Inflation and Bitcoin's Potential Impact

[cxtreenal]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us. DCAing allows small investors to accumulate bitcoins at weekly or monthly basis which is a very simple process. Although I am a newbie investor here, the bitcoin price chart of the past years excites me. I'm more optimistic when I see that the impact of inflation does not affect the Bitcoin price as much.

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

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[kentrolla]

It works inversely as per experience because when there s inflation the value of other assets will be based on their local currency and we have seen some of them depriciating against the USD and we see more occurrence of this when compared with depriciation in value of USD itself. Hence I would say the investment we make in Bitcoin will be intact as it won't be calculated directly in USD or fiat but the amount of Bitcoin we hold and late it would be converted to our local currency which would have depreciated but you will get more of it when converted from Bitcoin. I am sorry if I am confusing you all i an trying the explain how we are safe with our investment in Bitcoin during the inflation but I think I have given very Uber level info which some of you won't be able to comprehend.

[Rockstarguy]

Inflation doesn't have any significant effect in bringing the price of bitcoin because bitcoin is different from, it is not controlled by the government. Bitcoin is volatile and it is decentralized in nature. The challenges of fiat is not a problem to bitcoin instead in the time of inflation people will prefer to invest their money in Bitcoin because bitcoin will protect the value of their money. I know bitcoin is a volatile asset  but it is better option for people in the time of inflation. Inflation is at the rise now, and cryptocurrency is one of the assets people consider now.

When fiat depreciates it is difficult for it appreciate back but even if the price of bitcoin falls it is still possible for the price to increase back with a better profit.

[Ruttoshi]

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

Inflation cannot affect bitcoin directly, because bitcoin is now a store of value and an hedge to inflation. As the value of fiat depreciates overtime, due to inflation, that is how the value of bitcoin increases overtime due to more people adopting it, and bitcoin has a limited supply of 21 million.

Government can print more money, but an additional bitcoin cannot be created to the 21 million bitcoin created by Satoshi. Inflation can affect bitcoin indirectly in the sense that when everything is expensive, people will no longer have enough that they can use to invest in bitcoin, but they will prefer to take care of their daily needs and forget about investing since they cannot afford it.

[Gozie51]

Inflation doesn't really have anything with bitcoin, they are separate channels. Inflation is usually a factor that affects the fiat currency and not cryptocurrency.  Bitcoin has a max supply and does not reduce in unit. So it is not a product of inflation as it is deflationary. Demand and supply interact with bitcoin direct so that it price could go up or go down but its unit remains the same unlike fiat that printing of more notes alone could be an original plan to increase the rate of inflation affecting products, goods and services.

[Alone055]

How much of an impact does inflation have on Bitcoin?

None.

Bitcoin is not directly or indirectly connected with the economy of a country, so I don't see any reason for Bitcoin to get affected by inflation or any other economic problem. It affects fiat because fiat is the currency of the country and when a country faces some problem such as inflation or anything else, the currency tends to lose value and lose purchasing power while digital assets and cryptocurrencies such as Bitcoin stay unaffected.

Some might think that inflation should affect the price of Bitcoin or other cryptocurrencies because other events such as wars, conflicts, and controversial statements regarding Bitcoin and cryptocurrencies do affect the market somehow, but that isn't how things work.
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Other events affect the price of Bitcoin or other cryptocurrencies because people often panic sell when they hear some bad news or rumors of bad news regarding Bitcoin and the market.

[South Park]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us. DCAing allows small investors to accumulate bitcoins at weekly or monthly basis which is a very simple process. Although I am a newbie investor here, the bitcoin price chart of the past years excites me. I'm more optimistic when I see that the impact of inflation does not affect the Bitcoin price as much.

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

There are several reasons for inflation to take place, while the inflation caused by an increase on the money supply does not directly affect bitcoin, as governments cannot create bitcoin at will in the same way they can create their fiat, and as such even if a temporary decrease on the number of goods you can buy with your bitcoin will happen, eventually the price of bitcoin should grow to reflect this new reality, however the inflation caused by scarcity or logistic issues will affect you, as the price of bitcoin will not grow in response to that kind of inflation.

[Nrcewker]

Inflation does affect Bitcoins, but not on a greater scale I must say. Yes unlike other commodities, its price will also go up, but not on a big scale I must say. The price will only get affected through its users. As we know that Bitcoins are limited in numbers, hence if the demand to accumulate it increases, then directly the price also goes up in a similar manner. This only can increase the price significantly.

[Gladitorcomeback]

Bitcoin's price tends to increase when there is an increment in the global inflation rate because people will start looking for alternative ways to store their money. After all, fiat currencies lose purchasing power when there is high inflation, and no one would want that to happen with their money, and those who know about Bitcoin will most probably choose it to keep their money where their money won't lose purchasing power and it might even grow in value over time if they stay patient.

Based on this scenario, the price of Bitcoin should increase during inflation unlike traditional currencies that tend to lose value in such economic situations. However, this isn't something guaranteed and it might not work this way but that is just my opinion about the topic.

[fuguebtc]

Bitcoin was created after the severe economic crisis of 2008 and with designs such as decentralization, finite supply... clearly Satoshi wanted to create an asset to combat the inflation that fiat money causes. But today bitcoin is being used as a speculative asset because of its high volatility, so whether we use it to effectively deal with inflation depends on each person. In the short term, bitcoin's volatility is not suitable for us to use it to fight inflation , but if we use it in the long term, bitcoin is even more effective than gold.

[moneystery]

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

Inflation cannot affect bitcoin directly, because bitcoin is now a store of value and an hedge to inflation. As the value of fiat depreciates overtime, due to inflation, that is how the value of bitcoin increases overtime due to more people adopting it, and bitcoin has a limited supply of 21 million.

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and that is why the price of bitcoin has the potential to increase quite significantly in the next few years with more and more people adopting it and the decreasing supply of bitcoin that can be mined by miners. in fact, it is not even possible that the value of bitcoin could potentially reach 100k or more, considering the large number of retail investors who are starting to be interested in entering the world of bitcoin and the increasing number of investment institutions that are pursuing bitcoin to diversify their investments.

[AprilioMP]

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

Inflation by definition is an increase in the prices of goods and services which results in less purchasing power [1].
The definition of deflation according to the source above is a decrease in the price of goods or the opposite of inflation.
The impact of inflation does have an impact on the price of Bitcoin but not too big because it is still in economics that the determination depends on demand and supply because the value of Bitcoin is not the same as fiat currency.

I think if I recommend this topic to you, I won't be wrong because this topic can be a reference to open your insight regarding inflation and the impact of Bitcoin.

[1]. https://en.wikipedia.org/wiki/Inflation

[ShowOff]

Inflation can affect the purchasing power of bitcoin among each person. You need more money to buy the same needs as before during inflation, meaning you have to pay more for every item you buy. This causes the budget you can set aside to be smaller or even run out of debt, so this kind of thing affects the purchasing power of bitcoin to be lower.

Does this apply to everyone? Of course not, but it certainly affects some people who just have a lower average income than others. While institutional investors and large investors prefer bitcoin and other store of value assets to keep their balance sheets healthy during inflation, so I don't really expect a significant impact either.

[GeorgeJohn]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us. DCAing allows small investors to accumulate bitcoins at weekly or monthly basis which is a very simple process. Although I am a newbie investor here, the bitcoin price chart of the past years excites me. I'm more optimistic when I see that the impact of inflation does not affect the Bitcoin price as much.

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

I disagree with you because bitcoin is not the only investment opportunity can someone will invest and also survive on the process let me educate some of you that thinks that investing in Bitcoin is the highest option and the easiest way someone can make money from my perspective under my own understanding consign in cryptocurrency I know quite well that the cryptocurrency is something that I know especially Bitcoin that it has advantages and disadvantages during its investment because the price of Bitcoin is not constant and it is unpredictable so investing in Bitcoin you are taking a risk because theirs every probability that price of Bitcoin can decrease in value moment in time

[cxtreenal]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us. DCAing allows small investors to accumulate bitcoins at weekly or monthly basis which is a very simple process. Although I am a newbie investor here, the bitcoin price chart of the past years excites me. I'm more optimistic when I see that the impact of inflation does not affect the Bitcoin price as much.

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

I disagree with you because bitcoin is not the only investment opportunity can someone will invest and also survive on the process let me educate some of you that thinks that investing in Bitcoin is the highest option and the easiest way someone can make money from my perspective under my own understanding consign in cryptocurrency I know quite well that the cryptocurrency is something that I know especially Bitcoin that it has advantages and disadvantages during its investment because the price of Bitcoin is not constant and it is unpredictable so investing in Bitcoin you are taking a risk because theirs every probability that price of Bitcoin can decrease in value moment in time

Because of the price volatility of bitcoin I would choose it. Even because of its decentralization system. You mention risk - relatively investing in bitcoin seems less risky to me as it is limited in quantity and will increase in demand in the future. It will be clear if you look at the past years. I won't make any predictions, bitcoin's past will enlighten you.

[justdimin]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us.

You can keep believing into bitcoin to hedge against inflation. Basically bitcoin falls into the category of 'alternate investments' like gold, you can diversify your portfolio with bitcoin when stock markets are not performing well due to more job cut and lesser demand to industrial production kind of situation due to inflation. During high inflation times, alternate assets are usually attractive for obvious reasons and bitcoin is one of the alternate asset to keep investing with.

relatively investing in bitcoin seems less risky to me as it is limited in quantity and will increase in demand in the future.

Bitcoin may remain less risky to you only when you opt for long term holding. Governments usually take measurements to bring inflation within control which may happen in short term and may trigger another round of higher inflation which will repeat in cyclic. But, you need to hold bitcoin for at least 3 years to get  profits higher than summed up depression in your life's needs caused by inflation in the same time period.

[AakZaki]

Bitcoin is a symbol of financial freedom, no one regulates it and even inflation cannot affect the price of Bitcoin. only supply and demand will affect bitcoin, because the supply of bitcoin is limited, bitcoin will become more valuable. look at how inflation is currently happening, Bitcoin is even continuing to accelerate and usher in a new ATH era. Beginner or professional investors who have entered into bitcoin have contributed in supporting bitcoin, buying and holding it and now more and more new investors are starting to enter making bitcoin even more hype.

[laijsica]

Bitcoin is a symbol of financial freedom, no one regulates it and even inflation cannot affect the price of Bitcoin. only supply and demand will affect bitcoin, because the supply of bitcoin is limited, bitcoin will become more valuable. look at how inflation is currently happening, Bitcoin is even continuing to accelerate and usher in a new ATH era. Beginner or professional investors who have entered into bitcoin have contributed in supporting bitcoin, buying and holding it and now more and more new investors are starting to enter making bitcoin even more hype.

I agree with you. Constantly increasing demand for bitcoin does not affect any other negative factors. New investors are turning more towards bitcoin due to the negative impact of inflation. I present myself as proof of this. I put bitcoin on my top list of best investments because the price historical price history and lack of huge quantity makes me more interested.

[cryptomaniac_xxx]

In this era of inflation when the price of every commodity is skyrocketing and the value of our domestic currency investments is decreasing. Desperation covers us as the damage continues to mount. In this case Bitcoin is the only hope for small investors like us. DCAing allows small investors to accumulate bitcoins at weekly or monthly basis which is a very simple process. Although I am a newbie investor here, the bitcoin price chart of the past years excites me. I'm more optimistic when I see that the impact of inflation does not affect the Bitcoin price as much.

What is your assessment and openion? How much of an impact does inflation have on Bitcoin?

I disagree with you because bitcoin is not the only investment opportunity can someone will invest and also survive on the process let me educate some of you that thinks that investing in Bitcoin is the highest option and the easiest way someone can make money from my perspective under my own understanding consign in cryptocurrency I know quite well that the cryptocurrency is something that I know especially Bitcoin that it has advantages and disadvantages during its investment because the price of Bitcoin is not constant and it is unpredictable so investing in Bitcoin you are taking a risk because theirs every probability that price of Bitcoin can decrease in value moment in time

Because of the price volatility of bitcoin I would choose it. Even because of its decentralization system. You mention risk - relatively investing in bitcoin seems less risky to me as it is limited in quantity and will increase in demand in the future. It will be clear if you look at the past years. I won't make any predictions, bitcoin's past will enlighten you.

I think the risk also involves security and safe practice. We have heard horror stories on how some individual gets rob of their Bitcoin, so it's not about our investment only, it how we are Be Your Own Bank (BYOB) sort of risk.

Of course, the design of Satoshi is truly amazing as every 4 years, we will see the supply getting halved and so the supply is dwindling but the demand is going to be high and this kind of protocol will survived inflation if we chooses to invest HODL and then sell at the right time with profits. And it's a formula that have work since the inception and there are a lot of crypto millionaires who simply follow that foul proof formula.

[redsun114]

Inflation doesn't really have anything with bitcoin, they are separate channels. Inflation is usually a factor that affects the fiat currency and not cryptocurrency.  Bitcoin has a max supply and does not reduce in unit. So it is not a product of inflation as it is deflationary. Demand and supply interact with bitcoin direct so that it price could go up or go down but its unit remains the same unlike fiat that printing of more notes alone could be an original plan to increase the rate of inflation affecting products, goods and services.

It can affect BTC but maybe not directly. It is when there are inflation, people can keep their money in some assets like crypto, to retain/recover its value and also to earn a profit. Bitcoin does reduce in unit. It is when they are being mined and also when they are halved which occurs every four years. This year is another schedule of it. This act is also another reason on why Bitcoins value can rise. I don't know if banks and governments can benefit if they intentionally raise the inflation rates. It's also dumb to think that printing more money will solve their financial issues. Inflation can still be caused by other factors not only it and they might be the main driver.