How does Bitcoin protect people from inflation?

[hd49728]

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]

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.

[NewRevelation]

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.

[HajiBagi]

Bitcoin is said to be a hedge against inflation, and that's not just a claim; it's based on Bitcoin's price history, which has increased over time. Don't look at it in the short term, but you need to look at it in the long term because short-term price movements can be volatile and may not reflect its performance as a long-term asset. But if you look at it in the long run, you can see that Bitcoin's price tends to go up. If you want proof, you can check out this picture:


https://bitcoindata.science/dca-calculator

Those who doubt that Bitcoin cannot or is not worth fighting inflation are basically short-term thinkers or those who have invested in Bitcoin for the short term and have suffered losses due to volatility. Because I completely agree with what you said. If we look at the market from the past of Bitcoin to the present, we will see that every person has benefited a lot by investing in Bitcoin and Bitcoin has become one of the best assets to fight inflation.

Many people may say that they will invest in gold, yes they can invest in gold, but Bitcoin has become a much better asset than gold at present and if a person invests in Bitcoin, he will definitely benefit much more than gold if he is able to hold it in the long term.

Bitcoin has been better Gold for years now and no one can argue about it, although bitcoin price can change at any time and that is part of how it works, but when we look at the most successful between Bitcoin and Gold, bitcoin has been the best, people can doubt bitcoin, but those who believe and understand bitcoin will never doubt it, the people who doubt bitcoin are the same people who can't hold, and if you can’t hold your bitcoin for a long period of time to make a good profit, you should not buy or invest in bitcoin, because bitcoin is for people who believe in it and are willing to hold without considering how the market works.

[New Judgement]

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.

If we are being honest with ourselves, bitcoin is not the only effective way against inflation. Remember before bitcoin was invented, inflation was already there. People back then had a way they were protecting their money against inflation. Bitcoin didn’t make those methods obsolete, bitcoin was just another alternative that was added to the already existing methods that investors were using to prevent their wealth from being eaten up by inflation. A good example is Gold and real estate. Gold and real estates were and are still good investment opportunities that help investors fight inflation from wiping out their money.

[Nightwatchmare]

There are people who does not like Bitcoin because they see it as what will remove food from their mouths and make them irrelevant to the society so they are ready and willing to say negative things about Bitcoin so that people could stop adopting it, so you should not believe what the so called financial institutions said about Bitcoin not being strong enough to call it a reliable inflation hedge. Bitcoin cannot be inflation hedge in a short term because the price may decrease but it is inflation hedge when you hold it for a long period of time. For example, if you hold Bitcoin during a bear season to a bull season the value of your Bitcoin could increase by two or three times in price, which makes it inflation hedge.

[Ishicryptic]

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.

I don't understand the point you are trying to make in this thread, regardless of whether there is a strong relation between BTC & inflation, I disagree with your view that BTC cannot serve as a good hedge against inflation itself. The total supply of BTC is set at 21,000,000 & will never exceed that amount. Shouldn't that one factor alone make BTC a good hedging tool?

Bitcoin 21,000,000 finite supply is a strong reason to make it a hedge against inflation for traditional currencies which a central bank can reprint as many times and quantity that they please and remember that anything that can be mass produced can lose it's value over time. Scarce commodities always retain their values and as long as many holders are not willing to sell the value will continue increase because their is a limited supply of the commodity. Bitcoin is volatile so it's value fluctuates but on the long term it's priced value will reach ATH because it cannot exceed the capped 21,000,000 supply unlike fiat which are not capped. Bitcoin would be a hedge against inflation if you are holding it for a very long term because it has potentials to reach ATH.

[Sunshine1525]

(Snip)

Also to correct you last all time high of Bitcoin is $126k, nobody expect to see that figures. But those impossible things happened. So there's lots of possibilities or chance that Bitcoin will reach more bigger figures in future.

Thanks for the correction dude. Yes there's lots of possibilities that Bitcoin would get valuable than the current high, it might have dropped lower than many expected but if we trace back to history, it's not something new that would make people doubt using Bitcoin as an inflation hedge cause it drops and recovers.

We can see that the coin is gradually recovering which means that those who didn’t panic and sell when it dropped from $126k have chances of recovering in the future when it goes higher than $126k. Using Bitcoin as an inflation hedge would require patience, when people are not patient they're the ones who'll think it's not good for an inflation hedge cause of volatility.