Inflation and Bitcoin's Potential Impact

[Jating]

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?

You can to look at it, Bitcoin has limited supply isn't it, that alone shows how Bitcoin price is going to move, more demand, less supply=prices go up, basic economic law. And with that it means that as a commodity, it is being look at a hedge against the inflation because of how Satoshi design it.

So if there is a impact, it is that people should invest or put their wealth on Bitcoin easy as that. They can fight that inflation as prices of Bitcoin are going up every 4 years, new all time high are set and so our money are not only safe guarded, but multiplying because of how it is design.

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[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. 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?

You can to look at it, Bitcoin has limited supply isn't it, that alone shows how Bitcoin price is going to move, more demand, less supply=prices go up, basic economic law. And with that it means that as a commodity, it is being look at a hedge against the inflation because of how Satoshi design it.

So if there is a impact, it is that people should invest or put their wealth on Bitcoin easy as that. They can fight that inflation as prices of Bitcoin are going up every 4 years, new all time high are set and so our money are not only safe guarded, but multiplying because of how it is design.

I feel like if people want to fight inflation, first battle should be against their income and not their investment. If inflation goes up, and they are making either same amount of money or still less than what inflation is, then they are getting poorer. In a nation with 10% inflation, if someone gets 5% raise on their salary, they didn't get a raise, they actually get paid less than they used to get paid.

This is why I think the first fight should always be against their income, and they should find a way to make more money. However, I agree that second should be investing that money into bitcoin because they are going to make a lot of money from crypto if they do that, and it is not going to be easy but eventually when they have enough, they will realize that they got richer thanks to this decision.

[Nothingtodo]

It is natural that inflation will occur if the price of goods increases continuously. Inflation rate of a country indicates the economic condition of that country. But it is not possible for me to predict how much Bitcoin can be helpful in reducing the rate of inflation in a country. However, Bitcoin and cryptocurrency can be an important helper in reducing the inflation rate of a country because in this case the supply of Bitcoin is limited and due to this limited supply, it will not be possible to supply as per the demand in the market as a result of which the automatic inflation will decrease.

[Zanab247]

BTC investors don't worry too much like the way other business men and women use to worry about inflation in their businesses  because bull run use to happen in the season of inflation for BTC investors to accumulate profits that will reach them to embrace another opportunity in the future.

It was a great opportunity for those that bought BTC last two years and hodl till last month before selling, and they have achieved what will make them not to experience  inflation.

If you have not invest in BTC this season, I will advise you to look for money or save some money to buy BTC because the price has dumped to $57k today, and it will help you not to follow other people in your country to experience inflation because the price of BTC can pump at any time to help hodlers to earn good profits.

[Maus0728]

Bitcoin's not that giving out a significant impact to the inflation of many countries because if it did, we would've known about it and economists all over the world would be talking about it, the problem is that bitcoin investors and hodlers don't make up a large percentage of the population of the world so even if there's a million of us, there's really not a lot of things that we can contribute to the reduction of inflation of our respective countries, maybe the best thing that we could've done about all of this is that we aren't always zero balance because we're hodling bitcoin.

[EarnOnVictor]

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?

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

[blckhawk]

The price of bitcoin doesn't have any kind of impact to the inflation, the products increase in prices aren't even remotely connected to the price of bitcoin going up or down. Unless of course there's a study out there that will correlate it but for now, I do think that it's not the case. @Maus0728 is right, we would've known about it's significant impact if people in the position to talk about it without sounding like they don't have a clue what they're talking about are talking about bitcoin and it's impact to the economy but that seems to be not the case on this one so I'm sure that there's probably some way that it impacts the economy of a country or the inflation of the country but it's probably on the individual scale.

[Dump3er]

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?

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

Well explained and the question is whether Bitcoin acted like a hedge against inflation because people saw it like a hedge or whether Bitcoin had this amazing development because it was a new technology. I still think it has hedge potential because it has good chances to continue to grow. But I remember when the crisis hit in early 2020, it seemed to cause uncertainty among people as to whether or not it would be the right decision to hold Bitcoin. To put it differently, if a crisis hits really hard, would people find themselves forced to liquidate an asset like Bitcoin in order to pay for whatever they have to pay in life? Mortgages, insurances, rent, food, car repairs etc. I think for those who can afford to hold Bitcoin, it is an excellent asset to hold as a counter to inflation because of its growth potential, but there will be people who may choose to liquidate Bitcoin first when they get into trouble.

[tygeade]

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

I do not think that it would be impossible, it is just taking sometime to get back to ATH levels, but look at how much we increased in the last year. Remember, this coin was under 20k for a while, I think the bottom hit somewhere close to 15k or 16k whatever, which means that we are still four times higher than that even with the current situation.

People look at the top, but they never calculate the bottom and the reality is that compared to the bottom we are doing a lot better right now, that is all that should matter. I personally believe that we are going to have some trouble one way or another, and shouldn't really be doing anything bigger than that. Just focus on the benefits that we had, maybe you and I couldn't, but the general market went up a lot.

[Iranus]

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

I do not think that it would be impossible, it is just taking sometime to get back to ATH levels, but look at how much we increased in the last year. Remember, this coin was under 20k for a while, I think the bottom hit somewhere close to 15k or 16k whatever, which means that we are still four times higher than that even with the current situation.

People look at the top, but they never calculate the bottom and the reality is that compared to the bottom we are doing a lot better right now, that is all that should matter. I personally believe that we are going to have some trouble one way or another, and shouldn't really be doing anything bigger than that. Just focus on the benefits that we had, maybe you and I couldn't, but the general market went up a lot.

But not everyone can buy bitcoin for less than $20k and there are new investors entering the market, some have bought for $70k. Not to mention currently bitcoin is correcting and there is no guarantee that it will recover and rise again.

I agree with what EarnOnVictor said, don't invest in bitcoin just because of its history because things are changing with time. In the past, we have seen bitcoin increase by 1000%, 10000% and more. But I think that won't happen anymore because things have become very different, bitcoin has become bigger to be able to bring us such big profits.

In addition, to solve inflation we need many solutions, not just relying on bitcoin, because anything can happen. Think of the scenario, bitcoin doesn't go up in price or worse things happen to it. Don't be subjective and especially with a volatile asset like bitcoin.

[laijsica]

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

I do not think that it would be impossible, it is just taking sometime to get back to ATH levels, but look at how much we increased in the last year. Remember, this coin was under 20k for a while, I think the bottom hit somewhere close to 15k or 16k whatever, which means that we are still four times higher than that even with the current situation.

People look at the top, but they never calculate the bottom and the reality is that compared to the bottom we are doing a lot better right now, that is all that should matter. I personally believe that we are going to have some trouble one way or another, and shouldn't really be doing anything bigger than that. Just focus on the benefits that we had, maybe you and I couldn't, but the general market went up a lot.

Overall, we do not see any reason to be disappointed in the downward trend of the market. Periodically we see the price of the market and its movement is not fixed at a time.  Even though the after ATH is now at its lowest point, This price does not seem unusual to me, compared to the previous stable. This may lead to some loss of margin but you should remember that you are in the BTC market and time will pay you back. Even you should be grateful to your time- a long-term investment.
You are right that people always look at the top price, actually we are interested in picking only profit through investment. It was better to accept the facts and take the overall view of our inferiority positively.

[Zigabel]

The independence Bitcoin has got is such that it's in no way tied to the economy of any particular country and at such there can be no way where Bitcoin is going to be affected by the inflation a particular country is suffering at anytime, and that's one of the benefits Bitcoin gets from been decentralized,no actually control from any country or region so as to be impacted by their economic situation at any point in time it's actually independent of all of that and makes it's progression according to it's cycle and events of influence around it. Inflation will always affect Fiat because they have got the attachment to the economy of their local countries but not same with Bitcoin.

Bitcoin can be likened to a universal currency thst has investing opportunities around while staying decentralized so little to no effect of economy situations can actually impact it as it's a store of value too where people rather store in times of inflation in their local economy so as get yields after the inflation when Bitcoin has appreciated in it's value, their investment becomes of even more economic value to them than it's been earlier.

[EarnOnVictor]

No doubt, like any other asset, Bitcoin has helped to hedge against inflation in the past, but with the current status of the coin, I do not think it would be easy anymore. Take for instance, if you buy Bitcoin at $65,000 and the inflation in your country bites to the point that the goods you want to buy or the service you want to purchase has truly skyrocketed to at least 4 times as it is currently happening in my country, whereas Bitcoin could only move to $125,000. What do you do? This obviously cannot hedge the inflation, but as an investment, if it moves higher for at least a reasonable degree, it will still help the person to limit the effect of the inflation and it depends on the performance of Bitcoin at the time.

And I must advise you, do not invest in Bitcoin simply because of its past history, it may fail you and a good investment warning forbids that. You should invest in it because you believe in it, that's better in case anything bad happens. Bitcoin enjoyed its low price then and the early investors were so lucky, but at this time when the price is somewhat high, extreme care is needed to avoid issues.

I do not think that it would be impossible, it is just taking sometime to get back to ATH levels, but look at how much we increased in the last year. Remember, this coin was under 20k for a while, I think the bottom hit somewhere close to 15k or 16k whatever, which means that we are still four times higher than that even with the current situation.

People look at the top, but they never calculate the bottom and the reality is that compared to the bottom we are doing a lot better right now, that is all that should matter. I personally believe that we are going to have some trouble one way or another, and shouldn't really be doing anything bigger than that. Just focus on the benefits that we had, maybe you and I couldn't, but the general market went up a lot.

I never mentioned impossibility here but rather a concern. I mean another scope that is a possibility with Bitcoin that many may not be looking towards. Anything can happen in the financial market with any assets which include Bitcoin, so it would be unwise of me to say that it can't be moving higher, but I was just saying something that could cause another issue if care is not taken in another view of it. I am never a blind follower of the market and the recent fall never slipped off my radar because I am a friend of my trading chart and I analyse many times daily, unlike some people who will just be a blind holder and miss out often, we need to be smart.

We are all expecting Bitcoin to reach $100,000 and above, but are we all looking at the constraints that could make this not happen as well for us to prepare beforehand? That's the difference between the two of us here. And fine, Bitcoin dropped and rose back, interesting, but it is not the only asset that has done that, and the effect after being added to the mainstream of the financial market can't be the same anymore. It will never behave dangerously again like what many still expected of it. These are my concerns, institutional investors are taking over, and it might behave differently now whether we like it or not. And for Bitcoin to perform excellently like before, it might take time, not that it will be impressive all the time. I believe it has done most of what it would do this time and in the space of decades, it might be able to reach and hold above $100,000 conveniently depending on the factors it faces at that time.

[tygeade]

I do not think that it would be impossible, it is just taking sometime to get back to ATH levels, but look at how much we increased in the last year. Remember, this coin was under 20k for a while, I think the bottom hit somewhere close to 15k or 16k whatever, which means that we are still four times higher than that even with the current situation.

People look at the top, but they never calculate the bottom and the reality is that compared to the bottom we are doing a lot better right now, that is all that should matter. I personally believe that we are going to have some trouble one way or another, and shouldn't really be doing anything bigger than that. Just focus on the benefits that we had, maybe you and I couldn't, but the general market went up a lot.

Overall, we do not see any reason to be disappointed in the downward trend of the market. Periodically we see the price of the market and its movement is not fixed at a time.  Even though the after ATH is now at its lowest point, This price does not seem unusual to me, compared to the previous stable. This may lead to some loss of margin but you should remember that you are in the BTC market and time will pay you back. Even you should be grateful to your time- a long-term investment.
You are right that people always look at the top price, actually we are interested in picking only profit through investment. It was better to accept the facts and take the overall view of our inferiority positively.

I do agree that there is nothing to be upset about, we are seeing how things are moving right now and I think it is clear that we are going to do a lot better, we just need to make sure that we can handle it all, and for that to work as well as we hope it would, we need to realize that things will take time to recover, which is why I believe that we can't really make it work anyway we want.

It's clear that we are not going to get anything out of it, it's really not the method we want, we just need to make sure that it is going to get harder and harder in the end, so it has to be something to care about more and more. We should probably stay away from it whenever we can, and it will not be a simple situation to manage it.

[wiss19]

not everyone can buy bitcoin for less than $20k and there are new investors entering the market, some have bought for $70k. Not to mention currently bitcoin is correcting and there is no guarantee that it will recover and rise again.

I agree with what EarnOnVictor said, don't invest in bitcoin just because of its history because things are changing with time. In the past, we have seen bitcoin increase by 1000%, 10000% and more. But I think that won't happen anymore because things have become very different, bitcoin has become bigger to be able to bring us such big profits.

In addition, to solve inflation we need many solutions, not just relying on bitcoin, because anything can happen. Think of the scenario, bitcoin doesn't go up in price or worse things happen to it. Don't be subjective and especially with a volatile asset like bitcoin.

When you say less than $20k that can also mean super low amounts and what if BTC drop there one day? But, it's always better to just do a DCA. We aren't still forced to buy the whole coin. Actually it is more guarantee for BTC to recover and rise because like you said, there will always be new people that enters here. There is only no specific time for it, this is why patience is the main requirement here.

When it comes to investing, history is also one of the things that we check but of course we will still compare it to their current performance and decide if they are still good to pick up or not. There are still people who analyse the same as you and this is why they go for a cheaper and newer coins instead. That's up to them and it's their risks or responsibility already whatever happens to them or their money.

[ancafe]

What is your assessment and openion?

The investment route is a tool for someone to reach the stage of financial freedom, but we need preparation so as not to influence it. For example, having spare money to meet daily needs and always surviving conditions that occur with bitcoin, such as price drops. Bitcoin can have a good impact on those of us who invest as long as the investment we make does not affect life's necessities.

How much of an impact does inflation have on Bitcoin?

There has been an impact of inflation that has affected human life, but Bitcoin can provide resilience in that case. If said further, the impact of inflation does not really affect Bitcoin because this asset can always recover at certain moments.

[Alpha Marine]

A major reason why bitcoin is so valuable to me is how much it shields me from inflation. This doesn't mean I don't get affected my inflation, of course not, I still buy stuff as ridiculously high prices but my savings don't depreciates. Without bitcoin my savings would be in my local currency or dollar, both of which depreciates over time, even though my local currency is way worse, but with bitcoin I don't have to worry about that. Even if the value drops, all I need to do is control my emotions enough and be patient for the value to rise again.

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.

One could argue that the price of bitcoin goes up a bit when dollar depreciates and can make a case for that argument. When dollar depreciates and there is inflation, more people convert their savings into bitcoin so it doesn't lose value, this in turn can creates an increase in demand of bitcoin and could increase the price. Since I have no proof for that, it's just a theory, but in my country, a lot of people keep their savings in bitcoin to avoid inflation and I believe that has an effect on bitcoin price.