Cryptocurrencies against inflation.

[Erik4150]

I don't think cryptocurrency like bitcoin can help in any way against inflation. This is because bitcoin itself is not even stable, the price will rise and fall because cryptocurrency is always volatile. So saving money in bitcoin to beat inflation will not always work.

 

[Sincerem]

When it comes to country's economy, inflation can dwindle it, base on the current situation of things there. They might be heavily hit by devalue of their economic productivity. Cryptocurrency can only suffer such fate if people stop to constantly demand it. As long as people constantly demand it, the price will keep on rising and bringing value to it worldwide.

 

[Ebuka Stephen]

Inflation in price of crypto currencies could be a major problem for those buying it. But crypto currency are great against inflation especially when exchanging them for dollars, well I can say I made some money from inflation of Cryptos

 

[Ltherman]

I just think i should bring this here since we're all talking about tether. If you have holding in usdt i will advice you to liquidate your asset class between now and 15th of January if not you could loose out on a lot more.

 

[Deleted member 6201]

Bitcoin is seen as an inflation hedge mainly because of its limited supply, which is not influenced by its price, and because of its relative attractiveness when real yields head to zero or lower. Yet, when you buy bitcoin, you're not just doing so to hedge inflation

 

[Ralphjoe]

The stable coins will really stand an hedge against inflation, the strategy should be investing all one's money on a stable cryptocurrency like USDT coin. This investment is capable of protecting your money again inflation in the economy because the value of the coins also rises as time goes by, this will prevent your money from loosing value overtime.

 

[alberello75]

The stable coins will really stand an hedge against inflation, the strategy should be investing all one's money on a stable cryptocurrency like USDT coin. This investment is capable of protecting your money again inflation in the economy because the value of the coins also rises as time goes by, this will prevent your money from loosing value overtime.

Well, talking about USDT (Tether), we have to admit that anyway it's a crypto, with its shortcomings. In pimis, that of not having a bank to control (samething that Bitcoin).
The FIAT currency has instead the advantage of being controlled by governments and banks. Perhaps on this (FIAT), there could be more stability.

 

[Mrallison]

Inflation is part of the reasons we invest in crypto currency because we all expect profit but it also reduces the rate of involvement from people who haven't invested before because the price might be too high to afford

 

[Niftyyem]

More than individual investors, even institutions and huge firms have invested into bitcoin simply to hedge against inflation which unfortunately is the order of the day in most countries now, even top tier countries are not spared.

 

[giddy]

Bitcoin is seen as an inflation hedge mainly because of its limited supply, which is not influenced by its price, and because of its relative attractiveness when real yields head to zero or lower. Yet, when you buybitcoin, you're not just doing so to hedge inflation

 

[Goldentaby]

Bitcoin is limited in supply and based on ‘supply and demand’, it is designed to be inflation resistant, thus allowing its value to increase based on its immediate demand for it.

If anything, I’d say that inflation of fiat currency does not affect it and that makes it a great inflation hedge in the long run albeit if the demand for it suddenly drops, it could be worse than inflation.

There are major variations in the reasons for institutional investors to invest in bitcoin. They do this partly for fear of inflation triggered by central banks' wide-open cash tap. Bitcoin is seen as an insurance by these parties: a way to secure their cash against monetary devaluation or inflation. And, in part, because of the persistently low interest rates, the parties do so because they are searching for returns.

 

[Donkiz]

When you have a cash at hand or you saved some money in the bank, the value of the money it's purchasing power can depreciate due to inflation. But if you invest the money in things like cryptocurrency, it will help to ensure that the invested money is not affected by inflation, that's why investment is better than saving money in the bank.

 

[Heatman]

Inflation, as we know, represents a serious economic problem for everyone. With its increase, on the other side, our purchasing power decreases!
However, the cryptocurrencies, having an emission limit (in the case of Bitcoin, no more than 21 million units), could therefore counteract the phenomenon of inflation.
This concept, dictated by the fact that the presence of a stable cryptocurrency would allow us to change our savings, in order not to suffer a loss in value.

The volatile nature of all Cryptocurrencies is the real why people or investors make big money from their investments in cryptocurrency especially in bitcoin. The more bitcoin price inflates, the more those who still have their coin get richer.

 

[Chumzy]

When explaining the concept of inflation and Ed pointed out that it is caused by a bad economy. Nkw with a bad economy a lot is likely to go wrong and not planned for by anyone and that could just happen. Crypto currencies on the other hand is important because they are not tied to the current economies of.

 

[alberello75]

The volatile nature of all Cryptocurrencies is the real why people or investors make big money from their investments in cryptocurrency especially in bitcoin. The more bitcoin price inflates, the more those who still have their coin get richer.

Exactly, I agree with this thesis. However, it cannot be excluded that the exact opposite could also happen, that is, Bitcoin loses value. In such circumstances, they would lose not little money.
Am I right?

 

[Abelcairo43]

Bitcoin has been designated to be only 21 million in the market. Business analyst had predicted inflation for the year 2021. Its only right for big companies to find a solution which is why bitcoin serves as the biggest escape against inflation. With a limited supply, the demand determines the value.

 

[Heatman]

Exactly, I agree with this thesis. However, it cannot be excluded that the exact opposite could also happen, that is, Bitcoin loses value. In such circumstances, they would lose not little money.
Am I right?

Anything and everything is possible with bitcoin and other cryptocurrencies. It's why people or rather investors are warned to only invest with what they are willing to forgo and pray it turns out well for them to earn with it.

 

[alberello75]

Anything and everything is possible with bitcoin and other cryptocurrencies. It's why people or rather investors are warned to only invest with what they are willing to forgo and pray it turns out well for them to earn with it.

Exactly. If we think about the fact that even stock market are often unpredictable. They are even more, Bitcoin with all other cryptocurrencies.
This should be know by every investor.

 

[Kehinde]

Bitcoin is seen as an inflation hedge mainly because of its limited supply, which is not influenced by its price, and because of its relative attractiveness when real yields head to zero or lower. Yet, when you buy bitcoin, you're not just doing so to hedge inflation.

 

[btaliat]

Cryptocurrencies like first currency obey the law of demand and supply as well. But due to its limited supply,,its demand will always rise. This may go against the rule of inflation. Because in inflation, there should be excess supply against limited demand.