Inflation is the main cause of financial depression

[SAHASAN]

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

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[btc78]

If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.

It is possible that if fiat were backed up with a blockchain system then central banks would be able to promote higher economic activity and control the supply. Although I am sure a lot would still prefer the cryptocurrency.

Cryptocurrency are decentralized and have no any authority having control over it. Fiat having blockchain system will cause a disruption to both non-crypto and crypto enthusiasts. For this to happen, there should be a massive change up in terms of traditional finances which is something that is not easy to conduct.

[kotajikikox]

Bitcoin can never help the inflation in a country as a whole however it can help each citizen to become more wealthier therefore pushing economic growth by increasing purchasing capacity. Bitcoin will be basically the pushing force for an economy to grow and prosper. I do hope too that someday I will benefit much more from bitcoin.

[Oshosondy]

Inflation is one of the cause of financial depression but it is just one of the cause. Also a country with good economy will have people with financial depression. Everybody can not be rich and you can not know what everyone on earth are going through emotionally.

Did you read about the happiest countries in the world and the most depressed countries in the world. UK is in number 2 of the most depressed country but the inflation in the UK is far less than some countries in the happiest country in the world.

Also know that bitcoin can not solve inflation, financial depression and depression generally. Not everyone can also afford bitcoin. Some people will buy it but not much in a way that can make them to be come very rich.

[yudi09]

The application of the blockchain system to currency issued by the government only makes transactions easier due to management but cannot overcome inflation.
When the circulation of paper money increases, the value of the currency also decreases. Here Bitcoin cannot make things change for the better to save economic conditions.
Bitcoin for everyone in limited quantities. IMO, it's not because of the implementation of the blockchain system on fiat currency that makes Bitcoin expensive.

[KingsDen]

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

The power of the blockchain is no longer in doubt, both the government and individuals have known how powerful the blockchain is in connection to decentralization. It is because of this reason that the government have started developing their own coins that is pegged to their fiat and started running it on blockchain as you can see almost every country have their own CBDC. But then do we conclude that government likes decentralization, no! The government wants to use your data and sensor you, they want to detect what you can and what you cannot do. This is the reason the adoption of blockchain would be slowed, the government especially the corrupt ones will not want to run a government whereby their financial status will be in a place as public as a blockchain. With blockchain no government will manipulate their net worth, their security power and more. We will come to the state of blockchain globalization, but it might not happen any moment.

[Apocollapse]

In addition, 2020 should be included in global recession too.

First you need to clarify, it's a currency that use blockchain or Bitcoin?

If it's a currency that use blockchain, it doesn't mean there are no inflation. Blockchain is just a public ledger where people can see the balance, transactions, etc. If the currency is centralized and has unlimited supply, inflation still exist.

I disagree inflation is the main cause of financial depression, it's mainly due to low productivity or corruption.

[Cryptoprincess101]

Inflation is one of the cause of financial depression but it is just one of the cause. Also a country with good economy will have people with financial depression. Everybody can not be rich and you can not know what everyone on earth are going through emotionally.

Did you read about the happiest countries in the world and the most depressed countries in the world. UK is in number 2 of the most depressed country but the inflation in the UK is far less than some countries in the happiest country in the world.

Also know that bitcoin can not solve inflation, financial depression and depression generally. Not everyone can also afford bitcoin. Some people will buy it but not much in a way that can make them to be come very rich.

I like this actually, we should know that those that can't afford daily needs will always feel the impact of inflation so the goal should be on employment and bringing in projects that will remove people from abject poverty and long suffering only then can inflation be conquered because no matter the price of things, the rich will always afford it unlike the poor so eradicating poverty can be a step to reduce inflation.

The United Kingdom blossoms in their economy yet some still feels inflation due to the high cost of living and high taxation in the UK so we should be more concerned on things that will generate more income to us then we won't feel inflation that much again

On a normal note, no matter the price of Bitcoin, everyone cannot afford it, so there's no way everything will be fine with every body. In this society we live in, almost every thing goes in the favour of the rich and wealthy people amongst us but no matter the situation you find yourself keep striving for a better future that is why it is advisable to invest in Bitcoin now because it has a solid future.

[DeathAngel]

It’s out of control, it’s a tax on us every single year. If you don’t get a pay raise every year that at least equals annual inflation then it’s a cold hard fact that you are getting poorer every year. Governments & Central Banks don’t care one bit about us. We have to fend for ourselves out here, hence why we have all seeked out this forum

[YOSHIE]

Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

Before you talk about Blockchain, you should first study the function of Blockchain technology for banking.
I will give an example of the advantages of Blockchain for banks.

Blockchain is a technology that functions as a storage system or digital data bank connected via cryptography. Although first known through Bitcoin and other cryptocurrencies, this technology has broad potential for application in various sectors.

And if banks prioritize blockchain technology.

The use of blockchain technology can reduce administration and transaction costs by eliminating the need for intermediaries, which can support Islamic banking's goal of minimizing transaction costs.

Conclusion: of blockchain technology.

In short, blockchain is a technology that is the basis for developments in the field of currency in the form of crypto. Usually exemplified by the most popular forms such as bitcoin, ethereum, and other similar forms of crypto.

Point for you, blockchain is not a currency, blockchain is a system that functions and works as technology.


Likewise with Inflation and Finance, what is the relationship, it seems you have to first understand the meaning of Inflation and Finance.

Inflation is a process of increasing prices in general and continuously, an increase in the price of one or two goods alone cannot be called inflation unless the increase extends to other goods.

Finance is a term related to financial management, including financial resources, investment, and overall financial management.

Your topic is difficult to understand, you don't know what you are asking.

[Frankolala]

There is no way blockchain will help to reduce inflation, because inflation is caused by poor economy. The government of a country is the one responsible to tackle inflation, and with all seriousness and commitment to make sure the economy improve, it can be achieved.

The fact is that the government don't care about what happens to the common main on the street but rather they are after enriching themselves, and make the poor become poorer, through taxes and corruption. The blockchain is transparent and no government WI want to use it, because it will expose their evil act.

[kentrolla]

I don't understand how blockchain can prevent inflation? How are these two even related? I think this statement lacks basic understanding of inflation and we need to understand inflation in certain country is caused when the value of their fiat depriciates as their buying power will be reduced and it's a matter of import and export, blockchain cannot solve much here unless people create a common currency and use it as a conversion for import and export instead of USD.

[mindrust]

Overpopulation is the main reason. (Not enough quality resources, too many demand/people) Inflation is only the symptom of what’s really happening.

Here are the choices we have:


High inflation is bad. Let’s increase the interest rates.

a) the economy stops. Recession begins. People lose their jobs and die from hunger.
b) the rate increase wasn’t enough, the inflation goes higher, people keep losing their purchasing power.

When the govs face this situation, almost 99 times out of 100, they prefer choice “b”. They only pick “a” when having a recession benefits their elite team better. (They already went short on the markets)

[QuinielaPosible]

When faced with high inflation, governments typically prefer to avoid aggressive interest rate hikes that might lead to a recession and job losses. Instead, they often opt for a more cautious approach, hoping to manage inflation without severely impacting economic growth.

This preference tends to preserve purchasing power in the short term, even if it risks higher inflation persisting.

[stomachgrowls]

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

Not to break your optimistic approach or positivity towards blockchain tech and about Bitcoin but its not something that been created on saving up or would really be that solving those economic problems that we are facing on. It is really just that not right that people would really be having this kind of approach and beliefs that it is really that intended for this kind of sole purpose of its existence. As part of living and part of the reality
that we are living then financial depression and that inflation or whatever economical problems that we are facing is something that inevitable.

Instead on making yourself that that thinking about those things, it would really be better that you should really be doing the solution of your own on which finding up other source
of income and dealing up something that correlates to it on which making out that priority on how to survive on via means into those common investment methods and other methods available.

[Die_empty]

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

Blockchain technology is not the solution to inflation. There are nations that are using central bank digital currency but still experiencing inflation. Reduction in cost of production will be beneficial in reducing inflation. The government also use economic policies like increases in interest rates to reduce the purchasing power of the people.

Overpopulation is the main reason. (Not enough quality resources, too many demand/people) Inflation is only the symptom of what’s really happening.

Many countries are experiencing massive reductions in population because of low birth rates, yet they are still experiencing inflation. Inflation in some countries with high populations is lower than in some nations with less population. Therefore, overpopulation might not be the main cause of inflation. If demands for resources get the needed supplier accordingly, there might be no inflation. China is an example that population is not the real problem.

[alastantiger]

Inflation today is caused by corporate greed. The CEOs are being greedy and just charging more, and giving less, and pocketing that difference. And that’s what hurts the economy the most. Keeping currency locked up in the rich bank account and not fluid. Corporations are recording record profits, so we know that the money being raised by the higher prices isn’t being passed on down the supply chain. The money raised by higher prices is stopping at the corporations and going into their pocket.

[shield132]

According to the IMF, the world has experienced four global recessions since World War II: 1975, 1982, 1991, and 2009.

Financial recession is caused by financial inflation
If the blockchain system was attached to the government created currency, then the global economy would never have seen a recession.
Maybe a day will come when every country will publicize the blockchain system as their official currency and the price of Bitcoin will skyrocket may be that time only satoshi will be 1$ or more ......... 

Blockchain is not magic but this word is often abused to mislead people. First of all, blockchain systems can't be attached to government-created currency, there is a need for developers that will create a new currency with its own blockchain but even if we do that, what's going to stop governments from printing money? They'll just create a cryptocurrency with the ability to mint new coins. Also, if the country doesn't produce anything, then its economy is not going to grow and no blockchain is going to help such currency to escape.

[Jegileman]

Bitcoin can never help the inflation in a country as a whole however it can help each citizen to become more wealthier therefore pushing economic growth by increasing purchasing capacity. Bitcoin will be basically the pushing force for an economy to grow and prosper. I do hope too that someday I will benefit much more from bitcoin.

Don’t you think that as people get wealthier through bitcoin and become financially stable, the inflation of the country might have reduced but things will becomes more expensive to adjust to the living of citizens in the country. There’s a reason for anything that happens in the economy, whether it benefits us a group of people only, or even the elites. If all this are not controlled, it will get a point that your wealth cannot be useful to you again because with the so much money you’ve had, you won’t be able ti get what you want.

[Darker45]

I'm afraid it isn't as simple as that. I don't even think it is right to generalize that financial recession is caused by financial inflation. That's oversimplifying recession, which is actually multi-faceted.

If that's your premise, then we should be facing recession all the day of lives. After all, inflation is happening all the time. It has always been an integral part of the current economic system. The prices of goods and services have always been increasing no end. The supply of money as well.

Here's a thought to ponder: since recession basically follows a "decline in economic activity," will a Bitcoin-based economy not experience the same if the price of Bitcoin continues to skyrocket? Will recession be a natural consequence when everybody's hodling rather than spending?