Stop Inflation With Crypto? How?

[worldtraveller321]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

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[adaseb]

In Venuzuela the situation is different because there is hyper inflation there. In western countries the inflation is never that high.

The issue with selling fiat and buying Bitcoin is that bitcoins value might decrease more than the actual inflation and it wouldn't help most people in that situation.

Most people get wage increases for the inflation maybe and things might get a little more expensive by a percentage or 2, but if someone puts all their money in Bitcoin to hedge against inflation and ends up losing 50% of it due to a BTC crash then it won't help them.

[worldtraveller321]

but this is only the case of using BTC as an investment to get more FIAT.
I am more talking about using BTC as a currency

[blckhawk]

You cannot stop monetary inflation. Fiat or cryptocurrencies, they both experience inflation since there are new bitcoins created on intervals, the supply increases and therefore would create inflationary effect when demand does not keep up with the supply. You can, though, slow down the creation but you cannot remove the supply already in circulation to create deflation. Crypto won't solve poverty just like that. You cannot evade inflation. Another thing to note is the volatility of crypto-market that won't benefit at all times.

[Darker45]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

The switch will not be as abrupt as what happened to Venezuela. It will take time. First and foremost, the price of Bitcoin itself has to reach a certain degree of stability, Bitcoin transaction fees as well as confirmation time will have to adjust as well, and then stores and shops will start accepting BTC payment, and then the government will issue regulatory policies one after another, BTC owners themselves will stop hoarding it and start spending it the way it should be, and so on. I'm speaking of Bitcoin as crypto here because there is no other that can replace it in terms of acceptance.

I would say that the Venezuelan situation is isolated. The country does not seem to have a working system anymore except the one that is inside the head of Maduro and it is rotten.

[dothebeats]

Inflationary currencies promotes spending whereas deflationary promotes hoarding over time due to appreciation in value. It’s the banks and financial entities’ faults why fiat spun out of control for the past decades. Their financial policies simply didn’t help all economies grow, just like what happened in Venezuela and the likes. It would take a lot before governments accept a crypto-only system where they have little control to and adjustments cannot be made to better suit a country’s current economic situation.

Switching over into something that not everyone understands is a disaster waiting to happen, IMO, and crypto isn’t the solution alone.

[meanwords]

It's not like Bitcoin is the only crypto created, you can also try by switching to a stablecoin like GOLD which the price rarely decrease and is always in-demand. Although you could buy physical gold, crypto is still the way to go as transactions can be hidden and is digital. Also, you won't have to worry about the price decreasing just like Bitcoin and other cryptocurrencies out there. For sure, gold will be the safe haven of the investors in this situation.

[TGD]

but this is only the case of using BTC as an investment to get more FIAT.
I am more talking about using BTC as a currency

It's very hard to implement crypto to replace fiat. As crypto is decentralized and have a limited supply, This will be in disadvantage for the government since they can't print there own money in there country.
Many prominent people are behind fiat like Rothschild and many more that enjoying the benefits of paper money that backed by air. Imagine america have tons of debt then if BTC is the new Fiat then they will never pay there debt since they can't create BTC for themselves. When this happened, It might cause a conflict to have a world war due to shortage of BTC. Just my assumption.

[pooya87]

with crypto? absolutely not because the sheer number of different cryptocurrencies is more than inflationary as there is more and more being created every day.

with bitcoin? probably not. mainly because bitcoin first has to replace fiat and be used everywhere to take the first step to changing anything about inflation and that first step can not be taken.

[mk4]

Don't really expect a 'switch' in the near future. While I'm extremely bullish on bitcoin as well as most people here, it simply isn't ready to be a currency yet. Bitcoin needs more development, and needs a lot more liquidity for it to be 'stable' enough price-wise to be a decent day-to-day currency. It's going to take time. For now, bitcoin will just be a niche currency for us online nerds, and as a sort of "band-aid solution" to those people in countries who's local currency is a lot worse than bitcoin in terms of price volatility(daily almost guaranteed value drops with the Venezuelan Bolivar).

[Mandoy]

It cannot be helped but it is really hard to push cryptocurrency to become the official legal tender. There will be many oppositions in the government, banking and financial sector and among the masses. If the government will not make measures and will take the initiative to use cryptocurrency instead of money then we will hit the dead end. The only thing that’s left is to let a situation where in a monetary inflation and economic breakdown to occur for people to realize that it is much better to shift into cryptocurrency.

[joniboini]

You can stop inflation even without crypto, as long as you can argue and push your government to stop printing new money. The problem is, you'll likely fail before you can do that. Inflation per se is not as bad as you thought, even some crypto use inflation in their early days as an incentive for people to participate in their network. It will be a problem when it's happening too much.

What is more dangerous from fiat is because it's not sound, some group of people can easily erase the validity. In one night, your 1 million dollars might not worth anything if the government decides to change the currency.

[th3nolo]

You don't need to overstate, I think it's best to have a plan BTC in case the world economy fails as happened in 2008.

In western countries, it is very rare to have cases of hyperinflation but it is always great to have a letter up your sleeve.

all you need to do is to stack sats, one of the best approaches.

[GreatArkansas]

Slowly adoption would do better. I don't even know if the reason to stop inflation is what on the Bitcoin, like we have limited supply and have it's block halving, so it that happen, we can really expect the price of Bitcoin would go higher since it's limited supply.
I think we can achieve these things once majority understand bitcoin and start to use it for daily transactions not only for investment or use it even in some illegal things.

[DaveWave]

Inflation is normal but a good government should always have plans that can effectively neutralize it.

Crypto currencies are just money the same with fiats so it cannot stop the prices from falling. The only thing crypto currencies are good is that its value isn't inclined to any countries and its economic performances. But if we can see, most altcoins didn't do well in the previous year up to now which is worse than fiats and its inflations.
   

[Kyraishi]

In Venuzuela the situation is different because there is hyper inflation there. In western countries the inflation is never that high.

The issue with selling fiat and buying Bitcoin is that bitcoins value might decrease more than the actual inflation and it wouldn't help most people in that situation.

Most people get wage increases for the inflation maybe and things might get a little more expensive by a percentage or 2, but if someone puts all their money in Bitcoin to hedge against inflation and ends up losing 50% of it due to a BTC crash then it won't help them.

Agreed, don't compare Venezuela and other countries that have hyper inflation, it isn't the same as regular countries that only have around a 1-2 percent inflation rate.

No one is able to neutralize inflation, it's impossible for it to not exist because a countries bank will always need to print more notes for the people.

As for crypto-currencies, we see this with currencies that have a limited supplys, where inflation is just not an issue at all.

[CryptoBry]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

At least in the next 10 years, I see no chance for the global economy (or at least the big economies) to be switching from the fiat money to cryptocurrency or Bitcoin. And actually, there is no need for that in the same way that not all are into gold (considered as the most stable and popular asset). We just be contented that Bitcoin is doing good and slowly accepted alongside major fiat currencies because in my view we are not actually prepared yet to have one single currency the whole world will use. Just look at the complexity which Euro nations are facing because of its one single Euro currency, we don't want that problems to surface with Bitcoin.

Now, as far as inflation is concern, I think that nothing can ever stop this happening as inflation can affect all economies no matter what type one's economy is. Prices have this ability to rise even if there will be controls in place...time will eventually come when the dam could not contain the bursting energy inside. So what we have is controlled inflation with the use of many available intervention tools that the state has on its hands.

Can Bitcoin stop inflation? Many are assuming that it can since as an asset Bitcoin is deflationary but that is assuming that it got a good price (just like what we have today) otherwise it can be the opposite. With Bitcoin limited in supplies and definitely nothing more than 21 million can be minted, it is assumed that its value vis-à-vis the dollar (or any fiat for that matter) will be increasing and because of that you can buy more and not less (less as the reality with the fiat money as central banks keep on printing more).

Now, these are the complex situations, concerns and ideas on how Bitcoin will behave if it can be a global currency really in use by billions and most of our thoughts can just be theoretical as we can only learn what happened after something has already occurred.

[ChrisPop]

People need to be educated regarding the effects of inflation. The vast majority are not even aware that their purchasing power drops down day after day, year after year. In my opinion the change to crypto would happen onlu gradually(slowly) through awareness/educational campaigns or by a major economic shock like the precarious situation in Venezuela.

[Kakmakr]

Inflation on Fiat currencies is just one of the methods that governments use to "balance" their economy. You have to look at the basket of goods that are used to measure inflation to see how they determine the inflation to see how they manipulate it.

Crypto currencies like Bitcoin can help you to protect you against the impact of inflation, if it can retain it's store of value characteristics. In the long-term Bitcoin has shown that it beats inflation, so it is a good method to protect the value of your wealth against inflation. 

[LogitechMouse]

People need to be educated regarding the effects of inflation. The vast majority are not even aware that their purchasing power drops down day after day, year after year.

In my country, I believe that many people aren't aware of it because of lack of financial management. What I want to happen here in our country is that there are some people who will teach to different people even the basics of money like this inflation etc. but they only teaches things that they don't need in the future. Its the hard truth and our current education system isn't helping the people especially in money things.

[figmentofmyass]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

it can't prevent poverty. for the people who hold bitcoins, the effects of fiat inflation might be mitigated, but the underlying causes of poverty go much deeper than monetary debasement.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

maybe so. people are surprisingly trustful of their national currencies. and establishing bitcoin as a national currency or legal tender would only be done as a last resort. governments won't give up their monetary sovereignty easily.

[adeandro]

I don't think crypto can really help stop inflation, of course, unless the whole fiat is replaced with crypto

[mk4]

it can't prevent poverty. for the people who hold bitcoins, the effects of fiat inflation might be mitigated, but the underlying causes of poverty go much deeper than monetary debasement.

Exactly. This seems to be an unexpectedly common misconception of a lot of people in the cryptocurrency space. Bitcoin doesn't exist to prevent poverty and to move some of the wealth from the rich to the poor. In a finance perspective, bitcoin exists not to make people rich, bitcoin exists to(supposedly in the future) be a hedge against fiat money that accrues inflation every year. Basically:

[AicecreaME]

Your thoughts on this. with the recent situation, we face here in western countries. Like here in Canada. USA, Australia, Europe ,etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

We are not that desperate for bitcoin worldwide adaptation to end our lives in poverty, I am happy with both fiat and cryptocurrency benefitting me and helping me to my daily needs. Cryptocurrency can't end this poverty alone, we need the Government, the Government will provide everything we need for bitcoin mass adaptation to be successful. They could give poor people gadgets and put public wifi for their daily usage of cryptocurrency activity, such as trading, mining and etc.

This is going to be a big project for Governments, though I don't know what it is they are lacking to realize that cryptocurrency needs to be adopted by everyone for our own development.

[Wintersoldier]

People need to be educated regarding the effects of inflation. The vast majority are not even aware that their purchasing power drops down day after day, year after year.

In my country, I believe that many people aren't aware of it because of lack of financial management. What I want to happen here in our country is that there are some people who will teach to different people even the basics of money like this inflation etc. but they only teaches things that they don't need in the future. Its the hard truth and our current education system isn't helping the people especially in money things.

Basically, if a person takes a degree in economy, they will surely understand what inflation means, and if that person will engage him/herself in crypto, he/she will surely figure out what crypto inflation means as well. And even normal or simple individual can definitely study what cryptocurrency inflation is, in relation to the normal infaltion that is happening in the physical world.

[sehoon]

Surely, bitcoin can help a lot when it comes to people's financial problems but when we talk about inflation, I think it is a completely different thing. Bitcoin can't do much when we are already talking about economics. If countries like Venezuela want to improve their economy, they must rely on their economists to solve the problem.

[mk4]

Surely, bitcoin can help a lot when it comes to people's financial problems but when we talk about inflation, I think it is a completely different thing. Bitcoin can't do much when we are already talking about economics. If countries like Venezuela want to improve their economy, they must rely on their economists to solve the problem.

Can you expound more on this? How are economists going to solve the problem? Shouldn't it depend on the central banks? "Bitcoin can't do much when we are already talking about economics". Remember that Bitcoin was created after the financial crisis of 2008. So, the goal is definitely to counter inflation.

[teosanru]

Actually Inflation is a blessing in disguise. Inflation creates increased supply of money in the Economy and thus creating economic growth too. People agree that $1 had much more purchasing power 50 years ago and now we can purchase a lot less things with $1. But what they don't see is how the incomes around the country too have increased at a similar rate. Also the standard of living too of people have increased. The HDI too has increased. These actually are parameters of a happy life. Crypto may not have this advantage as they could lead us into a Deflationary spiral.

[Artemis3]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

Tell you something, people here have yet to trash fiat for crypto. Everyday you see more people using USD instead. Ironic isn't? There is some news here and there about some shop accepting crypto, or even a new ATM installed in the same shop, but its very rare and not what you would expect.

I think there is simply not enough knowledge about Bitcoin here.

Bitcoin is a deflationary coin, of course you can use it to prevent your money from losing value, and many people are using localbitcoins to buy (or sell), but for actual purchasing we still revert back to fiat, which is a shame.

If it is so hard HERE for the "switch", i can't imagine how it is in countries with such "perfect" fiat that barely lose 2% yearly. People seem more worried about the natural fluctuations (which are a sign of freedom, a strength rather than weakness) than the prospect of having preserved or even increased (because of fiat inflation) their purchasing power overtime.

It is funny/tragic, we do all ended in poverty here, and yet, there is no "mass" acceptance of crypto. One thing does not lead to the other, something else is needed. Maybe if the entire world economy collapsed (if only 10% of all the money is simultaneously withdrawn from the banks, it would trigger it). But by then it would be too late as all fiats would lose value simultaneously and people would simply not have time to move into crypto.

Sadly only those who have moved or at least diversified a part of their savings into Bitcoin, would survive such a collapse. No matter how much you would want everyone to get a clue, there are some (too many) that would fall behind. This is not Bitcoin fault.

From experience i tell you, once your fiat crashes, only then the "masses" get that they need to change their worthless money into something else, but then its too late and can't do nothing with their now worthless money. Its sad, but those that need it less, have higher chances to get into it than those that desperately need it more.

Unfortunately back when i didn't "need it", i didn't buy. Now i need it, but my worthless money can't buy but a few satoshis a month. Catch 22.

[febriyana]

I think cryptocurrency is one of answer to stop inflation.
Inflation created because Federal Reserve always create banknotes. So the supply is more than demand. That is make fiat value decreased, goods become more expensive than before.
In cryptocurrency where have limited supply and to get more crypto must need PoS or Pow. That is no reason to make inflation.
But for poverty side there will still there, anything we do in currency not effect poor people become rich.
They are poor because don't want learn new thing, also lazy...

[Dreamr]

I think the only way to stop inflation is by moving your money from fiat to bitcoin. the bitcoin value is growing exponentially due to scarcity and high demand by the public. with fiat currency, inflation is inevitable as central banks keep printing more money over and over every day.   

[Artemis3]

Actually Inflation is a blessing in disguise. Inflation creates increased supply of money in the Economy and thus creating economic growth too. People agree that $1 had much more purchasing power 50 years ago and now we can purchase a lot less things with $1. But what they don't see is how the incomes around the country too have increased at a similar rate. Also the standard of living too of people have increased. The HDI too has increased. These actually are parameters of a happy life. Crypto may not have this advantage as they could lead us into a Deflationary spiral.

School of Chicago dogma (and lies). No, it is the opposite. The money you refer as "creating", does not exist anywhere. It is from the legalized Ponzi scheme known as fractional reserve banking. This is what produces bubbles, which inevitably pop later.

With deflation, people save money, and only use what they need to use. This means the time they want to invest, it is backed with real money, not thin vapor. It is "slower", but compared to your vapor based economy, it never pops up.

If you don't get it, compare the purchasing power of 1oz of gold.

Deflation is the blessing, inflation is the curse (and time bomb), it is what causes bubbles, such as the 2008 housing bubble. Until you get the Austrian School of economy, you will always live in the dark, spreading the only thing you learned, the dogma from the currently dominating school of economy.

Once you get how a deflationary economy works, you will stop spreading this nonsense. The good thing is, no matter what you think, you cannot stop Bitcoin.

Start reading: https://mises.org/

[Kyraishi]

Inflation on Fiat currencies is just one of the methods that governments use to "balance" their economy. You have to look at the basket of goods that are used to measure inflation to see how they determine the inflation to see how they manipulate it.

Crypto currencies like Bitcoin can help you to protect you against the impact of inflation, if it can retain it's store of value characteristics. In the long-term Bitcoin has shown that it beats inflation, so it is a good method to protect the value of your wealth against inflation. 

That's true - it's the best they can do with a unlimited supply of cash, although some countries have fairly low inflation rates right now.

It'll be interesting to see in the future, what countries are going to do with this blockchain technology - will they create their own crypto-currency that has a limited supply as well? That would easily kill inflation, which is still a problem for some countries.

[Shasha80]

If we talk about inflation, it means that it is related to the government which continues to print fiat through banks. Government do that for reasons of economic stability, the more fiat circulating the higher the inflation. With words others crypto can not stop inflation, according to the article I read how to deal with inflation is one of them people should save more than shop. Maybe the article gives instructions that can be applied in the world crypto, by suggesting people buy bitcoin with fiat or buy gold with fiat. That's a way to reduce inflation with crypto in my opinion, if you stop it is very unlikely. With crypto it can only reduce inflation.

[figmentofmyass]

Actually Inflation is a blessing in disguise. Inflation creates increased supply of money in the Economy and thus creating economic growth too. People agree that $1 had much more purchasing power 50 years ago and now we can purchase a lot less things with $1. But what they don't see is how the incomes around the country too have increased at a similar rate.

at a similar rate?

incomes are higher than 50 years ago, but they haven't beaten inflation---not by a long shot. the last several decades have actually been really stagnant in terms of wage growth. check out this chart:



from 1973 to 2013, wages only grew by 9.2%. over the same period, average prices grew by 424.68%. http://www.in2013dollars.com/1973-dollars-in-2013?amount=100

[MicroGuy]

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

Basically it will be a slow burn as cryptocurrency obsoletes fiat currency.

It's not going to take any special world event. The wheels have already been set into motion.

[Murat]

When you indicate the inflation then it's getting connected to the government policy, it's all about the current market price and previous market price, I think there is little scope for the cryptocurrency regarding this issue. when the cryptocurrency will be used for every aspect of our life then it will bring a good impact on the monetary world, It includes the inflation rate, But there is little confusion about the cryptocurrency's capacity for controlling the inflation because it's not the issue of this system. yeah, if you could people motivated to Bitcoin more and more by Fiat then the money supply will decrease and the inflation rate could be under controlled. I think that's the one way to make this thing happen.

[kryptqnick]

You cannot stop monetary inflation. Fiat or cryptocurrencies, they both experience inflation since there are new bitcoins created on intervals, the supply increases and therefore would create inflationary effect when demand does not keep up with the supply. You can, though, slow down the creation but you cannot remove the supply already in circulation to create deflation. Crypto won't solve poverty just like that. You cannot evade inflation. Another thing to note is the volatility of crypto-market that won't benefit at all times.

I don't think you are completely right. Surely, sometimes a currency decreases in value and sometimes it increases, but these are just fluctuations. If we are talking about the general tendency, then fiat will necessarily decrease in value over time (okay, Japan's weird on this matter, but it holds for the most part, right?), because that's how fiat works, inflation is considered to be a good thing even, when it's under control, because it encourages to spend money rather than collect it. Cryptocurrencies with limited supply are different in principle. They are not so bound to experience inflation as fiat money is, because it's not possible to create more and more coins, thus devaluating the currency.

[AicecreaME]

Surely, bitcoin can help a lot when it comes to people's financial problems but when we talk about inflation, I think it is a completely different thing. Bitcoin can't do much when we are already talking about economics. If countries like Venezuela want to improve their economy, they must rely on their economists to solve the problem.

And that is what they did, read this for more information about a venezuelan economist:
https://www.nytimes.com/2019/02/23/opinion/sunday/venezuela-bitcoin-inflation-cryptocurrencies.html

What he says here about the poverty that is going on in their country is true, I mean bitcoin is limitless unlike fiat. Their currency (Bolivar) is getting too much inflation being dependent on US dollar while their prodcuts don't change in price, therefore they adopted crpytocurrency (bitcoin) and they even taught the public about it (kudos on their Government). What helps venezuela is not the cryptocurrency alone, it is their open-minded government that took bitcoin's helping hand to aid their suffering community.

[pawanjain]

As of now the crypto condition is really turbulent as crypto is in its initial stage of adoption.
This is probably the worst condition for a new kind of growing economy since uneven adoption tends to decline in the potential value of the particular asset.
It will take a good amount of time for a currency like bitcoin to be widely adopted.
Besides that the circulation of bitcoin is currently unstable since few people hold the majority of coins meaning there is a higher probability of manipulation in the market. Nobody will want to invest in a manipulative market. As time passes by and more people join the community, the circulation will stabilize and hence it will lead to stable distribution of coins.

[Apes]

The initial number was to encourage the government to allow the use of cryptocurrency,
if the initial steps have been met, then the use of cryptocurrencies will be easier.
by using cryptocurrency in daily will make cryptocurrency use will go up and then fiat money will be replaced and forgotten.
switch to an inflation-free currency.

[Eclipse26]

It doesn't have to be like that. Just like what us happening in Venezuela, they're having a financial crisis where their money is losing value due to higher inflation. But look at Venezuela, not everyone of them adopted to cryptocurrency... Even if fiat started losing its value it doesn't completely assure us that everyone will shift from fiat to crypto.
We don't have to end up in poverty just to achieve mass adoption. Because if people are willing to adopt with this changes, we don't have to suffer at all. They're going to accept bitcoin even without experiencing poverty

[Lizzie_Girl]

I don't see crypto as inflation, more like volatility. It is too wild to call it inflation. For me, inflation would be like fiat and constantly go down not roller coaster all over the show.

It doesn't have to be like that. Just like what us happening in Venezuela, they're having a financial crisis where their money is losing value due to higher inflation. But look at Venezuela, not everyone of them adopted to cryptocurrency... Even if fiat started losing its value it doesn't completely assure us that everyone will shift from fiat to crypto.
We don't have to end up in poverty just to achieve mass adoption. Because if people are willing to adopt with this changes, we don't have to suffer at all. They're going to accept bitcoin even without experiencing poverty

They probably would save so much on paper using crypto. I wonder how many bucket loads of currency it takes to buy a loaf of bread? Crypto could essentially bring them out of their situation and give them hope.
Perhaps they could start their own currency.

[xiboothrezi]

What do you think would it take for a switch to happen?
It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?
what are all your thoughts on how a switch to crypto could happen?

Nothing must be "forced" to happen. In its time, cryptocurrency would really be acceptable because of its various positive benefits, it was better than trying to convince but those who were given the understanding already looked bad, didn't they? So let it run properly, and we still try to use the positive. I prefer that cryptocurrency and fiat be used together, complementary.

[hotmom]

If the crypto remains the main currency in the world, then in any case we will not be able to stop inflation

[doomistake]

If the crypto remains the main currency in the world, then in any case we will not be able to stop inflation

Cryptocurrency will not remain as the main currency because it is not yet the main currency, fiat is still the main currency, and inflation don't exist in cryptocurrency. Inflations on happens to fiat because of the "Cost-push inflation", when the demands stays the same yet the supply is decreasing due to sudden increase of labors or materials, (i.e. there is only 10 people who wants a certain shoes, however the next following month, the materials got expensive so there will be only 2-5 consumers that wants that shoes)

the other one is "demand-pull inflation", it is the exact opposite of "cost-push inflation" where the demand is higher than the supply, so why it can't happen to cryptocurrency? well it is because fiat is being controlled and cryptocurrency is not.

[jarhed]

If the crypto remains the main currency in the world, then in any case we will not be able to stop inflation

Cryptocurrency will not remain as the main currency because it is not yet the main currency, fiat is still the main currency, and inflation don't exist in cryptocurrency. Inflations on happens to fiat because of the "Cost-push inflation", when the demands stays the same yet the supply is decreasing due to sudden increase of labors or materials, (i.e. there is only 10 people who wants a certain shoes, however the next following month, the materials got expensive so there will be only 2-5 consumers that wants that shoes)

the other one is "demand-pull inflation", it is the exact opposite of "cost-push inflation" where the demand is higher than the supply, so why it can't happen to cryptocurrency? well it is because fiat is being controlled and cryptocurrency is not.

A lot of tokens appeared this year, where there is a very high level of inflation. I think this is a bad sign for the cryptocurrency market. Perhaps in this regard, in the cryptocurrency market, the stable coins will strengthen their position.

[Xxmodded]

Your thoughts on this. with the recent situation we face here in western countries. Like here in Canada. USA, Australia, Europe etc
we are constantly seeing inflation and our buying power decrease. Rise of poverty.
If crypto could save and prevent poverty.

Then what are your thoughts on how this switch over could really happen?

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

The switch will not be as abrupt as what happened to Venezuela. It will take time. First and foremost, the price of Bitcoin itself has to reach a certain degree of stability, Bitcoin transaction fees as well as confirmation time will have to adjust as well, and then stores and shops will start accepting BTC payment, and then the government will issue regulatory policies one after another, BTC owners themselves will stop hoarding it and start spending it the way it should be, and so on. I'm speaking of Bitcoin as crypto here because there is no other that can replace it in terms of acceptance.

I would say that the Venezuelan situation is isolated. The country does not seem to have a working system anymore except the one that is inside the head of Maduro and it is rotten.

We can stop inflation if using bitcoin as payment transaction but if bitcoin down you faced really inflation value than using cash money, you can faced with moment bitcoin dump more than 20% in few day like what happen with bitcoin price today, maybe if you use payment with bitcoin last day you have miss opportunity to get profit with your product selling.

[shield132]

To my mind there is one possible solution with crypto and that's it's ability to be limited which no one can change on their own. It don't has to be bitcoin cause it was never meant for massive usage and etc. I mean new crypto currency for example with limited supply - 21 million (example). Adoption has to be done slowly but that will happen when almost every people will have access to internet and computer, otherwise that's not possible.
We need limited supply which will also change a little bit depend on number of population with zero tx fees.

[Indrawan77]

I somehow think crypto is not the solution for the inflation problem and too much interference from crypto could create more inflation for the country because it could make Fiat worth less, and if you depend on the decentralized currency, it could be dangerous because it can be control by the whales

[worldtraveller321]

the volatility of crypto is based on the value to fiat

its the fiat that is moving around, not crypto.
its just that too many perceive FIAT as the one that has value not crypto
 crypto to some is only perceived in value based on FIAT

venezuela can not use USD as there is an internal inflation bubble on USD there as well
also the sanctions from USA to Venezuela, make USD an unpopular option to use as well.

[veleten]

you cannot stop inflation in the current paradigm
crypto or fiat it doesn't matter since the society is built on the inflatory basis where the money printed do not correspond to the resources they represent
i.e. there are countries who print coloured paper and get resources for them , for this to end a global reconstruction must happen
we can see some of it already where the centers are shifted from the British empire and the US to China , Russia and Iran
the problem is that all of the debts must be either paid ( which is impossible ) or annulled
this usually happens after wars or global cataclysms , so  careful what you wish

[Wintersoldier]

The initial number was to encourage the government to allow the use of cryptocurrency,
if the initial steps have been met, then the use of cryptocurrencies will be easier.
by using cryptocurrency in daily will make cryptocurrency use will go up and then fiat money will be replaced and forgotten.
switch to an inflation-free currency.

Even if the initial steps have been approved, it will still be hard to implemet the transition of currencies as different sectora of the government should also study all of the factors that can affect the economy. Mostly, cryptos are so volatile that national currencies need those that can be controlled. Meaning to say that we need a crypto created solely for the purpose of turning fiat to digital in order to avoid goods and  product inflation and for the crypto to be widely accepted.

[hello_good_sir]

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

It would be horrible to think that all of us need to end up in poverty and below in order to have a mass acceptance of crypto?

what are all your thoughts on how a switch to crypto could happen?

I don't think all fiat currencies will end in death, what happened to Venezuela because of a very weak economy and bankruptcy due to mounting debt and interest. many Venezuelans are not switching to bitcoin, but to the dollar US. I think switching to crypto does not save them but increases risk, although there is no inflation, crypto has fluctuations that are far more violent than inflation #IMO

Correct - we can't really see what's in the future to come, but has history has showed us even as far back as the batering days, people will like to use portable things that are easy to give it send across.

People often used items like eggs and bread to barter way back, then we went to cash, and now are are seeing growth in 2 different things actually - mobile payments and crypto-currency.

Mobile payments are in fiat and the majority of the population tend to enjoy paying in them better and crypto-currencies are hard to use in a real life situation but fare very well as a secondary option to accomply fiat payments.

[qwertyup23]

In the contrary about the idea of inflation, in fact, it actually brings positive value to the economy overtime CONSIDERING it stays on a controlled-level in which the government aims to follow.

Inflation is all about the overall increase price of goods/services in the market. Think of it as when prices increase, the purchasing power drops making the demand of items low and the supply high- which then makes the prices lower. Inflation can bring positive effects in the economy especially that it makes money circulate. The negative impact of inflation brings about when the 'controlled-level' is not followed and it reaches skyrocket high resulting to hyperinflation which what happened to Venezuela.

[Icygreen]

Western countries won't be able to switch to Bitcoin without help from their governments and the public is not going to to invest unless it becomes useful beyond speculation. It would need to be a somewhat reliable store of value.  30% moves in a day will scare away the average person. They can invest when Bitcoin is stable at 1 million.
Most people who are worried about inflation of their money are usually already hedging it into something else they believe in like property, PM's, stocks, etc. 
But to answer your question, yes, it will need to get much worse before a tipping majority start looking for alternatives.

[error08]

Do we all have to reach a ground ZERO, such as a situation like Venezuela. For everyone to trash their FIAT and accept a crypto system?

What do you think would it take for a switch to happen?

What happens in Venezuela is a snowball effect for years due to Maduro regime's economic mismanagement and corruption, his dictatorship brought the country to the brink of collapse. However, it's not happening in westerns countries, the government still trying to save the country's economy without political problems like in Venezuela.
The economic crisis will make things difficult, including the growth of bitcoin, because people will try to invest their money into basic things such as foods and water.
Cryptocurrencies meant to be alternative payment methods but the transition from fiat currencies to bitcoin will never happen as long as a country still stands.
In this case, if a country fails, they can try to adopt cryptocurrency but the volatility can't help to escape the crisis.

[yulionoo]

I don't think we need to be poor in order to switch to cryptocurrency. if the government of our country permits and legalizes cryptocurrency then there is no need to experience an economic crisis to switch to cryptocurrency. and what happened in Venezuela yesterday because of this country's crisis then was hit by hyperinflation which caused the bolivar currency to fall. so to overcome this they are looking for another alternative that is using bitcoin. bitcoin values that tend to rise can be a solution when fiat money experiences inflation.

[joinfree]

Other than stable or developed centralized cryptocurrencies we can never stop the inflation among cryptocurrencies such as Bitcoin, Ethereum, Litecoin etc. That's the setback of decentralization of cryptocurrencies and i don't know why most folks think cryptocurrencies can stop poverty. Lol, not that Satoshi is going to come outta no where to send bitcoin to almost everybody and even that would not be possible because it will be insufficient.
Cryptocurrencies were made to improve transactions and also improve privacy about financial transactions and not to drop manna from the skies!

[Asmonist]

I think the serious price downfall is just part of the seasons of prices in crypto that is just to happen. Inflation is just too broad to say that it has other factors to consider. As to crypto currency inflation is somehow associated with price downfall but changing of prices every minute is just normal. Inflation is something to do with the constant price downfall and value of crypto to its lowest point. Its more like of the value of chances to go down.

[the rise]

Inflation has a model that is connected to the stability of state policies and if they try to reverse the situation with crypto then many areas of position do not run perfectly, this is more a behavior of neutralizing the economic atmosphere in a hurry and ultimately damaging the position of their legal currencies on the world stock exchanges , damage will occur quickly in the medium area.