bitcoin is the solution and it doesn't necessarily take a price increase in order to appreciate the decentralization component. We might be living in a fiat world, but with the inflation rate for most currencies, not for long.

That is true, that Bitcoin is somehow designed to counter inflation. However, the bottom line of inflation is that the prices of goods and services are increasing. That the value of fiat is decreasing more or less 2% annually doesn't speak much about anything outside the rising prices. So Bitcoin not rising in price will not be able to counter inflation. It will still suffer from the effects of inflation.

This is primarily because right now, whether we like it or not, Bitcoin is not independent from fiat, or from the fiat economy in general. As a matter of fact, Bitcoin's price is in fiat. We do not provide goods and services prices in Bitcoin. We only convert their fiat prices to Bitcoin such that whenever their prices increase in fiat, and Bitcoin's price doesn't increase, their prices will also increase in Bitcoin.