3x inflation in my life time (Im 30) does bitcoin fix this?

[hsdjkahskjdh]

A pizza now cost a full days wages when I first started working.  We need to hang the politicians and central bankers.

Min wage was $5.50 when I started it is $16.50 now.

In 15 years we have inflated 3x.

In another 15 years a pizza will cost $100.

how does bitcoin fix this?

inb4 some idiot mentions the bitcoin pizza and does not realize the price of that pizza still went up as well.

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[DeathAngel]

The bitcoin price was negligible in 2009 when the first block was mined so let’s use May 2011 as an example. The price was $8.81 at May monthly close. If you had $5,000 invested in bitcoin back then, you would have had  567.53BTC. Some simple math tells you that your $5,000 worth of bitcoin would now be worth over $15,000,000.
I think it’s safe to say that regarding inflation, long term bitcoin HODLING fixes this. Returns are naturally getting smaller as bitcoin gets more mainstream but it still beats inflation by far when HODLING long term.

[Nwada001]

how does bitcoin fix this?

I don't think Bitcoin has the right to fix this; it's not the work of Bitcoin to fix a country's inflation, nor is it the work of Bitcoin to set up citizens minimum wages. The high cost of living in a country, I believe, is basically dependent on the country's economy and currency devaluation. If the country's currency isn't devalued, I think there are very few chances of product prices going up.

Bitcoin can only be used as a payment system; there is no time Bitcoin is going to overshadow a country's local currency and replace it over time, if that's what you are asking about. I no Bitcoin has all the features that can make it a generally accepted currency, but its limitations won't allow it to be a nation's stand-alone currency. One of those limitations is that you can't conduct a complete trade with Bitcoin for goods without the use of the internet.

I see Bitcoin as a currency that gives Bitcoiners full control over their funds and assets; taking care of a country's economy and minimum wages are not part of what I see in it. It's left to the country's government to fix their own problems. Bitcoiners have theirs..

[OgNasty]

Bitcoin doesn’t fix inflation. It is supposed to function as a means of opting out of the inflationary fiat system. Maybe one day in the distant future if it were used in every aspect of an economy and functions properly without incentives like the block rewards it could possibly help, but population growth and managing currency values is a tricky tightrope to walk.

[ZAINmalik75]

In another 15 years a pizza will cost $100.

how does bitcoin fix this?

It's almost true that inflation raised the price of daily routine needs and it's confirmed that this unlimited paper money supply will soon runied entire system. Basically Bitcoin can't fix or save any country currency from inflation but by transferring your wealth into Bitcoin will save your assets from inflation.
Because Satoshi the founder of Bitcoin know that in future inflation will runied each and every fiat, so he put such point in mind during creation of Bitcoin and make a fixed supply of Bitcoin in order to fixed inflation problem and add an event of halving which occurs after every four year to reduced the supply of newly Bitcoin which directly reduced circulating supply as the demand raised continuously which push Bitcoin price to the sky and thus price work....

[stompix]

how does bitcoin fix this?

It doesn't!
Bitcoin won't keep pizza from reaching $45 and then $135 if we're doing x3 or x5 or whatever, it will simply allow you in best case scenario (again, there is no guarantee for this) that the satoshi you bought for $15 will be enough to buy you a $45 pizza. Nothing more.

A pizza now cost a full days wages when I first started working.  We need to hang the politicians and central bankers.
Min wage was $5.50 when I started it is $16.50 now.

Before you hang politicians or anyone else, do a fair comparison.
How many pizzas could you buy with your wage then and how many can you buy with your age now?

I think it’s safe to say that regarding inflation, long term bitcoin HODLING fixes this. Returns are naturally getting smaller as bitcoin gets more mainstream but it still beats inflation by far when HODLING long term.

Then why did you go to 2011, split the last 10-year period in half, and see how big the returns are, you're making 100x in the first 5 years and just 4x in the other five based on yoy numbers, it's enough for a person to go by, let's stop selling Bitcoin as a millionaire making machine.

[BlackHatCoiner]

how does bitcoin fix this?

Bitcoin per se can't fix this. While it gives a better interest (as capital appreciates) over the years, inflation will continue as long as there's reckless money printing, debt raising, and government spending.

The entire "Bitcoin can fix inflation" argument is (very) partly correct. For inflation to calm down, introducing Bitcoin-friendly legislation in every part of the world would probably result in scaled-down economy at first. I'm not a economist, but this kind of legislation would virtually limit the government abruptly. Sounds quite extreme to go from one endpoint to the other overnight (and I'm pretty sure it'd suck either).

How many pizzas could you buy with your wage then and how many can you buy with your age now?

I can answer that. About 5 years ago, I could buy a family-sized pizza for €12-15. Now, it costs me at least €20. That's more than a quarter of my pizza eaten by whoever is liable for this (probably politicians, though).

[Victorik]

This is a sad reality but unfortunately, the politicians do not care and will only do what suits them and them alone.
BTC will not fix the inflation in your economy, because not everyone will embrace it.

[The Cryptovator]

What are your expectations regarding Bitcoin? It's important to note that relying solely on Bitcoin to fix inflation is not feasible. Bitcoin cannot solve all problems on its own. Bitcoin is a cryptocurrency known for its high volatility, which can be advantageous if approached strategically. Investing in Bitcoin can potentially yield profits, but it's crucial to understand that it doesn't guarantee consistent gains. There are instances where the price may plummet, leading to financial losses. Therefore, it is imperative to thoroughly educate yourself before considering Bitcoin investment.

[DannyHamilton]

inb4 some idiot mentions the bitcoin pizza and does not realize the price of that pizza still went up as well.

Ok. I'll be that idiot.

Whether or not the price of that pizza went up depends entirely on what currency you are using.

If you are pricing it in Bitcoin, then the price of one of those pizzas on the day of the famous transaction was 5,000 BTC (500,000,000,000 sats)
Today, you can purchase an equivalent pizza for about 0.001258 BTC ( 125,800 sats).

That looks like the opposite of inflation to me.  In terms of the amount of Bitcoin that you need to spend to get the same pizza, it's MUCH MUCH less.

[odolvlobo]

It is hard to say how Bitcoin would affect inflation. Bitcoin has a fixed supply so there is (or will be) no money-printing. However, while money-printing is a major factor of inflation, it is not the only factor.

Another factor is fractional reserve banking, which cannot be prevented by Bitcoin. FRB a limited form of money printing and contributes to inflation.

Another factor is the efficiency of the financial system. A Bitcoin-based system would be more efficient and contribute to inflation.

A factor unrelated to Bitcoin is productivity. Increasing productivity contributes to deflation.

[franky1]

A pizza now cost a full days wages when I first started working.  We need to hang the politicians and central bankers.

Min wage was $5.50 when I started it is $16.50 now.

In 15 years we have inflated 3x.

In another 15 years a pizza will cost $100.

how does bitcoin fix this?

inb4 some idiot mentions the bitcoin pizza and does not realize the price of that pizza still went up as well.

if you put say $8 into bitcoin in 2012 instead of buying a pizza
right now your would have $27k meaning 1500 pizza's in todays value

[mendace]

You're asking Bitcoin to fix inflation when that's not its purpose. Bitcoin is a digital payment instrument, which cannot be governed by anyone but cannot solve these types of problems and by its nature it is deflated. But for once I want to row against Bitcoin because unfortunately I think it is not possible to have an entire planet that adopts Bitcoin as a means of payment because its true nature of digital scarcity does not make it suitable, on the contrary it would create more poverty than the current one and the states could not print their money out of thin air anymore.

[Upgrade00]

Bitcoin cannot fix inflation or the economy, that is the job of the fiscal policy makers. What Bitcoin can do it give you an option to hedge your funds, so if inflation hits and fiat losses value your Bitcoin grows against it as it retains its own value. Bitcoin gives you that freedom to not be entirely dependent on the current banking system but have the liberty to use a fully decentralised asset.

While I he money printers are working overtime you start building your Bitcoin stash.

[Z-tight]

how does bitcoin fix this?

Inflation is everywhere in the world right now and governments are working to fix it, but BTC cannot influence the overall value of your nations fiat currency, but if you individually want to protect your money from losing value, you can buy BTC and hold it. So many people accuse the government and believe that inflation is caused by their actions, in that case how does a decentralized currency influence the actions of a government.

The only way BTC can fix this is if you limit your commitment to this centralized system that's causing inflation, by moving a lot of your funds into BTC that's censorship resistant and permissionless. Since BTC cannot be printed out of thin air, maintains a fixed supply and can only be mined ~ 10 minutes on average, its value will go up in the long period, so it is a good currency to protect your funds from inflation.

[drwhobox]

Bitcoin is not supposed to fix inflation, if you have 5$ worth of bitcoin when a pizza cost 5$, if its 3x your bitcoin probably can cover the pizza price. It is your government who is the culprit to not increasing the wages with the uprising pizza price. You don't fight inflation with bitcoin but if you are smart enough to invest in bitcoin the value will be more than your fiat is.

[BitDane]

how does bitcoin fix this?

Bitcoin is not created to fix the inflation. It is created to be a medium for boundless transaction without any intermediary.  Bitcoin is created to address centralization, fraud and censorship.  It is not a fix all pill that solve all problems.

The creation of Bitcoin is a response to the great financial crisis and the financial world’s reliance on banks as intermediaries of all financial transactions[1].  So I think it is not about solving inflation but rather making each person independent from traditional banking system.




[1] https://financialgym.com/blog/2021/1/2/bitcoin-101-what-is-bitcoin-and-why-was-it-created

[uneng]

Bitcoin fix this in the sense the more money you save (in BTC currency), more pizzas you will be able to acquire on long term, while when saving fiat currency, the less pizzas you are going to be able to buy futurely.

The lesson is: avoid saving fiat. Or you put it in good use, or you invest in BTC, but never hold fiat for too long, otherwise you are going to be overcome by inflation. I just feel unconfortable for those elders who have been saving their wages for their entire lives below the bed, thinking to be doing a good business.

[blockman]

Inflation is like the arch nemesis of the entire world, there's no way to defeat it. And as the year passes by, the inflation rate will just gonna keep on rising even if the economy is doing well. Is bitcoin fixing inflation? I guess it's just for individuals because it's a deflationary asset so as the inflation keeps going up, the value of it will rise as well and that's how it will keep it but it's not gonna solve it for the entire world's problematic issues like inflation.

[robelneo]

A pizza now cost a full days wages when I first started working.  We need to hang the politicians and central bankers.

Min wage was $5.50 when I started it is $16.50 now.

You did not mention where you are located or the country where you are, but your situation is very much the same here in our country, the worker's salary cannot keep up with inflation and an average worker here in our country needs additional work after the office hours to be able to keep up with the growing prices.

In 15 years we have inflated 3x.

It's bound to happen in third-world countries, even first-world countries experience inflation but they can handle it better than workers in the third world.

In another 15 years a pizza will cost $100.

It depends on where you are buying a pizza, if you're buying it in a first-class restaurant where a chef is the one creating the ingredients and design, but if it is only in your neighborhood you can get it way cheaper.

how does bitcoin fix this?

The solution is managing your expenses, adding more skills that pay well, and investing in Bitcoin, it's not on Bitcoin but on how you manage your earning and find a job that pays well commensurate to your skill and investing in Bitcoin of course, first thing first and that is fighting inflation through your ability to earn more.