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?

[1714100741]

1714100741

[1714100741]

1714100741

[1714100741]

1714100741

[1714100741]

1714100741

[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.