Is Bitcoin anti-inflation?

[Liamttw]

The so-called inflation refers to the instability and inflation of currency value caused by the central bank printing a large amount of currency under the conditions of currency circulation.

Bitcoin has a large amount of computing power, is anonymous and has strong hedging properties. And its limited supply will not be issued randomly like national legal currencies, Bitcoin can effectively resist inflation.

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[junmisakiro]

I don't think any asset is completely anti-inflation, because every asset has its own risks and advantages, whether it's bitcoin, gold or real estate.

But no at this time.
Is gold anti-inflation?
Check out gold price if you wish,  then think why.

Yes, four years ago, gold prices were at the worst level, this is because investors became panicked due to the US employment data report that sparked concerns over the US central bank.

[sou-kou]

As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

Deflationary design is incorporated in BTC. But if the goal was to create a pure inflation protected asset, I think there would be more safeguards and features built in to deter volatility.

Inflation alone is neither good or evil. Its a symptom of markets that manifest under certain conditions.

The problem is high risk will always be correlated with high profits. National mints sometimes overprint currency to bailout poor investments made by high rollers in public and private sectors. Leading to economic instability and inflation. The more underfunded programs and investments are, the higher the volume of fiat necessary to bail them out.

Bitcoin definitely represents an improvement over current markets and financial structures. But I do not think its fair to label it a pure inflation protected asset or something that was designed to be anti inflation.

If Bitcoin changes the governmentmint's system of printing money at will, what will these companies do if some companies or infrastructure have loopholes in bad assets, but they cannot print money as they do now?
There is another possibility. One day, 1 million US dollars of Bitcoin will be used to rivet the currency of the world. The fiat currencies of other countries still exist, but Bitcoin must be rivetted. At that time, the government needs to print money to help companies or infrastructure. What should the government do?  What kind of scene will it make?

[stompix]

I don't understand why almost everyone focuses on money printing when it comes to inflation.
Just the other week I remember a somewhat similar discussion and there was the example of Japan, money printing yet deflation.

I'm amazed how these days there are still millions out there who just shout money printing but they don't have a clue what is next in the line after that, and this is the whole difference between having inflation or not. The government or the central bank or whoever has the authorities in this in a country can inject money and send them as paychecks to everyone, you will have more money in circulation, more money poeple are willing to spend, the same amount of goods, you're going to have inflation in consumer goods. The government decides to spend all this money on a project for the infrastructure the inflation will be close to zero, and if the in some cases even bringing in cheaper goods, one example would be an investment in irrigation. The same stands for military spending, you won't see a 10% rise in cornflakes prices because the US is building more nukes.

There is no inflation without increased consumption or decrease in manufacturing, or both of them combined.
Everything comes with the profile of the participants an economy, it doesn't matter if it's gold of bitcoin or fiat, in case of a shortage or break of supply chains like it did with tens of products over the last year bitcoin is not going to help you, it is not going to simply increase its value against the dollar by the same rate as the inflation, things in the economy don't work like this, otherwise, we wouldn't have had countries and citizens going bankrupt before paper money was invented.

[Chathusand]

Overall, the bitcoin protocol is much more than forkable software; it also determines the rate at which new currencies are produced and how quickly the rest of the world adopts bitcoin. It will fail if you miss one parameter.

[odolvlobo]

I don't understand why almost everyone focuses on money printing when it comes to inflation.

The reason is that inflation is defined as money printing in some camps, and rising prices are the result of inflation.

The more current/modern definition of inflation is the opposite. Inflation is rising prices, which can be caused by money printing in addition to other factors.

[lepbagong]

According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

Bitcoin can indeed act as a hedge against inflation due to its limited supply, meaning when there is a demand for bitcoin, the price per coin will go up, but given the highly volatile risk, I think bitcoin is better used as an investment.

this is one of the advantages of bitcoin compared to fiat, where fiat has been used for a long time than bitcoin. bitcoin is clearly very limited in number and cannot be increased, in contrast to fiat which can change and increase in number depending on the foreign exchange/gold stock owned.
so that inflation will occur in fiat not for bitcoin, so bitcoin is suitable for investment.

[GeorgeJohn]

I really don't know if this bitcoin can be an anti inflation asset or not. Bitcoin had a price of $0 when it was first introduced by satoshi. Maybe initially bitcoin was created as an asset that experienced inflation in its first years, but so far it is possible that the percentage of inflation will go down. Getting a little extra information from the bitcoin.org site, I don't think bitcoin was created as an anti-inflation asset, but there's always a chance that inflation won't happen on a much larger scale.

From my perspective i don't think bitcoin can go down any longer, no matter how the inflation of economy in any country or worldwide economy, using when bitcoin was introduced as case of study or reference it's obvious that bitcoin was at zero in value during 2009, but now the value is different, cryptocurrency generally inflation will keep on accelerating instead of deduction in value, in actual sense our objectives is to make a contribution that will make it  or enable it to be rising.

[Hughes_Ryan]

I don't understand why almost everyone focuses on money printing when it comes to inflation.

Money printing/inflation has a very close correlation. Printing money only helps to increase the price of materials and goods while the production volume remains or lower. This causes inflation, every year the rate of inflation continues to increase due to the process of printing money from the government. Bitcoin has a fixed supply and is derived from hard mining, it represents the ratio of supply/demand met with value.

[jinneas]

With the outbreak of the epidemic, central banks of various countries have introduced economic stimulus measures to support the market and economy. Bitcoin's anti-inflation characteristics have played an important role.
The essence of inflation is that the currency is over-issued, and the total amount of Bitcoin is constant at 21 million. The decentralization of Bitcoin means that no one in the world can monopolize the income of this asset appreciation. No one can over-issue, and no one can manipulate this market. It does not rely on the issuance of a specific currency institution, and is generated based on a specific algorithm and through a large number of calculations. It has anonymity and can play a role in anti-inflation when the economy is down.

[john alex young]

Sleeping for a long time, when I woke up I was already in a world that was very chaotic with its economy.
Because of high curiosity made me keep looking on google search until I found an article and I read it over and over again, it turned out that Bitcoin was extraordinary.

Bitcoins are real.
Thank you Satoshi

[cheezcarls]

According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

The central bank of each country may be printing an unlimited supply of fiat which is the main cause of inflation. But for BTC, there will never be an inflation. It continues to be deflationary as there will be no more than 21 million BTC forever.

No matter if we are in an economic crisis for generations, Bitcoin is here to stay and remained deflationary.

[KingsDen]

According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

When we talk about inflation, there are many things that contribute to inflation. I can categorise them as nation base and global base, so the kind of inflation we are seeing today is global inflation and the role of Bitcoin is not to fight against inflation, be it global or otherwise. But bitcoin can protect you as an individual against the adverse effects of inflation. How will bitcoin be able to do that? it is because one BTC is equal to 1 BTC anytime anyday.

When you talk about the Fiat money, the government prints money, they try to regulate it but inflation keep hitting the economy. Prices of goods are almost trippled just from agter covid-19. One thing about global inflation, bitcoin cannot actually stop it, you remember recently that US released the inflation rate, bitcoin price dropped, this is to show that bitcoin is responsive to the economy.  Bitcoin protects you and not the whole nation.

[awik p]

According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

When we talk about inflation, there are many things that contribute to inflation. I can categorise them as nation base and global base, so the kind of inflation we are seeing today is global inflation and the role of Bitcoin is not to fight against inflation, be it global or otherwise. But bitcoin can protect you as an individual against the adverse effects of inflation. How will bitcoin be able to do that? it is because one BTC is equal to 1 BTC anytime anyday.

When you talk about the Fiat money, the government prints money, they try to regulate it but inflation keep hitting the economy. Prices of goods are almost trippled just from agter covid-19. One thing about global inflation, bitcoin cannot actually stop it, you remember recently that US released the inflation rate, bitcoin price dropped, this is to show that bitcoin is responsive to the economy.  Bitcoin protects you and not the whole nation.

if in the current situation investing in bitcoin will give us comfort later because the value will increase and be greater than the inflation that will occur, so with bitcoin we can save our assets from inflation that will continue to rise later. Unfortunately, to achieve this, not everyone can do it because many people actually lose their assets due to their own mistakes who do not understand the characteristics of bitcoin

[MinoRaiola]

A lot of things have been write before me, and now we can say that the inflation of a euro or dollar currency is something different from a Bitcoin inflation. The central bank can print money and increase inflation. Bitcoin has reached the limit in 2140, that is a huge difference. I see it as simple and only then could we know. Until then every 4 years halving will reduce the rewards. The rewards will stop, the money printing not.

[KingsDen]

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if in the current situation investing in bitcoin will give us comfort later because the value will increase and be greater than the inflation that will occur, so with bitcoin we can save our assets from inflation that will continue to rise later. Unfortunately, to achieve this, not everyone can do it because many people actually lose their assets due to their own mistakes who do not understand the characteristics of bitcoin

Even if the price of the equivalent fiat doesn't increase, the value doesn't decrease. The price of Bitcoin doesn't go down, because it is capped at 12kM.
Yea, people lose their bitcoin because of inability to keep it safe, also people lose fiat to disasters, theft and unknown to them by inflation thereby reducing their purchasing power and their savings strength.  But it's never a reason for them to stop using fiat.

Apart from being safe for inflation, there are some other reasons that people pick interest on bitcoin, such as; liberty to control their money, ability to be private and save their personal data, because of the volatility of bitcoin to make some profits when the price rises. So, bitcoin serves different purpose for different people.

[KennyR]

Based on the systematic view, bitcoin needs to be anti inflationary, but it doesn't look like it is against inflation. The limited supply makes it a tool against the inflated currencies. However to take effect it needs to have the market big as the fiat and now the cryptomarket have begun to coexist along with the traditional market.

[Iranus]

There are only a few millions left but the miners are not keen on the high mining cost.

This is not true, even though we are in bear season and the drop in bitcoin price makes it hard for miners to mine bitcoins, but they keep going and don't give up despite the tough conditions. It can be said that the bear season will make many miners depressed because they cannot afford to make a profit to spend every day, so they may close a part of their miner, but the big miners, they are still continuing to mine because they have enough reserve costs during hard times. Not to mention once the market rallies, the retail miners will also go back to their jobs. The block reward is decreasing and the difficulty will increase but in return the bitcoin price will increase so they will not pass up this good work.

[Gyfts]

According to many analyzes, inflation is caused by the printing of money by the Central Bank.

I think this is the main cause of inflation. However, the effect is not so easily observed in real life.

Central Banks are also able to control inflation increasing interest rates. When interest rates are high, inflation tends to go down.

Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?

Bitcoin  may protect you against inflation, just like gold. The problem is that bitcoin is still very volatile, so you are exactly protecting yourself against inflation. You lose much more money than you would lose to inflation (especially if you live in a country where inflation is controlled), but you may also have huge gains.

So, I think that it is a nice protecting against inflation, but it shouldn't be your only protection against inflation, due to its high volatility.

Central banks only control inflation through interest rates because they don't put a cap on the money supply. You could theoretically have inflation without fluctuation in the money supply if some global event, ie war/COVID-19, caused supply chain issues and increased the scarcity of consumer products. The difference is, induced inflation through money supply increase ensures that the prices do not actually come down. You can't take the money out of circulation once it's already in there (very easily, for that matter). Temporary price increases due to global events eventually stabilize once supply chains return to normal -- it causes prices to go down.

Interest rates are only part of inflation. That's more the reactionary mechanism of inflation. The core mechanism is an unchecked money supply.

[_act_]

Based on the systematic view, bitcoin needs to be anti inflationary, but it doesn't look like it is against inflation. The limited supply makes it a tool against the inflated currencies. However to take effect it needs to have the market big as the fiat and now the cryptomarket have begun to coexist along with the traditional market.

Bitcoin is against inflation, but not in short period of time, but in a long period of time. Checking since all-time-high, you will only noticed that bitcoin is inflationary, but not because all-time-high is certain, and that bitcoin is not getting back to the pre-bullsih period price which makes it deflationary. Do not mind those news that bitcoin is behaving like the traditional market, they is all lies, in much longer time, bitcoin is an hedge against inflation.