Where Bitcoin Stands during a Stagflation

[roadrunnerjaiv2025]

I learned a new word today--STAGFLATION.

It's the state of the economy in which growth is slow and unemployment is high while at the same time prices are rising.

STAGNANT ECONOMY + INFLATION.

Many countries, including the US, are currently struggling with this situation.

Cause: Uncertainty.

Many people, not just the low-earners, choose to temporarily cut down on their spending because they are bracing for another economic downturn. They are uncertain about the future of their employment or business, so they prefer holding on to what little funds they have.

Economic downturns are often associated with political performance. They are almost always pinned on the government, or at least the politicians currently in power.

As trust in the political system drops, so does trust in the financial system.  

People then look for an alternative. One that offers more security in times of crisis. Bitcoin.

Not only is Bitcoin digital (and therefore compatible with the digital economy, which we all know to be "the future"), but it's also scarce and traded through a blockchain (which is free from the controls of the financial system that people currently distrust).

[magneto]

Any inflation, regardless of how economic growth goes, is positive for bitcoin and crypto in general.

Decentralised cryptos in general is in a very sweet spot whereby it has its own growth prospects due to rampant adoption as well as being a hedge against fiat collapse. It has low correlation in the long run with the fiat economy also.

So totally agree with your sentiment & analysis here. Stagflation is a huge concern for everyone in the population and it's time to take it seriously by hedging with precious metals, crypto, and alternative asset classes.

[ajochems]

Bitcoin was standing in all way and in all the economic crisis.As we know their was a huge bitcoin selling due to the mean of the stagflation.Their was unique project will not had the correct way of dump.It was huge to green in the dump of bitcoin time.You need to learn how to hold bitcoin with the profit in all the situation.

[CaVO32]

Any inflation, regardless of how economic growth goes, is positive for bitcoin and crypto in general.

Decentralised cryptos in general is in a very sweet spot whereby it has its own growth prospects due to rampant adoption as well as being a hedge against fiat collapse. It has low correlation in the long run with the fiat economy also.

So totally agree with your sentiment & analysis here. Stagflation is a huge concern for everyone in the population and it's time to take it seriously by hedging with precious metals, crypto, and alternative asset classes.

If we will not be aggressive on how to fight this economic situation, we will find ourselves struggling, even finding difficulty on how to pay our bills on time. But today, I learned another word. Maybe, not yet hitting in everyone's dictionary but it makes sense. Also, this is the reason why we need to remember to diversify our portfolio. So whichever will be favorable on the situation we are in, we can always utilize them according to our needs.

[Darker45]

It's the state of the economy in which growth is slow and unemployment is high while at the same time prices are rising.

With this kind of situation, I don't think this applies:

Any inflation, regardless of how economic growth goes, is positive for bitcoin and crypto in general.

While inflation basically supports the argument of Bitcoin, it cannot totally insulate itself from its effects. Depending on how bad the situation is, Bitcoin might find itself facing slow adoption and low or even falling demand.

Confronted with a slow economic growth, high unemployment rate, and rising prices, people will not only control their spending, they might also lose their savings, and even forced to sell assets which could include Bitcoin. So with a dire economic situation, Bitcoin supply may overwhelm its demand and cause the price to fall.

[adaseb]

It’s hard to say.

Generally with stagflation it follows a recession. A recession is not good for stock market. Bitcoin follows the stock market now.

So it might go down however when the fed goes in and starts printing money, people will buy stocks and crypto again due to inflation fears.

So far it’s trading sideways and drifting slowly down. Much healthier than most other assets out there except commodities.

[Tytanowy Janusz]

People then look for an alternative. One that offers more security in times of crisis. Bitcoin.

Not only is Bitcoin digital (and therefore compatible with the digital economy, which we all know to be "the future"), but it's also scarce and traded through a blockchain (which is free from the controls of the financial system that people currently distrust).

Yea but its no so simple. Money was printed, it pumped financial economy (stocks, crypto) and than spilled into real economy making inflation. So inflation pump on financial assets was already in. Next 2-3 years of high inflation may already be priced in. Fed is now fighting with inflation highering interest rates sucking money from ... financial economy first than from real economy. So we see dump 50% of everything before FED doings will affect real economy slowing down inflatoin and creating disinflation. Unless Plunge Protection Team (PPT) will react.

What will bitcoin do in such situation? We never have stagflation in history of bitcoin but i guess it act like sp500 on leverage.

[Husires]

During periods of recession, people tend to sell what they have and focus on buying policies such as food and other things. Therefore, stocks will not be in their best condition, but mostly the recession will not last for long periods, and when followed by an economic recovery, prices will rise sharply and then it will be the best opportunity to buy Bitcoin at a low price before it rises significantly. insane.

Recession is bad in the short and medium term and good in the long term.

[mk4]

People then look for an alternative. One that offers more security in times of crisis. Bitcoin.

A lot of people assume this, but really, we're yet to see how bitcoin will perform overall. Yes, bitcoin is scarce and permissionless and all that — but it wouldn't matter much if only a small minority of people(us Bitcoiners) see these advantages. Obviously for bitcoin to perform well, a lot of people(money) should be in on it.

[el kaka22]

Best thing to do during these periods is not to cut spending because if there is inflation that means you need to buy it today, in order to not pay for it a lot more in the future. A 100 bucks debt today paid in 120 bucks in a year is better than not spending that 100 dollars, and having to pay 150 dollars because of inflation next year.

This is what we are living in right now, if you do not buy a thing today, you will have to pay a lot more next year for it, maybe not every nation has that high inflations but my nation does have that type of huge inflation. So buying everything right away, and then just paying the debt, is better than saving and buying next year.

[adaseb]

The issue I am seeing regarding inflation is this. Everybody is talking about the coming recession. However when you go out in public people are still spending money like crazy.

Gucci store is full, lululemon is packed, so is Apple store. Everyone is spending money, adding debt with rising interest even though they know there is going to be a recession sooner or later. Why is everybody being careless.

[mk4]

The issue I am seeing regarding inflation is this. Everybody is talking about the coming recession. However when you go out in public people are still spending money like crazy.

Gucci store is full, lululemon is packed, so is Apple store. Everyone is spending money, adding debt with rising interest even though they know there is going to be a recession sooner or later. Why is everybody being careless.

Though I'm not saying that we're definitely in a recession, to be fair — we don't really expect your typical day-to-day person to be aware of these kinds of things. The time they'll realize they're screwed is when it's already somewhat 'too late'.

[Don Pedro Dinero]

People then look for an alternative. One that offers more security in times of crisis. Bitcoin.

A lot of people assume this, but really, we're yet to see how bitcoin will perform overall. Yes, bitcoin is scarce and permissionless and all that — but it wouldn't matter much if only a small minority of people(us Bitcoiners) see these advantages. Obviously for bitcoin to perform well, a lot of people(money) should be in on it.

I agree. The most normal thing is that bitcoin is useful in periods of crisis but it depends on many factors, and if we take into account that it is permissionless but many people leave it on exchanges or platforms that do not even allow you to withdraw it, as we were discussing recently on the Spanish board, it is not clear that it is going to end up behaving as we assume.

[TheNineClub]

I learned a new word today--STAGFLATION.

It's the state of the economy in which growth is slow and unemployment is high while at the same time prices are rising.

STAGNANT ECONOMY + INFLATION.

Many countries, including the US, are currently struggling with this situation.

Cause: Uncertainty.

Many people, not just the low-earners, choose to temporarily cut down on their spending because they are bracing for another economic downturn. They are uncertain about the future of their employment or business, so they prefer holding on to what little funds they have.

Economic downturns are often associated with political performance. They are almost always pinned on the government, or at least the politicians currently in power.

As trust in the political system drops, so does trust in the financial system.  

People then look for an alternative. One that offers more security in times of crisis. Bitcoin.

Not only is Bitcoin digital (and therefore compatible with the digital economy, which we all know to be "the future"), but it's also scarce and traded through a blockchain (which is free from the controls of the financial system that people currently distrust).

Dude, you get merit from me because I learned a new word today, Stagflation. Now, regarding crypto and BTC as alternatives, I would argue that nothing mentioned will benefit crypto because its movement of it is still highly linked to the movement of the economy and the state of FIAT, and not in an opposite way to it, as when the economy is in distress, people tend to buckle down and not invest, and weather we like it or not, the majority of crypto investing is just because of investing itself.

[electronicash]

The issue I am seeing regarding inflation is this. Everybody is talking about the coming recession. However when you go out in public people are still spending money like crazy.

Gucci store is full, lululemon is packed, so is Apple store. Everyone is spending money, adding debt with rising interest even though they know there is going to be a recession sooner or later. Why is everybody being careless.

those who spend today are not aware of what is happening. buying gucci and other high price products means they're wealthy but inflation is already happening. Sri Lanka was affected the most. although we could blame them for the government's corruption, the country is really crumbling. somebody has to bail them out but every country today is also on the brink.

its real carelessness to spend money on unnecessary things these days but we are still betting on btc casinos

[Oluwa-btc]

https://www.forbes.com/sites/rufaskamau/2022/04/27/how-stagflation-could-trigger-global-bitcoin-adoption/?sh=306ba9764a73

This definition will be best explained here!
As the first world countries are headed towards stagflation. Hiking interest rates to inflation, loans will become expensive and stick markets will weaken. As investors will shift focus/ improvise to Bitcoin as a viable option for storing and preserving value over time.
As stagflation will hasten mass adoption of Bitcoin.