Bitcoin can fight inflation?

[Flyingjack123]

The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .

Can someone help me to understand this further

Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/

[The Cryptovator]

No, I don't think Bitcoin could or should fight inflation. Bitcoin isn't out of the global economy. So the global economic collapse for any reason, Bitcoin wouldn't prevent. Bitcoin is a highly volatile cryptocurrency it can't make a stable global economy anyway. Don't expect too much, Bitcoin would be a great store value for the future and would keep a major role in the global economy. But can't fight inflation. Bitcoin itself is decentralized and no one can control it.

[dothebeats]

It does not fight it, it just helps soften the blows to people who already has it. It was never meant to be a solution to economic problems and save everyone in the first place. Even bitcoin loses a ton of its value during bad economic conditions, so I'm not sure how people still believe that it does not and will not lose its value and be a solution to inflation.

Keep some bitcoins and help yourself, but do not expect that bitcoin can retain that value 100% of the time. It's not a magical object that is immune to anything negative, it has its flaws too, so better stop believing that it's here to always save the day.

[hugeblack]

Do you mean global or local rates or related to individuals? Inflation is due to several reasons and to hedge them, several things vary from gold to silver to real estate and Bitcoin, and therefore knowing the causes of inflation will help in choosing the ideal tool.

As for the solution, it cannot be done without diagnosing the issue.

[darkv0rt3x]

No, I don't think Bitcoin could or should fight inflation. Bitcoin isn't out of the global economy. So the global economic collapse for any reason, Bitcoin wouldn't prevent. Bitcoin is a highly volatile cryptocurrency it can't make a stable global economy anyway. Don't expect too much, Bitcoin would be a great store value for the future and would keep a major role in the global economy. But can't fight inflation. Bitcoin itself is decentralized and no one can control it.

You're talking in a short period of time, right? Otherwise, why can't Bitcoin be part of the global economy? It already is part of it. Small part, but it already is part of it! Bitcoin is not meant to prevent any collapse, is meant to replace the collapsed system. And it is still volatile just because there is still not enough liquidity to be able to absorbe the bigger transactions, that's all. We need to give it time for adoption, education, etc. Bitcoin is and will still be perfect for storage of value and also as a global economy. Don't forget that LN is part of the Bitcoin ecosystem.

[sklopan]

I think yes. In general, I think that bitcoin made such a peak for the reason that the market is also not in the best situation now. But, we will see the result soon, I think.

[virtualdn]

Yes. Actually it's the only thing which will fight inflation, now and in 10 or 20 years. This is why I like keeping money in BTC and not in crappy fiat. Fiat is doomed, no matter how much you have. If you cash out to fiat buy a house, a property or something but never keep money in fiat, even in the banks, those money are losing value day by day.

Many people don't see the BTC potential here, but hey, not everybody can win right?

[edgycorner]

The article in your post is garbage(no offense to you ofc). It tries to convince us that Bitcoin is a good investment to mitigate inflation, but it doesn't talk about its volatility even once.

It's trying to say that Bitcoin is a good investment because it's immune to inflation, but in the same breath, it admits that Bitcoin's prices swing up and down based on people's opinions  .
So if you're thinking about investing in it to save yourself from "inflation", you'd better be prepared to ride the roller coaster lol

[TheNineClub]

The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .

Can someone help me to understand this further

Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/

Bitcoin should not and can not fight inflation. It's not the solution for underlying economic issues and is connected to the economic fluctuations such as inflation (as in it will feel it's negative effects). And BTC is still in it's infancy, it's not ready nor it can solve all of the economic issues.

[hatshepsut93]

Inflation is the increase of prices. Even if we imagine the most impossible scenario that everyone, including governments, switched to Bitcoin, inflation could still happen. Things like food or gas could still go up in price as a reaction to global events. Government and banks could still inflate supply of Bitcoin by creating debt and using some Bitcoin IOU tokens instead of real Bitcoin transactions, including LN.

[franky1]

Inflation is the increase of prices. Even if we imagine the most impossible scenario that everyone, including governments, switched to Bitcoin, inflation could still happen. Things like food or gas could still go up in price as a reaction to global events. Government and banks could still inflate supply of Bitcoin by creating debt and using some Bitcoin IOU tokens instead of real Bitcoin transactions, including LN.

ln msats
liquid Lbtc
binance wbtc
etc

they all will de-peg when they reach a x% userbase threshold.. its a waiting game of when not if...
and it wont need government intervention to cause it. the loyalists of the altnets will happily do it to themselves in  efforts to make their altnet appear more utilised

[teosanru]

The rising inflation is becoming a big problem and macroeconomic conditions are worsening.
I want to know if bitcoin can in help us to fight inflation
I came across this article, which says that the decentralised nature of bitcoin and the limited supply of bitcoin can actually help it to retain its value over longer time and thus it can actually help us mitigate inflation .

Can someone help me to understand this further

Link to the article:
https://guardian.ng/features/how-bitcoin-can-mitigate-inflation/

I think inflation as a problem is real and obviously there is no better solution for inflation than a deflationary currency, but I am curious even if bitcoin is implemented how will inflation go from our lives? Basically inflation is when the prices of the commodities are increasing thereby increasing the percentage of expenditure we do on a certain commodity. I think after bitcoin our percentage of expenditure would still remain the same as the price of the bitcoin will increase we will eventually get lesser income in our hands which too will be sort of an inflation in itself just something absolutely reverse. So how will this problem get solved?

[pooya87]

It both can and it can't.
Technically because bitcoin has limited supply it should not have any sort of inflation and its value should be stable. But the problem is that we are not yet at mass adoption levels which means the price is very volatile. On top of that we have a small market that can be manipulated at times. For example we saw how the recent crash took place due to panic sell and market manipulation.
Good news is that this is short term. In the long run the price is not affected by short term fluctuations or even crashes so the effects of inflation (in fiat) is well covered if you own bitcoin.

[Despairo]

You need to think how the Bitcoin use cases and advantages first rather than think Bitcoin as a weapon to fight against inflation, help the poor, to become billionaire etc, because this will harm your mindset to think Bitcoin as a money making tool only. Bitcoin isn't created to fight against inflation, it also not fight against fiat money, not a charity to give away free money to poor people and not a quick profit like a shitcoins.

What you need to know is Bitcoin doesn't have a burn mechanism to reduce the supply and the supply is limited not like fiat money, while fiat money who always face inflation have burn mechanism and not limited supply.

[Gyfts]

No, I don't think Bitcoin could or should fight inflation. Bitcoin isn't out of the global economy. So the global economic collapse for any reason, Bitcoin wouldn't prevent. Bitcoin is a highly volatile cryptocurrency it can't make a stable global economy anyway. Don't expect too much, Bitcoin would be a great store value for the future and would keep a major role in the global economy. But can't fight inflation. Bitcoin itself is decentralized and no one can control it.

Bitcoin isn't supposed to prevent an economic crash. It can prevent inflation because the supply is finite, and deflationary by definition.

The current inflation of most currencies in the world are cause by the Ukrainian war, but not solely due to the war. A lot of the inflation was due to money printing in 2020 where the government though of the genius idea to pay people to stay home for a disease that has a 99.5 percent survival rate.

You think if a country's currency was Bitcoin only, they would elect to enforce lockdown measures? The only reason lockdowns were affordable was because most governments thought they could borrow from themselves (aka money print) and make up for it with future economic growth. Problem is, the economic growth fell behind and wage increases are unable to keep up with inflation.

Bitcoin could have prevented all this.

[Pmalek]

What you need to know is Bitcoin doesn't have a burn mechanism to reduce the supply and the supply is limited not like fiat money, while fiat money who always face inflation have burn mechanism and not limited supply.

Bitcoin has burn addresses. You can send BTC to these addresses but no one owns the private keys to spend from them. So that's Bitcoin's burn mechanism. You can google Proof of Burn or Bitcoin burn addresses for more information if you want.

I remember that someone said that some of these burn addresses were created by altcoin developers. I guess the goal is to remove a certain amount of BTC from the circulation to mint an X amount of altcoins. 

[so98nn]

For me bitcoin is just another dimension asset which is flourishing in its own universe. It has got no business to do with fiat system so it disconnect itself from that paradigm for sure. I also think it won’t help fight the inflation but we can use it overcome the financial challenges. I mean if we are going with the formula of one bitcoin equal one bitcoin (no dollar) then it’s surely gonna help “escape” it. Like the gold where we could rely on its revaluation in the future bitcoin can be used for future asset keeping.

[Flyingjack123]

Yes. Actually it's the only thing which will fight inflation, now and in 10 or 20 years. This is why I like keeping money in BTC and not in crappy fiat. Fiat is doomed, no matter how much you have. If you cash out to fiat buy a house, a property or something but never keep money in fiat, even in the banks, those money are losing value day by day.

Many people don't see the BTC potential here, but hey, not everybody can win right?

Exactly this is what I believe that while the value of Fiat is going to remain the same. The value of bitcoin keeps on increasing year after year, and anyone with bitcoin in pocket need not to worry for its devaluation

[ChrisPop]

What is inflation anyway? An increase in prices of products & services related to a certain currency.
Gold is renowned as the best inflation-hedge humanity had. In US this year's inflation is about 10-15% if I remember accurately. Did Gold increase with that amount? --> Heck no. It is a lagging indicator. People will choose to save in Gold because it is durable and has been historically used to store value by banks and states. So.. you see.. the society has a memory.

Bitcoin is still not mature enough to be stable during economic recessions because many people still view crypto as a risky asset. This is due to it being a rather new asset. We had Gold for thousands of years. Bitcoin is only here for about 13 years, BUT the adoption is rising, institutions are starting to integrate it.

I'd say that Bitcoin can be used to fight inflation, but only for the long-term. I find it useful to think of money as energy.

[Lucius]

If someone invests in Bitcoin over say 5 years, then from today’s perspective he can say that he outsmarted the system and in some way diminished the impact of inflation on his daily life. The example of a person who bought 1 BTC in early 2017 for about $1000 shows us that this person could have profited even x69 if he sold at the peak, but even a solid x20 if he would have sold the same BTC today.

In the long run, it makes sense to keep your valuables in Bitcoin, and in moments of crisis that will surely occur at least every 10-15 years, fiat will lose its purchasing power much faster than Bitcoin. Therefore, I would say that it is possible to fight inflation with the help of Bitcoin, but not in the way that some people think - Bitcoin is not magic money that will solve all our problems overnight.