Inflation soaring in US and other countries gives good prospect to bitcoin

[paxmao]

I was aware that after all the money printing and giveaways during the COVID was just delaying the payment of the crisis ´till a moment in which the economy could possibly take better care of it. However, it was certain that the true cost of the crisis was not being paid. But here is the bill: Soaring inflation, happily accepted by governments in Europe and mainly in US: 5% YoY in August.

This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!

[Hydrogen]

https://www.youtube.com/watch?v=xGkpzt49aP4
Behind the Fed's Curtain, Something BIG is Brewing.

There's a crazy chart I saw in the background of that youtube clip that shows the extraordinary degree to which the US money supply is being inflated post 2020.



I guess this is what a Joe Biden economy looks like.

[The Sceptical Chymist]

https://www.youtube.com/watch?v=xGkpzt49aP4
Behind the Fed's Curtain, Something BIG is Brewing.

I'll take a look at that video, but I have to say....it's made by Mike Maloney of GoldSilver (external link there), who's trying to sell you gold and silver.  And what do those folks always say?  Well, just look at all the articles linked to on coinflation.com.  They all basically say the same thing, and they're the same articles from 1, 3, 5, 10 years ago, just rewritten over and over.  The economy is in trouble; the dollar is backed by nothing; where's all the gold in the Fed's vault?; silver is going to $100/Oz., etc., etc.

So take that with a mountain of NaCl.

I guess this is what a Joe Biden economy looks like.

I am no fan of Biden, but he didn't start this mess.  Not that he's doing a damn thing to help it, but the problem was there well before he was even a presidential candidate. 

And yeah, inflation is ramping up and I'm afraid of where it's headed.  Hopefully wages keep pace with it, and hopefully the USD doesn't hyperinflate.  That's a lot of hope there.

[Poker Player]

I'll take a look at that video, but I have to say....it's made by Mike Maloney of GoldSilver (external link there), who's trying to sell you gold and silver.  And what do those folks always say?  Well, just look at all the articles linked to on coinflation.com.  They all basically say the same thing, and they're the same articles from 1, 3, 5, 10 years ago, just rewritten over and over. 

Yes, but the problem for the last year and a half is the acceleration in money printing, which is what is reflected in the graph shared by Hydrogen. Even the rise of the S&P 500 over the last 18 months has a lot to do with the massive printing of money, apart from corporate profits. If you look at a graph of countries with hyperinflation such as Venezuela or Zimbabwe, you will see that the stock market rises by a huge amount but this is due to the devaluation of the currency and that the devalued currency has to be put into assets to protect the value, and not to the evolution of the business and the profit of the companies.

[Coyster]

I was aware that after all the money printing and giveaways during the COVID was just delaying the payment of the crisis ´till a moment in which the economy could possibly take better care of it. However, it was certain that the true cost of the crisis was not being paid.

Well, in my candid opinion the money printing which happened during the heat of the pandemic was a sort of 'necessary evil' and tbh I don't blame most governments for that move, even though it was not a wise one, but they were afforded only very few options. People could not go to work, many who couldn't work from home were more or less not earning, I feel the government needed to do something to support people and to stimulate the economy back to work by putting money into people's hands. It's a move that has and will still cause high levels of inflation, but at that time I consider it something that was necessary, what the government need to do now is to map out measures to tackle inflation or at least reduce it to a minimal level.

Having said that, some economies were in a bad shape and were struggling with inflation even before the pandemic, the pandemic only made things worse which all of us can understand, I believe countries with a stronger economy before the pandemic would not slip totally into hyperinflation, they will still fight their way out of it, cause in my opinion a pretty bad economy pre pandemic would only get worse now the pandemic is to an extent being brought under control, whilst a viable economy before the pandemic would struggle, but will bounce back up quicker than others.

This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!

I don't know if it's good news for Bitcoin enthusiasts, cause we all reside in one country or the other, Bitcoin is not at mainstream adoption yet, meaning fiat remains the most popular method of payment for most of us, if hyperinflation is the case in the country we reside in, then the cost of living goes high, prices of goods skyrockets, fiat currency gets devalued, thus whenever we exchange our Bitcoin back to fiat for one reason or the other, it affects us.

[Charles-Tim]

This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!

This is not wrong, bitcoin is still highly speculative, young and appreciate over time after series of volatility, but there will be price valuation over time, the best is to just hold bitcoin which has limited supply. Unlike fiat, the government control the price, the control is always in the depreciative direction, but what most contry suffer is the negative effect of covid-19 which is resulting to inflation, but bitcoin even increased during the pandemic. More money printing will lead to devaluation.

I don't know if it's good news for Bitcoin enthusiasts, cause we all reside in one country or the other, Bitcoin is not at mainstream adoption yet, meaning fiat remains the most popular method of payment for most of us, if hyperinflation is the case in the country we reside in, then the cost of living goes high, prices of goods skyrockets, fiat currency gets devalued, thus whenever we exchange our Bitcoin back to fiat for one reason or the other, it affects us.

It is actually a good news for Bitcoin enthusiasts in this regard, bitcoin can easily be converted to with fiat, also bitcoin can be converted to fiat when needed fiat, the last thing I can never do is to hold my country's fiat which is even more depreciative than USD, I only have the ones I want to spend monthly with me. So if my country fiat has depreciated which is always the case, I gained when I am converting bitcoin to fiat.

[Kong Hey Pakboy]

It does give good prospects but at the same time, the people that don't have any bitcoin will be suffering from this high inflation, they don't have any shield from inflation so that's to be expected when this kind of thing happens, I guess not everyone will be able to benefit from all of this.

[paxmao]

...

I guess this is what a Joe Biden economy looks like.

All that money printing has been done to avoid the worse effects of COVID and it has happened in US, Europe, Japan,... so it does not seem related to an specific party. It is true however that JB has approved a quite large stimulus bill for the US economy which appears greater than the financing that the EU has put in place, but you should weight the consequences of not doing so - basically a crisis similar to the great depression of 1929 in which farmers and people in general were left helpless and only ended upon a government initiative.

There is a reason for doing this and as a side effect, it is good for us hodlers.

[Lucius]

I can only say that I already feel inflation on my skin, I notice every day that prices are going up, and that new prices are being announced when it comes to gas, water, electricity, but also food. Of course, the pandemic and all the measures taken in this regard are the main cause, but the major climate changes that have caused reduced food production around the world should also be taken into account.

I agree with those who say that the governments of the most powerful countries did not have a choice about the measures they took, even though they know that this is not a good solution. I also think that the world is generally in a much worse situation than they want to admit, but panic is not in anyone's interest, so it is better that we all pretend that more or less everything is fine.

Bitcoin may be a good hedge against inflation, but one should never forget how volatile it is.

[bitmover]

I can only say that I already feel inflation on my skin, I notice every day that prices are going up, and that new prices are being announced when it comes to gas, water, electricity, but also food. Of course, the pandemic and all the measures taken in this regard are the main cause, but the major climate changes that have caused reduced food production around the world should also be taken into account.

But here is the bill: Soaring inflation, happily accepted by governments in Europe and mainly in US: 5% YoY in August.

This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!

Inflation is here. Just take a look at this statista chart:



Inflation is climbing up, and you can see inflation is above 5% YoY for 3 months already!! This is a bit alarming imo. Inflation are basically taxes, and the population is going to pay for that.

Bitcoin may be a good hedge against inflation, but one should never forget how volatile it is.

I agree. Bitcoin shouldn't be your first line of defense against inflation. I believe stocks (ETF) and REITS and gold are more suitable for that.

 Bitcoin is important to defend yourself against hyperinflation, and it is an easy choice in countries like Brazil or some other in Latin America, where we have 5-10% inflation per year since forever.

[el kaka22]

Inflation has always been there, it will not get any better neither. It is number two reason for me to go into crypto, after the fact that I just disliked banks so much that I wanted to find a way to live without banks. Obviously I still have to end up using banks because I can't pay everything with crypto, but that doesn't change the fact that at least we are on that path. Inflation is the reason why people are not doing fine, salaries do not go up as high as inflation does in most nations.

Plus, when you hear about stats on inflation realize that there are many people who are paid to do those calculations which means that governments could very well made them to say a lower amount than what it really is. At the end of the day what they say 2% could be 4%, consider it that way. I personally feel the huge inflation in my nation and how hard my life becomes because of it.

[Sterbens]

Let's compile how much inflation data is currently a threat to every country, be it the US, UK, and European Union countries which are being hit by anxiety from the impact of changes after the Covid 19 pandemic.

Starting from the International monetary fund of 0.7% to 2.4% in 2021 . Some countries such as Spain (July 2021: 1.00% - 4.65%), Belgium (August 2021: 0.52% - 2.73%),
 Germany (August 2021 : 0.00% - 3.87%), Slovenia (August 2021: 0.09% - 2.11%), Finland (August 2021: 0.24% - 2.17%),  Sweden (August 2021: 0.51% - 2.05%),  Czech (August 2021 : 0.69 % - 4.09 %),  Luxembourg (August 2021: 0.97% - 2.46 %),  Poland (July 2021: 0.43% - 4.85%),  Hungary (August 2021: 0.19% - 4.88%), as well as other countries showing fears of going mad Rising inflation.

[Hydrogen]

I'll take a look at that video, but I have to say....it's made by Mike Maloney of GoldSilver (external link there), who's trying to sell you gold and silver.  And what do those folks always say?  Well, just look at all the articles linked to on coinflation.com.  They all basically say the same thing, and they're the same articles from 1, 3, 5, 10 years ago, just rewritten over and over.  The economy is in trouble; the dollar is backed by nothing; where's all the gold in the Fed's vault?; silver is going to $100/Oz., etc., etc.

So take that with a mountain of NaCl.

Most "approved" media sources are owned and funded by a tiny sliver of corporations. They're more biased, agenda pushing and unreliable than Mike Maloney Gold & Silver. Many youtubers and anonymous bloggers offer more independent and objective coverage of news and current events than big media enterprise.

I've followed Mike Maloney for years. I've watched his videos, analysis and breakdowns for years. His content has always been great. Despite being known for being into precious metals he doesn't push an agenda or narrative that aligns with his own self interests.

I am no fan of Biden, but he didn't start this mess.  Not that he's doing a damn thing to help it, but the problem was there well before he was even a presidential candidate.  

And yeah, inflation is ramping up and I'm afraid of where it's headed.  Hopefully wages keep pace with it, and hopefully the USD doesn't hyperinflate.  That's a lot of hope there.

If its not being caused by Biden's administration. What is causing it? Biden may have increased the US deficit by upwards of $10 trillion in less than 1 year. But its not his fault. Biden shut down the keystone pipeline which drastically increased oil and gasoline prices in the country. But its not his fault. The afghanistan withdrawal was exceedingly poorly handled. But its not Biden's fault.

Notice a pattern forming. I would be very interested to know why none of the specific actions Biden has taken which have had very negative consequences for the world, are not his responsibility.

I remember a time when the deficit increased $1 trillion when Trump in office and the media was crying about the deficit rising, saying Trump was the worst President ever.

Now Biden is introducing $2 trillion and $3 trillion dollar "infrastructure" spending bills, which would increase the deficit more than 5 times the amount it rose when Trump was President. And suddenly no one cares about the deficit anymore. The deficit is no longer a topic worth discussing when Biden is President.

Then of course, even if people are made aware of the facts, they turn a blind eye and pretend they don't exist. Facts, science and truth are completely irrelevant to most in this day and age. All that matters is being trendy and repeating the same headlines as the trendy people on social media and TV.

Trendiness is a prime directive of utmost importance. While legit science, knowledge and facts are deemed utterly irrelevant. This could be the real cause behind the majority of our negative societal and economic trends.

Looking around it seems far more important to repeat trendy headlines, than it does for people to be knowledgeable or accurate on critical topics that affect the lives of billions worldwide. The end result of this trend will be horrible for all of us, if it doesn't change.

[Gyfts]

I am no fan of Biden, but he didn't start this mess.  Not that he's doing a damn thing to help it, but the problem was there well before he was even a presidential candidate. 

And yeah, inflation is ramping up and I'm afraid of where it's headed.  Hopefully wages keep pace with it, and hopefully the USD doesn't hyperinflate.  That's a lot of hope there.

Joe Biden was behind extending unemployment benefits until Sept. 2021, which means for over a year people got paid to stay at home and do nothing. That includes a time where vaccines were widely available.

He's already spent 1.25 trillion this year, and is proposing another 3.5 trillion in nonsense spending.

At some point, you cannot keep increasing the money supply. The federal reserve is responsible for a lot of this, because their quotative easing strategy involves taking on more securities than they can chew, hence increasing the money supply, but it's also compounded by Biden and his trash heap policies.

I don't really mind, as USD failing would also fail all the other currencies that depend on USD, increasing BTC's price - but the US could also try to prop up a failing USD by implementing crypto regulations, so USD's implosion isn't without risk.

[hello_good_sir]

I was aware that after all the money printing and giveaways during the COVID was just delaying the payment of the crisis ´till a moment in which the economy could possibly take better care of it. However, it was certain that the true cost of the crisis was not being paid. But here is the bill: Soaring inflation, happily accepted by governments in Europe and mainly in US: 5% YoY in August.

This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!

Yeah definitely.

This is exactly the situation that bitcoin has built for. With a limited supply and no association to the fiat economy, it is certainly the perfect hedge against fiat inflation/debasement.

A lot of people still think that gold will be the standard for store of values going forward. Gold bugs have generated negative real returns for the past 4 decades or so - and BTC is clearly the better alternative.

[jseverson]

-snip-

I would like to point out that inflation fell to 5.3% this August...which isn't much better, but could be a sign that things aren't as gloomy and doomy as one would think.

I do agree that the aggressive fiat printing plays a part, but it feels like it's more of a byproduct of people being able to go out and spend again, with supply still lagging behind. Things are expected to go back to normal as unemployment goes back to normal (which in turn lets supply chains go back to normal capacity), and while that may take a good while I honestly don't believe that the US is in any risk of going into hyperinflation. The money printing is likely a different issue altogether, and we'll probably feel that in a different way down the road.

But yeah, regardless of which side of the fence you're on, diversifying is never a bad thing, and Bitcoin has proven to be a strong option.

[Darker45]

And the sad part is that COVID-19 is not yet over. We are about to enter the year 2022 and yet the same pandemic that started in 2019, hence the name, is still here and might still be around in the next year or two. And for as long as the pandemic is still infecting hundreds of thousands of people every day, the economy would remain crippled. It cannot yet start its full recovery until the pandemic is gone. So money printing out of thin air is still needed. Above-target inflation might remain to be a problem in the next few years. The relevance of Bitcoin is getting more and more obvious.

[amishmanish]

I am no fan of Biden, but he didn't start this mess.  Not that he's doing a damn thing to help it, but the problem was there well before he was even a presidential candidate. 

And yeah, inflation is ramping up and I'm afraid of where it's headed.  Hopefully wages keep pace with it, and hopefully the USD doesn't hyperinflate.  That's a lot of hope there.

Joe Biden was behind extending unemployment benefits until Sept. 2021, which means for over a year people got paid to stay at home and do nothing. That includes a time where vaccines were widely available.

He's already spent 1.25 trillion this year, and is proposing another 3.5 trillion in nonsense spending.

This is difficult to accept but quite right. The Democrats wanted to appear so distant to anything that Trump supported that they took an overly coddled view on lockdowns and the need for supporting people. In a lot of other countries, life slowly hobbled back as people took precautions and tried to solve COVID within communities and families. The US welfare state made it a country-wide problem even when it was not, just to appear to be "correcting" Trump's wrongs.

This lack of balanced approach means that the money printing was far beyond what would have been prudent. Now you never know that whether this was a mistake or an intentional action. US governments have used wars as excuse to raise money, maybe this time it was the pandemic. What is quite clear is that with all that money, almost every economy in the world has an influx of investment money looking for returns. If the economies can continue to perform, that money will be well spent and certain parts of the world as well as parts of the US may receive benefits. But can you defy the economic cycle set into motion with high inflation?

You probably can. High inflation is generally a push for investments. US has led the world into most of the technological revolutions, which have inevitably been money-fuelled. With the shift towards Electric, Automation, Space (even Mars exploration), this can well again be a time of high growth for the world's largest economy.

For once, i wish that Americans would stop being the bickering pussies they have become since 9/11. Its like these little effeminate kids bickering about Al-qaeda, bickering about their leaders, bickering about China and never really being able to come together to show the character they showed at the times of WW-II, Apollo missions and the computer revolution. From being inventors, explorers and go-getters, they have turned into these little bunch of teenagers stuck between old men like Biden and Trump. For the sake of everyone, Americans really should stop throwing airs and heroic CGIs in the form of DC/ Marvel universe and actually go back to figure out what actually made that country great. And make no mistakes, the USA IS a great nation. Its just that it has never had so many bickering pussies calling the shots at the same time. Blame youtube, facebook or whatever, but those people really need to dig deep and find their ideals back. Or else be pushed back to the status of being the largest producers of porn and stupid Tiktoks on Chinese apps.

[Kittygalore]

If you don't have any crypto though, and a substantial or considerable amount in that case, you're fucked because if inflation goes up and you still have fiat, you're money will have lesser purchasing power and remember that they're still fighting over increase in wages there and so far the pro increase wages is losing their foothold.

[Coyster]

I don't know if it's good news for Bitcoin enthusiasts, cause we all reside in one country or the other, Bitcoin is not at mainstream adoption yet, meaning fiat remains the most popular method of payment for most of us, if hyperinflation is the case in the country we reside in, then the cost of living goes high, prices of goods skyrockets, fiat currency gets devalued, thus whenever we exchange our Bitcoin back to fiat for one reason or the other, it affects us.

It is actually a good news for Bitcoin enthusiasts in this regard, bitcoin can easily be converted to with fiat, also bitcoin can be converted to fiat when needed fiat, the last thing I can never do is to hold my country's fiat which is even more depreciative than USD, I only have the ones I want to spend monthly with me. So if my country fiat has depreciated which is always the case, I gained when I am converting bitcoin to fiat.

My point is not that Bitcoin isn't a good hedge to fiat especially when it's facing serious inflation like it is now in most countries of the world, what I'm saying is, generally Inflation is not a good thing for us, even if we're Bitcoin enthusiasts/users, you wouldn't want your country's fiat currency to face hyperinflation, why because you'll still have to buy things with fiat even if you hold in Bitcoin, you'll convert back to fiat every now and then and would have to spend your funds, thus if prices of commodities are then high, you'll also still bear the brunt of it no matter how much gain you made hodling, a much better economic condition is even best for Bitcoin in my opinion.

If you don't have any crypto though, and a substantial or considerable amount in that case, you're fucked because if inflation goes up and you still have fiat, you're money will have lesser purchasing power and remember that they're still fighting over increase in wages there and so far the pro increase wages is losing their foothold.

We must not make people feel this way, I think with or without Bitcoin people will survive, Bitcoin is great in retaining the value of peoples funds, but there is quite a lot of problems in the world atm, with unemployment and all, this somewhat doesn't afford people the opportunity to think about Bitcoin or any other investment option for that matter. It's just like people who have the desire to start one business or the other, but lack the necessary capital to do so, if government can solve the problem of unemployment and tackle inflation, then people can prolly have enough to sort out their basic needs and still have that extra on top of it for Bitcoin or any other investment of their choice.