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

[Leviathan.007]

The inflation rate is actually not just rising in the US but it rising all over the world normally and due to the pandemic it's rising even, but comparing to the other developed countries the US is suffering more from it. As the inflation rate rises in the US the USD is becoming more invaluable, the other assets will gain more value over time, bitcoin is one of them, and due to the base of bitcoin and the market situation and the huge demand after spreading the word of bitcoin that's completely normal to see more demand and the price will rise as the result.

[kryptqnick]

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!

A couple of years ago I thought the dollar would collapse as a currency sometime in 2020-2021 (the world economic crisis was predicted to hit around 2020 even before Covid), and I thought that this would be the moment everything changes for cryptos because if the dollar falls, there's a good chance fiat will be discredited and people will want anything that would protect against printing money. Obviously, this didn't happen, but the inflation is on the rise, and I believe cryptos are gaining some ground because of this. But 5% isn't enough to alarm most people so much that they'd turn to something as highly volatile as Bitcoin.

[Victorycoin]

It offers a lot of good prospects but is a threat to other countries inflation lowers their country's economy a lot inflation on bitcoin is good for the united states, the fed's monetary policy goals include medium to long term interest rates price stability and maximum employment and each of these goals is aimed at promoting a stable financial environment. The federal reserve clearly communicates with the long term inflation target to maintain a stable long term rate of inflation which in turn maintains price stability.

[stompix]

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.

Zerohedge style, next year we're supposed to have the 69th crisis,  market crash, real estate bubble burst, and fall of the fiat system. I don't know why I'm confident 2031 will be the same, and the same actors will predict the same about 2032.

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.

He extended payments for people doing nothing, rather than changing the program to help those who truly need it. He blocked Keystone which would have erased growing oil prices, he is trying to cut the shale gas sector from financing and imposing a tax on them, driving prices higher, he is surrounded by people who think that everyone deserves everything without having to work.

They are all about taxing the people who work and giving all the money for free to those who don't, printing money as it's obvious you can't get 10 kilos of gold even if you kill a 5kg golden goose, and all the way talking about social and racial and sexual justice as the most important thing right now in the states is where a guy that was born female who now thinks he's a gay trapped in a lesbian body should pee.  The fleeing of companies from California to Texas should be enough to tell those people what taxes and regulations do to an economy, but nobody on their side will acknowledge they got it wrong.



But on the bright side (for us) I think this time the US crisis will not manage to draw Europe into one as it did a decade ago, so, you're digging your grave alone now, we're just building innocent sand castles compared to the US.

Also, interesting, Japan finally will manage to score 2%! inflation with the growing prices but they will achieve this target (yes, they are trying to have inflation) only in 2023 or 2024!

[Gyfts]

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?

My general philosophy is that never attribute malice where incompetency will suffice. It's entirely possible that politicians are dumb enough to wreck their own economy, or is it is possible they are using the economy to fatten their own wallets.

After all, when the US economy was shut down, and small businesses closed, large international corps like Amazon thrived, their stock skyrocketed. Wonder how many US politicians are shareholders of Amazon?

They never have to face the brunt of their actions, they just profit from their disastrous decision making while ordinary Americans suffer the consequences.

[Sterbens]

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.

Thank you for representing my thoughts with the words you gave. Well, this is how we are as one of the people who in the end are only struggling to be able to rise from the severity of the lockdown that has used all private land in order to survive. there is no solution that the higher-ups really offer other than a promotional offer from the drug business.

We pay for every stage 1 to stage 3 vaccination without exception with ongoing support. Never felt that this would be finished until the end of the year. We want all access to open immediately, we are at rock bottom and can't do much more than save families into isolation shelters.

The crisis is actually on the people, not on inflation, nor is it a loss for the high-ranking officials who manage the country. We are only victims of the ferocity of the rules which only make excuses for the sake of security and economic stability.

[Silberman]

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!

Unfortunately many people do not know what is happening, we can put it into precise words and terms but most people cannot do that, they can tell there is something wrong since everything is getting more expensive but they cannot put their finger on what is wrong, and while I am not worried as I know this works in our favor it seems that we will finally get to see the crisis that will put at risk the fiat system currently in place, but this will bring a lot of suffering as most people have no savings at all and the few that have them have those savings on fiat and they are about to lose all of those years of effort.

[Desmong]

Bitcoin has a big advantage when there is economy meltdown. Many leading country have start having one or two problem with inflation and deflation make the economy move from a start of stable flow of money to hardship where to buy things will require more money making it hard for the masses to move on the state of the economy.

[Sithara007]

Unfortunately many people do not know what is happening, we can put it into precise words and terms but most people cannot do that, they can tell there is something wrong since everything is getting more expensive but they cannot put their finger on what is wrong, and while I am not worried as I know this works in our favor it seems that we will finally get to see the crisis that will put at risk the fiat system currently in place, but this will bring a lot of suffering as most people have no savings at all and the few that have them have those savings on fiat and they are about to lose all of those years of effort.

There are both positive and negative sides (although as far as inflation is considered, the negatives will have a greater impact when compared to the positives). For those with no savings, they don't have to worry. Only if they have savings, they need to worry that the purchasing power of their assets will go down. If someone leads a hand to mouth existence, then he doesn't need to worry much about inflation. Because in most cases, the salaries will go up along with inflation (ideally). For the middle-class, it's bad though. They need to invest in assets that are protected against inflation to some degree.

[amishmanish]

--snip--
The crisis is actually on the people, not on inflation, nor is it a loss for the high-ranking officials who manage the country. We are only victims of the ferocity of the rules which only make excuses for the sake of security and economic stability.

Correct. Its the people who bear the brunt of inflation the most. Politicians, businessmen, officials, they all take it as part of their journey but the wage earners have to struggle with deprecation of the value of their assets while stock prices continue to rise. This is one of the reasons though that in a capitalist setup, you must be part of the market by owning balanced stock and equities.

All of that money eventually finds its way to the market and if you have a stake in it, however minor, it'll go up over time. Investment and financial access remains the only way for people to safeguard themselves in the long term. This is one of the reasons that I find Bitcoin and crypto to be a good thing. Learning about these gives you unhindered access to knowledge and information. Though this may soon change with whatever plans SEC seems to have.

[jaysabi]

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!

How does it affect bitcoin at all when bitcoin's volatility is several hundred times higher than the USD over any stretch of time?  I don't see the inflation rate in the US affecting bitcoin at all until such time bitcoin can actually hold value more predictably than the USD, and there's currently nothing in the history of either bitcoin or the USD that suggests this will ever happen in our lifetimes. 

[oHnK]

How does it affect bitcoin at all when bitcoin's volatility is several hundred times higher than the USD over any stretch of time?  I don't see the inflation rate in the US affecting bitcoin at all until such time bitcoin can actually hold value more predictably than the USD,

Maybe it will be too subjective if I still think that US inflation will affect BTC, because if people understand how the current monetary system is believed to have burdened them, especially those who have large amounts of savings in Fiat.  If they realize that there is no point in collecting and holding fiat for a long time for saving.  The time value of money that continues to fall will be less valuable than the highly volatile BTC.

[RealMalatesta]

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!

As long as we end up with something profitable in the long run, I do not care about inflation because I am in the crypto world. If we have inflation that devalues fiat BUT crypto goes down as well then it is a horrible feeling, yet if inflation devalues fiat yet we still earn even more from crypto than I am fine.

Interestingly I have been earning much more recently so I do not feel the pain of inflation at all, which is why I am quite happy to be in the crypto world. Let's just focus on what we can do with crypto and how we can improve and all those layer twos and threes and all that, and even get those first layers like ETH to grow bigger and faster and better, then we can be fine and inflation can't hurt us.

[Fortify]

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!

Everyone should be wary about gloating at higher inflation in other assets and currencies, because Bitcoin might not be the golden bullet that everyone thinks it is. What really happens when inflation starts creeping up? Peoples salaries cannot keep up with the increases of pricing of products or even housing around them. What does that cause them to do? Reign in spending and recall the money that they have invested in things like stocks/cryptocurrency/gold so they can actually survive with their spending. Then we slowly move into a recession and the effect keeps on multiplying which is why central banks were printing so much money to start with - trying to stabilize the economy from the last recession. It is a double edged sword, so be careful what you wish for as it might have unforeseen ramifications.

[teosanru]

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!

High inflation cycles followed by lower inflation cycles have really been a common part of our overall fiat inflation trajectory, obviously, inflation is imminent for Economic growth in fiat economy and it's obviously never going away no matter what. Also printing in COVID Times is really tough for the government but a necessity, while some people even on the forum shout that they should get a COVID stimulus from the government but when it comes to money printing they hate inflation, this is the very basic economics, if you want more money and pay fewer taxes the only resort is to print more money.

[Kyraishi]

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, for sure.

I'm very skeptical of Powell's sentiment that this inflation is going to be "transitory" in nature.

Until the Fed turns to tightening their monetary stance there is really going to be no chance of a recovery in the short term, in my opinion. Inflation is going to remain high at the 5-6% p.a. figure and speculative assets are going to trump other real assets.

[semobo]

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

Inflation acts as a catalyst to bring the bullish movement whenever the price is about to fall, keep HODLing will give more profits to the individuals which is enough for them to survive but not going to help the economy of a country much so people have to save themselves from the crisis if they want to survive.

[jostorres]

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!

This is for those who are still looking for the need to invest in Bitcoin. Is very bad that some people never know the importance of investing their money in assets like this. Times like this will always prove it to them that they are meant to be investing their money and not just keep on holding only Fiat. I have had a lot of experience like this, and that’s why I don’t really miss my chances of investing my money. I have been investing in Bitcoin for a very long time now, and apart from Bitcoin I have started to spread out into other types of investments and it has really helped me in times like this when fiat is losing its value.

[Haunebu]

This particular factor has helped popular cryptocurrencies like BTC soar over the years and this fact won't change in the future either, but it is a minor contributor in my opinion.

The major contributors in this context are supply and demand, government regulations etc.

it has really helped me in times like this when fiat is losing its value.

I disagree. FIAT will never lose its value. These currencies are more reliable and less volatile when compared to cryptocurrencies like BTC etc. This is a fact and will most likely never change due to our dependence on them.

[bryant.coleman]

How does it affect bitcoin at all when bitcoin's volatility is several hundred times higher than the USD over any stretch of time?  I don't see the inflation rate in the US affecting bitcoin at all until such time bitcoin can actually hold value more predictably than the USD, and there's currently nothing in the history of either bitcoin or the USD that suggests this will ever happen in our lifetimes. 

There is no requirement that an asset that is used as a store of value should be having stable exchange rate. The current exchange rate of Bitcoin is higher than what it had, anytime from 2009 to 2020. That means that anyone, who used Bitcoin as a store of value for at least 12 months ultimately benefited from it. But then if you are going for short durations, like a few weeks or even months, then gold or some other fiat such as the Swiss Franc may offer a better alternative. But for such short durations, you don't need to worry about the fiat inflation as well.