songyan0400 (OP)
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September 25, 2023, 02:30:36 PM |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation. In terms of amount, the ASCII computer file specifies only 21 million bitcoins released. As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
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Aanuoluwatofunmi
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September 25, 2023, 02:48:49 PM Merited by fillippone (1) |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. Yes bitcoin can protect one against inflation beca it does not work by the fiat economy system, bitcoin has a coordinated unmanipulated decentralized network with blockchain, this is not applicable in the cases of some other cryptocurrencies because they are not decentralized, inflation affect the fiat currency and the value is being affected over time due to government regulations and policies. Bitcoin puts a hard limit on the total number of coins that can ever be created. This is a good advantage why we gave a specific target on the amount of bitcoin to be mined and how this would have circulated among the people and remain in the market while it value always rises as people keep making demands on it even after the whole blocks had been mined.
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SquirrelJulietGarden
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September 25, 2023, 03:23:39 PM |
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Many currencies lose value as a result of inflation.
Currencies lose value not only because of inflation but many other reasons like weak national economy, political and social collapse that make future of the nation is chaotic and very grayish. Inflation is not the only reason and by that you can see, a national government can not simply stop printing more money to increase value of their national fiat currency. Many people believe that cryptocurrency can protect them from inflation.
If cryptocurrency you mean is altcoin, it's worse. Because minting new tokens into circulating and total supply is even more easily than printing more fiat currency. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation. In terms of amount, the ASCII computer file specifies only 21 million bitcoins released. As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
Bitcoin is different because it has only 21 million bitcoins in total supply but some altcoins have fixed total supply or even smaller than 21 millions but their values are less than Bitcoin or zero value. Because inflation or deflation is only one of component to make value. Bitcoin is unique because of its decentralized network, strong network, no censorship on on chain transactions, strong developer community etc.
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Hamza2424
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September 25, 2023, 03:26:12 PM |
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__SNIP__
OP I do agree that your account is brand new, still I think you have a clear idea about the basics of Bitcoin, So moving forwards the people who believe in Bitcoin that it will protect their actual value are not just because of the Significant role of the Supply as to fight against the inflation there is need of some other factors Bitcoin acquiring as well such as Future potential, growing market, Demand and Supply & Decentralization on some level the global first asset recognization (In context of the most trusted and No 1 Cryptocurrency). Bitcoin Does provide protection against Inflation, becasue of the gains on the investment and price appreciation by the market movement. Bitcoin supports both narratives as Inflationary properties and IDflationary it really depends how you check it out.
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ImThour
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September 25, 2023, 03:27:20 PM |
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Bitcoin has nothing to do with how any other Cryptocurrency behaves in any market for example what Ethereum does in none of the concern of Bitcoin however what Bitcoin does surely affects everything else in the market which shows the dominance which bitcoin have in the market from the start of the Crypto and I am sure, It will be there for a very long time and it's just a matter of time before we see some great profits on Bitcoin HODLings.
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Faisal2202
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September 25, 2023, 03:31:17 PM |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation. In terms of amount, the ASCII computer file specifies only 21 million bitcoins released. As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
I don't really understand what you are trying to ask here, because first you wrote cryptocurrency then you wrote BTC. Just to clear things out, in cryptocurrency, there are more than 20k tokens or coins but all of them can not be used against inflation. Means, that not every token or coin is deflationary and can be compared to the potential of the BTC. BTC is the king and is the deflationary coin, many legendaries might not agree with this statement, but for the understanding and a proven hedge against inflation, We can say it is a deflationary coin. You are totally about the scarcity of the BTC, due to it's limited and fixed supply, BTC is a great hedge against inflation. But not all cryptocurrencies are, because many crypto token and coins are increasing their supply over time, and can not be compared with BTC. I hope you understand my point.
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Bitco55
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September 25, 2023, 04:25:07 PM |
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Op, be a vivid example of what? Be a vivid example of the reduction of inflation?
In my own opinion, I don't think Bitcoin can protect anyone from inflation. You see when the word inflation comes up here, almost everyone on the forum goes to the loss of value and forgets about the consistent price rise. Whether you have bitcoins or not, the price of that thing you want is going to increase. Now bitcoins work to make sure that you don't feel the burn of that price increase, ensuring that your means of exchange is as valuable as what you want to purchase.
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TimeTeller
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September 25, 2023, 05:00:15 PM |
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Bitcoin has nothing to do with how any other Cryptocurrency behaves in any market for example what Ethereum does in none of the concern of Bitcoin however what Bitcoin does surely affects everything else in the market which shows the dominance which bitcoin have in the market from the start of the Crypto and I am sure, It will be there for a very long time and it's just a matter of time before we see some great profits on Bitcoin HODLings.
That is true, we can observe that in most top alts. They follow the market trend of BTC though not all the time. As sometimes there are also important events on the project itself, which drives good market performance. This is why in some instances, bitcoin has nothing to do with how a certain alt is behaving on a certain way. But as we have seen, up until now, no alt has toppled yet the position of BTC. Countless projects have tried though.
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mk4
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September 25, 2023, 05:12:01 PM |
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For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise.
It ain't that simple. We also need to see higher bitcoin demand for bitcoin's price to rise — because the scarcity itself is only half of the problem; the other half being demand. We can create as much scarce(or even far more scarcer) cryptocurrencies as we want but it would be pointless without demand.
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ZAINmalik75
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September 25, 2023, 05:24:53 PM |
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Op, be a vivid example of what? Be a vivid example of the reduction of inflation?
In my own opinion, I don't think Bitcoin can protect anyone from inflation. You see when the word inflation comes up here, almost everyone on the forum goes to the loss of value and forgets about the consistent price rise. Whether you have bitcoins or not, the price of that thing you want is going to increase. Now bitcoins work to make sure that you don't feel the burn of that price increase, ensuring that your means of exchange is as valuable as what you want to purchase.
I don't agree with you, because when we compare the inflation of 2010 with 2023 we can easily distinguish that BTC is a hedge against inflation. Let's understand it with an example, If you had $10,000 in 2010, and if you have BTC worth of $10,000 at the same time. Then tell me, will your $10,000 dollars in fiat be the same as of today? Can you bought as many products today as you can buy in 2010? The answer is no, you can not. Now compare the price of $10,000 worth of BTC bought in 2010, and now they would be worth $284,986,000 as of September 25, 2023, at a price of $24,000 per BTC. Now tell me, is fiat a good hedge against inflation or BTC? Think wisely.
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GeorgeJohn
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September 25, 2023, 05:28:19 PM |
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Bitcoin has nothing to do with how any other Cryptocurrency behaves in any market for example what Ethereum does in none of the concern of Bitcoin however what Bitcoin does surely affects everything else in the market which shows the dominance which bitcoin have in the market from the start of the Crypto and I am sure, It will be there for a very long time and it's just a matter of time before we see some great profits on Bitcoin HODLings.
You are right in your response because bitcoin is highest among cryptocurrency, so therefore I understand that bitcoin as cryptocurrency is something I know quite well that deals with the increment of other coins, ethereum, litecoin, doge, BNB their increment in the market doesn't yield anything in bitcoin even in newly established or introduced coins, but the aspect of bitcoin, its obvious that whenever Bitcoin increases any other coins get in touch of rising because it's bullrun affects other coins and it's bearish market leads some of the altcoins to get eliminated in the market, so therefore the volatility of bitcoin supercedes other coins in the market, take a look at any altcoins if they can get increase without bitcoin getting increased in the market, so that is the reason while I don't encourage people holding an altcoins that doesn't have a strong volatility, because their is every tendency that during a long period of bearish market many of them do not survive because altcoins doesn't get increased on it's own.
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SamReomo
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September 25, 2023, 07:15:40 PM |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation. In terms of amount, the ASCII computer file specifies only 21 million bitcoins released. As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
It's your first post and you shared some good things about Bitcoin. I think you have some knowledge about Bitcoin and you joined this forum to learn further about it. Yes, Bitcoin won't lose any value due to inflation of fiat instead it will get higher in value because it has hard limit of 21 million and every year some people lose Bitcoin. When supply is low and demand is high the value gets high and that's why Bitcoin will get higher in value after each four year. Although, volatility is present in crypto market and that will always be present, but still Bitcoin won't lose much of its value as compare to fiat. The main factor that works to increase the value of Bitcoin is the halving event that takes place every 4 years. During the halving event the number of Bitcoin decrease by half for each block that miners find and that's why it gets harder to find more Bitcoin due to half reward for each block. The investors always wait for halving event and soon after halving event we have bull market that increases the value of Bitcoin and all crypto-currencies. During bull market the investors get positive about Bitcoin and continue to invest in it as much as they possibly can. A few investors make a lot of money during the bull market. I recommend you to learn more about Bitcoin from this forum because it's the best source for the ones who are interested in Bitcoin. You should read topics in Bitcoin discussion board and from that board you will learn a lot of things about Bitcoin. The more time you give to this forum the more you'll learn about Bitcoin.
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Rruchi man
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September 25, 2023, 07:45:47 PM |
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As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
The popularity of bitcoins will increase its demand, and with a limited supply, the value will increase as well. It is a vivid example of a situation that will influence the price and value of bitcoins in the future. You did not express yourself so well@OP, so some forum members will find your topic and what you wrote down to be confusing. Welcome to the forum, you can do better ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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The Cryptovator
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September 25, 2023, 07:58:59 PM |
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If the current fiat ecosystem can't protect us from inflation, then I don't believe Bitcoin can. It's because Bitcoin isn't part of the fiat ecosystem yet. It's a digital currency that exists virtually and couldn't act directly in a fiat ecosystem. Still, we are unable to use Bitcoin for our daily lives; hence, we shouldn't expect it to protect us from inflation through Bitcoin. But if we are in Bitcoin and could gain some money from it, then it might help us survive inflation. We are earning something out of our real lives that could help us fight inflation.
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milewilda
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September 25, 2023, 08:09:50 PM |
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If the current fiat ecosystem can't protect us from inflation, then I don't believe Bitcoin can. It's because Bitcoin isn't part of the fiat ecosystem yet. It's a digital currency that exists virtually and couldn't act directly in a fiat ecosystem. Still, we are unable to use Bitcoin for our daily lives; hence, we shouldn't expect it to protect us from inflation through Bitcoin. But if we are in Bitcoin and could gain some money from it, then it might help us survive inflation. We are earning something out of our real lives that could help us fight inflation.
People should somehow realize these points on which it is really that something a realistic approach on which it is really that wise on having this kind of thinking rather than on making yourself believe that Bitcoin could save you up from inflation literally which as mentioned that it isnt really that on the ecosystem for it to be considered as a replacement on which it is really just that digital currency which its value is really that having the potential on increasing but of course there's a risks involved into that. It did really just turns out that there are people who do really goes into the point on which its not something that true or ideal anymore which makes them that too numb on whats around and whats the reality that they are missing. Its true that Bitcoin/Crypto could save up your @ss on this worse economy where it do involves with that nonstop or inevitable inflation with the current fiat system and there's no stopping with that and with this then it would really be just that normal that you should really be taking up some action for you to be able to survive or sustain.
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Beerwizzard
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September 26, 2023, 05:25:55 AM |
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Op, be a vivid example of what? Be a vivid example of the reduction of inflation?
In my own opinion, I don't think Bitcoin can protect anyone from inflation. You see when the word inflation comes up here, almost everyone on the forum goes to the loss of value and forgets about the consistent price rise. Whether you have bitcoins or not, the price of that thing you want is going to increase. Now bitcoins work to make sure that you don't feel the burn of that price increase, ensuring that your means of exchange is as valuable as what you want to purchase.
I don't agree with you, because when we compare the inflation of 2010 with 2023 we can easily distinguish that BTC is a hedge against inflation. Let's understand it with an example, If you had $10,000 in 2010, and if you have BTC worth of $10,000 at the same time. Then tell me, will your $10,000 dollars in fiat be the same as of today? Can you bought as many products today as you can buy in 2010? The answer is no, you can not. Now compare the price of $10,000 worth of BTC bought in 2010, and now they would be worth $284,986,000 as of September 25, 2023, at a price of $24,000 per BTC. Now tell me, is fiat a good hedge against inflation or BTC? Think wisely. Your point is completely about venture investing and not about saving. Back in 2010 BTC was a completely different asset from what it is right now. Then you should've been mentally sick to prioritize BTC over stocks and bonds in terms of savings. Also, it seems you don't fully understand the concept of hedging. If your portfolio can remain in a drawdown for a couple years then it is not actually hedging.
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Kakmakr
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September 26, 2023, 05:52:55 AM |
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Yes, scarcity is one of the factors that determine price, but as we saw with other Crypto currencies and Alt coins.... that is not the recipe for it's success. People should trust it enough to buy it (demand) and they should also use it as a currency for it to be useful. There are too many people buying bitcoins as an investment option and that are only good for the speculators and not for the future of the technology as a Currency.
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lombok
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September 26, 2023, 10:14:46 AM |
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#1 Many people believe that cryptocurrency can protect them from inflation.
#2 In terms of amount, the ASCII computer file specifies only 21 million bitcoins released.
#1 The system used and applied to BITCOIN can protect against inflation. This is proven by limiting the total supply and number of new coin releases using the halving system every 4 years. This strengthens the economic law of supply and demand. #2 It is true that in total there will only be 21 million bitcoins released. This total supply is not necessarily all circulating on the market, because there are also many cases of Bitcoin being stored in wallets but the owner dies, the wallet key is lost and the problematic wallet cannot be accessed by the owner. This of course reduces the circulating supply of BTC on the market.
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Gallar
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September 26, 2023, 11:49:38 AM |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. I consider this opinion very real and the facts are clear. The reason is that one of the crypto currencies called bitcoin has proven that all these opinions are true and not just empty talk. A simple example is the money invested in it. Even though the currency invested for example is subject to inflation, by saving money in bitcoin, the money is not affected at all. This is all proof that Bitcoin can indeed be said to be a store of value asset that is able to protect against inflation. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation.
Yes, one of these factors is what makes Bitcoin the best crypto asset and one of the factors that is able to maintain the stability of Bitcoin's value. Namely because the available supply factor can no longer be disturbed (21 million bitcoins). So with these factors, bitcoin can be said to be a very limited and very valuable asset, and can be categorized as a special asset. And, there are now several altcoins that are copying similar steps as applied to bitcoin (in terms of supply). This is indeed a good step. But even so, I think replicating Bitcoin's success will definitely be very difficult. Because you need to remember, it's not just about supply that makes Bitcoin as successful as it is now. However, there are other factors, such as a decentralized system. And in my opinion, this decentralized system is what is difficult for altcoins to imitate today. Because even though the supply of coins is limited, if it is still centralized, I am sure the results will not be as special as bitcoin.
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Woodie
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September 26, 2023, 12:16:41 PM |
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Many currencies lose value as a result of inflation. Many people believe that cryptocurrency can protect them from inflation. Cryptocurrencies will actually do some damage to a country as all foreign exchange will be going through crypto and not the local currency which could be the recipient . But honestly speaking, tackling inflation isn't a one factor that tackles all scenario, a country has to stimulate trade or in some instances, the central bank will have to try and make cash scarce to try and bring inflation down artificially which is a quite complex process on its own. Bitcoin puts a hard limit on the total number of coins that can ever be created. For example, as the growth of the money supply outpaces the growth of the bitcoin supply, the price of bitcoin will rise. Many other cryptocurrencies employ the same approach to limit supply and act as a protection against inflation. In terms of amount, the ASCII computer file specifies only 21 million bitcoins released. As a result of increased demand, the value will rise, possibly keeping up with the market and preventing inflation in the long run.
Considering the subject was in relation to a currency...Not sure if this is called inflation when you refer to Bitcoin and the effects of supply and demand, afaik to me this is mere volatility!
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