Is Bitcoin anti-inflation?

[Hamza2424]

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?

Yes BTC is anti inflation medium of exchange i would like to elaborate it as Not only anti inflation also well designed supply to demand management which creates its Market price always higher then its realized price except for bear or accumulation period. BTC is true freedom of money. As its anti-inflation you dont need to worry about you savings long term,its decentralized no need to worry about assets freedom spend where you want to, its in growing stage book your place / position now.

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[Pierre 2]

It is obviously anti inflationary currency cause, through PoW (Proof of Work) system, Bitcoin's hardness to mine increases over time in years. This means if enough people will keep supporting Bitcoin, its price will keep increasing in next years. I believe Bitcoin tech may get outdated in future so it may need updates or upgrades but, I think we will keep using same old Bitcoin next 10-15 years for sure. Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

[siniminomorocomunisakito]

The reason for this is because while Bitcoin was created as a currency, many people use it now as a store of value. However, when using Bitcoin as a store of value, people think how much its value will go up, which means that they multiply the current price by what they think the future price will be. It's not anti-inflation I think it's just a rebalancing of money due to increasing demand.

[darewaller]

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?

In this case we can notice one thing. That is, the central bank can print money as they wish, in this case, the more money they print, the more inflation will occur. But Bitcoin has a limited supply. As we all know the maximum supply is 21 million where currently over 19 million circulating. There are only a few millions left but the miners are not keen on the high mining cost. So nothing like this is likely to happen with Bitcoin.

We do not even have that much bitcoin to be honest, between the million satoshi took away with him, and maybe another million or two that is forever gone from losing them, I would say that there is a good chance we may have something like 17 million bitcoins up for grabs possibly, there are also a lot of long term holders, and I mean a lot.

So that leaves us with maybe like 10 to 15 million bitcoins traded every year, not every day of course because people hold, but every year that could be the real number. So that is a good and important thing that people need to keep in their minds. I personally try my best to keep realizing how scarce it really is, and that gives me hope.

[Solosanz]

Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

It doesn't impossible, but you just don't know how to get it.
You can get Bitcoin loan from centralized services e.g. Binance, Blockfi, Coinbase etc and you need to provide valid collateral. In this forum there's a lending board [1] where you can become a loaner or borrower, you can get loan without collateral or with collateral depend on your account trustworthy.

So this mean Bitcoin doesn't have any disadvantages since the problem has been solved?

[1] https://bitcointalk.org/index.php?board=65.0

[samuraijin]

Whether the decline in the price of Bitcoin some time ago, it could have been caused by the current inflation, but if you calculate the rhythm of the four-year cycle, then this year it remains, that the price of bitcoin will get a price decline in all markets, without inflation the price of Bitcoin will certainly  free fall, as we see today, maybe there are some people here who believe in the 4 year cycle, this is just my speculation, it all depends on your belief..

[teosanru]

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?

Yes it's anti inflation or what it is technically termed as deflationary. It works on the concept where the value of the currency becomes stronger over time as it is based on the concept of limited supply but unlimited demand. Ironically we have never had such a currency model for any country before. A set of economists say that deflationary currency isn't practically feasible due to the technical problem called deflationary spiral. As the value of currency will increase over time people will tend to spend less today and save for tomorrow which will reduce the aggregate demand in the economy further increasing deflation and slowing economic growth. This circle is not considered good for economy.

[BlackHatCoiner]

Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

This has nothing to do with inflation. A debt-based currency is reasonable to welcome loaning. Besides, you can loan/borrow bitcoin. Even this Internet board has such place: https://bitcointalk.org/index.php?board=65.0

without inflation the price of Bitcoin will certainly  free fall, as we see today

Certainly not. Inflation exceeded 2-3% about 2 years ago, a little after March 2020. Until then bitcoin was normally appreciating in value.

[darkangel11]

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.

It's all based on whether they can scare people away from spending money and make them save up,, especially in centralized institutions that can literally take money off the market.
When inflation is very high like 20% or more raising interest rates doesn't do much because people see the banks are giving them 10% on their deposits a year but they're still going to lose 10 or more to the inflation so it's better to keep spending and buying real life goods, gold, silver, jewelry, even cars because those are not going to lose 10% each year.
Situations like that could be observed in former Soviet Union countries in the 90s where people preferred to buy additional home appliances than hold fiat and they'd hoard washing machines, fridges and furniture.

When inflation is below 10% you can play around with rates. When it goes to 80% like it is in Turkey now it won't change anything. You're on your way to hyperinflation and the big reset of the fiat currency that happens usually at least once every 100 years.

[cryptosize]

It is obviously anti inflationary currency cause, through PoW (Proof of Work) system, Bitcoin's hardness to mine increases over time in years. This means if enough people will keep supporting Bitcoin, its price will keep increasing in next years. I believe Bitcoin tech may get outdated in future so it may need updates or upgrades but, I think we will keep using same old Bitcoin next 10-15 years for sure. Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

I don't like fiat, but this is a good point.

What would you prefer to do?

1) Take a $20000 loan at 5% interest rate and repay it 10 years later.

2) Take a 1 BTC loan at 5% interest rate and repay it 10 years later.

I think acquiring 1 BTC in 2032 will be darn near impossible, unless you're super rich.

On the other hand, 20k USD might not even be enough to buy a car due to inflation... easy repayment!

So yeah, I don't think BTC incentivizes a debt-based system.

This is both a good and a bad thing, depending on how you see it... some people consider debt a form of slavery (with invisible and not metallic chains), while others consider a debt-based system necessary to promote economic growth.

But economic growth (due to QE) also means that bubbles will be created from time to time... even BTC's bubbles every 4 years, since we're still in the fiat standard.

[m2017]

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?

It depends on which side to look at it. Judging by how Bitcoin fell from $69k to $19k, can we call it an anti-inflation model? Very unlikely. This is subject to short-term judgment. Having analyzed the graph of changes in the price of Bitcoin for all the time of existence, you can see a completely different picture, close to the anti-inflationary model of behavior. In fact, this is embedded in the very essence of Bitcoin: despite the fact that the number of Bitcoin mined is growing, which means that the total number in circulation is also increasing, Bitcoin can't be printed indefinitely, like ordinary money.

[TopT3ns]

Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

This has nothing to do with inflation. A debt-based currency is reasonable to welcome loaning. Besides, you can loan/borrow bitcoin. Even this Internet board has such place: https://bitcointalk.org/index.php?board=65.0

Bitcoin will not be affected by inflation of any fiat currency, but the increase in the price of bitcoin every 4 years when there is a halving may be considered this movement as inflation, because as far as I have learned about inflation, it is a price increase that always occurs at any given time, so it is possible the price of bitcoin will skyrocket again as it approaches the halving that will occur in 2024.

Borrowing using Bitcoin currency is terrible when bitcoin price conditions are high because the exchange rate you get can be very little and when the price collapses and repaying the loan will require a very large amount of Bitcoin, borrowing in the cryptocurrency world I prefer to use stable a coin that has a more stable price movement than Bitcoin.

[n0ne]

I don't like fiat, but this is a good point.

What would you prefer to do?

1) Take a $20000 loan at 5% interest rate and repay it 10 years later.

2) Take a 1 BTC loan at 5% interest rate and repay it 10 years later.

I think acquiring 1 BTC in 2032 will be darn near impossible, unless you're super rich.

On the other hand, 20k USD might not even be enough to buy a car due to inflation... easy repayment!

So yeah, I don't think BTC incentivizes a debt-based system.

This is both a good and a bad thing, depending on how you see it... some people consider debt a form of slavery (with invisible and not metallic chains), while others consider a debt-based system necessary to promote economic growth.

But economic growth (due to QE) also means that bubbles will be created from time to time... even BTC's bubbles every 4 years, since we're still in the fiat standard.

With fiat we can say firmly that the inflation increases with time. This happens with most currencies, and there'll be exception with few country's fiat. In all ways bitcoin is stronger than fiat in terms of inflation and other features, but what is being stated seems to be something on prediction and hope and not the truth. No one knows the future of bitcoin, based on the growth it have attained over the years we can expect growth with bitcoin that will be high against the inflated currencies.

[witcher_sense]

What most people subconsciously refuse to realize is that bitcoin can be said to be anti-inflationary only in isolation from fiat currencies prices, which are known as artificially designed humanly-conjured things for inflationary manipulations. The basic test for anti-inflation is the following: if you can't print it out of thin air by the flick of a switch, then an asset can be said to have properties providing anti-inflation. Take, for example, gold - a physical commodity with strong chemical properties - there is no way to produce it artificially without incurring losses bigger than the price of gold itself. The only economically rational way to obtain gold is through physical effort: whether by extracting it from the Earth's crust or by buying it from others, which also implies physical effort because you were spending your precious time to earn funds with which to buy gold. Bitcoin is no different from gold in this sense: you either extract it or buy it, you can print up it out of thin air like other inflationary assets. That makes it anti-inflationary, but these properties only matter inside the network itself; fiat currency fluctuations shouldn't be taken into account.

[BlockChainMentor]

i think yes , bitcoin is a anti inflation. As gold increases and the price of land increases, the value of bitcoin will also increase over time and inflation is not going to have any effect.

[Mauser]

It is obviously anti inflationary currency cause, through PoW (Proof of Work) system, Bitcoin's hardness to mine increases over time in years. This means if enough people will keep supporting Bitcoin, its price will keep increasing in next years. I believe Bitcoin tech may get outdated in future so it may need updates or upgrades but, I think we will keep using same old Bitcoin next 10-15 years for sure. Only thing which people may dislike is, it is nearly impossible to get loan through Bitcoin. Our fiat currencies welcome credit/debt systems more with their inflationary structure.

I agree with you, there are anti inflationary pressure in bitcoins. The biggest one is the limited supply of BTC, there can't be new coins be printed overnight. Long term bitcoins should be a great tool to protect us from inflation. And if we look at longer time periods, bitcoin has done a good job in keeping its value. The problem is short term price corrections that we saw since the last ATH. Here are much bigger forces at play that bring down the price, while the price boost from rising inflation is only marginal. The world has changed since last year, we can see this also in the stock market which is down 30%.

[Hamza2424]

i think yes , bitcoin is a anti inflation. As gold increases and the price of land increases, the value of bitcoin will also increase over time and inflation is not going to have any effect.

No dude its not Anti inflationary as if you see its performance According to Quarterly but it is anti Inflationary in the Long Run still i think there comes many other points so for now I'm standing there that its not anti inflationary and its not even a currency consider BTC as an asset then you can see better results here.

[bitzizzix]

Evaluating bitcoin as a store of value, it passes tests based on characteristics such as purchasing power, trustworthiness, liquidity and portability. And bitcoin can hedge against future inflation caused by government stimulus measures and prices cannot be easily influenced by government policies.
and with all that is happening around the world, investing or owning bitcoin can be one of the best options for hedging against inflation.
and the fact that Bitcoin has a limited supply of 21 million coins, 19 million of which have already been mined, so in theory, a high demand for something rare will lead to a price increase and that's for sure in the long run.

[BlackHatCoiner]

Bitcoin will not be affected by inflation of any fiat currency, but the increase in the price of bitcoin every 4 years when there is a halving may be considered this movement as inflation

Bitcoin is affected by inflation. Just like any other product, when there's inflation, products with steady demand (such as milk, sugar, flour) are re-evaluated to a higher price. Same can be said for bitcoin, but it's just less important than these, and isn't considered a need (yet). So, once the supermarket trolley becomes more expensive to full, people will sell their bitcoin as they recognize it more as a luxury.

Plus, bitcoin market is far more manipulated than any other. Inflation plays a less significant role to its fluctuations.

[EarnOnVictor]

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?

I think you need to get more informed about this topic as it was not supposed to be phrased like this. What I understand about anti-inflation is what could curb inflation, and how would Bitcoin do that? Yet, let me pretend as if I understand what you are trying to express, and the answer is No, Bitcoin cannot withstand inflation, it will be pressured under it as it is been seeing these days.

Also, I had read about the printing of money causing inflation because of the assumption that consumers would have access to more money and would want to buy more, while the producers/manufacturers would increase prices because of increased demand. But I say they are all nonsense. In this modern day, you have access to your money online and could do anything you want with it without physically holding many of them.

So, how is that relating well with inflation?