Bitcoin price and Inflation

[BlackHatCoiner]

It’s not just about the value. Real inflation—if we don’t just accept the government’s manipulated CPI—is also difficult to calculate.

You are correct that there's no reliable metric to measure inflation. Since "inflation" comes from "inflate" which means "to expand the supply of something", then the most accurate metric would be the M2 supply of money. This is what is "inflated", and results in the rising of prices.

Since most freshly printed money is used to buy houses as a way to protect the property owners against inflation, the price of your dream house could also be a metric that measures inflation.

[AVE5]

A Bitcoin worth $68K 2021 could be higher than a Bitcoin worth $77K today
and many tend not to think about it Same applies to other assets.
We tend to focus on nominal value and neglect real value
If we are to measure and account for inflation Bitcoin price would be lower than we see.

Bitcoin or whatsoever potential assets projected to hedge against inflations and to estimate the value of the asset as bitcoin, it must be evaluated according to its real world value and then you'll see that what the asset or bitcoin was worth in the previous based on the economy ratio isn't the same because of inflations.
As the matter of fact that the fiats can be devalued by inflations, you'll also see that the lower price of the asset as evaluated in the Usd at the past has stronger economy value in the global market than the high price of today's.
So the values are only affecting the fiats while the asset price increases to sustain the inflations.
This reason is why it's important to invest on potential long term assets like bitcoin.
Of course 1 Btc remains 1 Btc while the value is evaluated according to the real world price measured in Usd.

[cyberninja2]

...

That’s because, the rise in the price of commodities would in many ways affect just how much you are allowed r spare for investments since there would always be needs and wants that would need satisfying, leaving you with very little choice on how to go about investing.

This is one of the issues that may become a problem we all face. Rising commodity prices make it difficult for us to set aside money for investments. Every increase in commodity prices leads to higher prices for necessities forcing us to focus less on investments and more on the supply of necessities for survival.

Usually with a source of income we can still manage both aiming to set aside some of our income. However rising commodity prices mean that some of us can only manage to meet our survival needs, leaving us unable to invest in Bitcoin. Another reason is that the convenience of investing will no longer be as comfortable as it was before the commodity price increase. Ultimately we can only invest in smaller amounts than usual.

[Awaklara]

Ultimately we can only invest in smaller amounts than usual.

I think it will be better than nothing at all. The increase in commodity prices that many people are experiencing right now cannot be avoided. We must be wiser in adjusting our needs and expenses. If there are expenses that can be reduced, we can do it.
The situation will indeed be quite difficult when our income stays the same, but our expenses increase. Reducing the amount we invest is one thing that can be done. Hopefully, the difficult situation that many are experiencing now will improve soon.

[Mate2237]

Ultimately we can only invest in smaller amounts than usual.

I think it will be better than nothing at all. The increase in commodity prices that many people are experiencing right now cannot be avoided. We must be wiser in adjusting our needs and expenses. If there are expenses that can be reduced, we can do it.
The situation will indeed be quite difficult when our income stays the same, but our expenses increase. Reducing the amount we invest is one thing that can be done. Hopefully, the difficult situation that many are experiencing now will improve soon.

The truth is that inflation cost will always be on the rise and the cost of living will always be on the increase. Inflation is one thing that we have no control over. But the only thing that we can do is to make sure that we position ourselves in such a way that we will not be conditioned by the cost of living.


This implies that we should not rely surely on our salary for a living, the only way out of this is through setting up a system that will be bringing you income even when you are asleep because salary is not what we should put our hopes on if we are to live above average.

[cyberninja2]

...

I think it will be better than nothing at all. The increase in commodity prices that many people are experiencing right now cannot be avoided. We must be wiser in adjusting our needs and expenses. If there are expenses that can be reduced, we can do it.
The situation will indeed be quite difficult when our income stays the same, but our expenses increase. Reducing the amount we invest is one thing that can be done. Hopefully, the difficult situation that many are experiencing now will improve soon.

As you stated if this didn't happen at all we would likely become more relaxed and never strive to increase our performance in generating more income. The rising commodity prices which force us to be more active in earning income mean our responsibility for our income will increase leading us to focus more on managing our spending and avoiding being as greedy as we were when commodity prices were stable some time ago.

The current situation certainly seems to be one that not many people want but we can't enforce restrictions, with the aim of reducing prices. We can still control the current fluctuations even though the current fluctuations could continue. Therefore no one wants commodity prices to fluctuate. Every time we want to do something that could cost money we're already more concerned about minimizing our spending. This is so we can still hold back to protect what we need, even though it's very difficult to do so, especially against things that are inappropriate. Increased commodity prices are certainly difficult to control, as we are essentially people who spend money without much consideration.

[Y3shot]

Fiat will always be what it is; it is better to have Bitcoin. No matter how inflation tries to kill the value of fiat, Bitcoin will definitely make it valuable. If inflation makes fiat unavailable, converting that same amount to Bitcoin and holding it will provide a better value. This is why people need to invest in Bitcoin, as it is a good store of value. The more inflation affects the value of money, the more Bitcoin will increase the value of money to have some worth. The worst thing is for one to rely solely on fiat, as it will only make one poorer.

[boyptc]

Ultimately we can only invest in smaller amounts than usual.

Regardless of how high is the inflation that we're dealing, this is what's on our minds. As long as there's a way for us to invest then that's all that matters.

While it's truly different how valuable it was during the early years at a low price but the situation can also be counted if we're able to do it right now or not.

As long as we continue to DCA and hold, that's the priority for each of us. Despite with the high prices of everything right now, it's where the price of Bitcoin going and that's to increase too.

[cyberninja2]

Regardless of how high is the inflation that we're dealing, this is what's on our minds. As long as there's a way for us to invest then that's all that matters.

While it's truly different how valuable it was during the early years at a low price but the situation can also be counted if we're able to do it right now or not.

As long as we continue to DCA and hold, that's the priority for each of us. Despite with the high prices of everything right now, it's where the price of Bitcoin going and that's to increase too.

It's true that as long as we have good intentions, there will be a way for us to do everything or get through it. We can still invest even though circumstances may seem problematic to some. However we can still continue investing because it has become our primary vehicle for doing so. Therefore investing is an important part of today's economy for those who prioritize it.

What happens won't be a big deal because the method is entirely up to us. The difference is clear but the situation sometimes makes us reckon with the initial price. Ultimately we will determine whether or not we can do it when prices drop in situations we couldn't have anticipated.

That's beyond anyone's control as it's purely our responsibility and our responsibility. We always prioritize staying afloat using the DCA strategy whether the price is declining or perhaps clearly rising when the price of Bitcoin no longer matters to those who have prioritized Bitcoin.

[dezoel]

It’s not just about the value. Real inflation—if we don’t just accept the government’s manipulated CPI—is also difficult to calculate.

You are correct that there's no reliable metric to measure inflation. Since "inflation" comes from "inflate" which means "to expand the supply of something", then the most accurate metric would be the M2 supply of money. This is what is "inflated", and results in the rising of prices.

Since most freshly printed money is used to buy houses as a way to protect the property owners against inflation, the price of your dream house could also be a metric that measures inflation.

Interestingly, you do not even need to print money to have inflation, you will have to eventually but you do not have to when it first happens. When something gets expensive for a reason that creates a chain, you could be late to it.

Like in this case, oil got expensive because of Hormuz, and that caused logistics to be expensive, moving food from farms to table, and that caused the food to be more expensive, which resulted with everything else to be more expensive, without a need to print more money.