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Author Topic: How does Bitcoin protect people from inflation?  (Read 737 times)
hd49728
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Today at 05:06:02 AM
 #81

Thats the factor of bitcoin there is a market volatility, there is a potential for your bitcoin price to up and down thats the cons but imagine the possibility that the value of your bitcoin goes up within just a short period of time with the inflation tons of foods and even services goes up and the value of your money getting down but with the bitcoin we can treat this as an asset that you could potentially gain profit and we know that there is a limited number of bitcoin there is no chance we have over supply than the banks they can print tons of money everyday.
Price is more volatile and more easily to be manipulated than value. Value first, price later is a way how an asset can maintain its new all time high price range a long time, and reclaim it after corrections.

Shitcoins can have price manipulation with very high volatility but at the same time values of such shitcoins won't grow enough, won't be able to catch up with prices, then when manipulations finish purposes and whales leave market, rug the liquidity, such shitcoins will return to where they are, low value, low price together with low trading volume or liquidity.

Bitcoin always reclaims its all time high of each previous market cycle, makes its new all time highs, while most altcoins could not do that. It's strong reason why institutional investors from Wall Street always put their eyes on Bitcoin and invest their capital on Bitcoin first.

As-Soon-As
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Today at 06:06:43 AM
 #82

Bitcoin's market price can fall dramatically, even while inflation is high. Research and financial institutions have noted that Bitcoin's relationship with inflation is not strong enough to call it a reliable inflation hedge.

Thats the factor of bitcoin there is a market volatility, there is a potential for your bitcoin price to up and down thats the cons but imagine the possibility that the value of your bitcoin goes up within just a short period of time with the inflation tons of foods and even services goes up and the value of your money getting down but with the bitcoin we can treat this as an asset that you could potentially gain profit and we know that there is a limited number of bitcoin there is no chance we have over supply than the banks they can print tons of money everyday.

The government prints a lot of fiat money due to which the value of money decreases every year (your money remains as it is with you but its value decreases). As a result, people are not getting the right value of money, I could buy a lot of things with 1000 taka ten years ago but now it is not possible. But if I had bought 1000 taka bitcoins 10 years ago then it would definitely be worth a lot now, here we can see the best solution to inflation.
Because Bitcoin is the only one that is most effective against inflation which is proven, if you want to use money properly and want to retain its value in the future then holding Bitcoin is definitely the most important and best plan.

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NewRevelation
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Today at 06:20:29 AM
 #83

Thats the factor of bitcoin there is a market volatility, there is a potential for your bitcoin price to up and down thats the cons but imagine the possibility that the value of your bitcoin goes up within just a short period of time with the inflation tons of foods and even services goes up and the value of your money getting down but with the bitcoin we can treat this as an asset that you could potentially gain profit and we know that there is a limited number of bitcoin there is no chance we have over supply than the banks they can print tons of money everyday.
Price is more volatile and more easily to be manipulated than value. Value first, price later is a way how an asset can maintain its new all time high price range a long time, and reclaim it after corrections.

Shitcoins can have price manipulation with very high volatility but at the same time values of such shitcoins won't grow enough, won't be able to catch up with prices, then when manipulations finish purposes and whales leave market, rug the liquidity, such shitcoins will return to where they are, low value, low price together with low trading volume or liquidity.

Bitcoin always reclaims its all time high of each previous market cycle, makes its new all time highs, while most altcoins could not do that. It's strong reason why institutional investors from Wall Street always put their eyes on Bitcoin and invest their capital on Bitcoin first.

This is a clear explanation that answers the question of the OP, and I guess he should be satisfied.

When we talk of inflation, it only seems like it has an effect on Bitcoin when the prices drop. But because Bitcoin is a store of value, and the price potentially rising, then the risk of inflation is gone, and value appreciates and adds a lot more. So, if one had let's say $100 worth of BTC, and the value of Bitcoin appreciates, it's clear that the value automatically changes and increases well enough that there is no need to talk of inflation anymore. Bitcoin is really a store of value.

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