Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: owmivmen on August 10, 2022, 09:22:26 PM
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
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What happened we can see from the collapse of Luna caused by People buying UST drives the price up, and UST being burned during its exchange to luna deflates the supply. It causes inflation in Luna tokens and affects the crypto market
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Since cryptocurrencies behave like a high-risk asset, let's say like stocks, it will follow the same principle. One of which is if the Fed raises interest rate, the stock market tends to decline. This is because bank saving interest will be more appealing, since it's still risk free! Why I talk about the interest rate when the question is about inflation? Well, the Fed adjusts the interest rate based on the inflation rate, higher inflation -> higher interest.
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What happened we can see from the collapse of Luna caused by People buying UST drives the price up, and UST being burned during its exchange to luna deflates the supply. It causes inflation in Luna tokens and affects the crypto market
With crypto content marketing, you need to explain to potential customers the use cases of your project and how it can benefit users
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Crypto is used to fight inflation – this idea is only made up by members of the community. Crypto was created as an alternative to fiat for payment purposes and to escape manipulation by governments.
When inflation is high, the government will take actions to tighten cash flow, investors will have less money to participate in risky markets, including crypto. The crypto bubble will lose its strength.
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Crypto is used to fight inflation – this idea is only made up by members of the community. Crypto was created as an alternative to fiat for payment purposes and to escape manipulation by governments.
When inflation is high, the government will take actions to tighten cash flow, investors will have less money to participate in risky markets, including crypto. The crypto bubble will lose its strength.
Regarding the fact that inflation should have a positive effect on the prices of the cryptocurrency market, so far we have only one reasoning. There has hardly been any research on this. It is logically argued that when inflation increases, people will try to protect themselves from it and will invest in cryptocurrency. The demand for it will increase and the cryptocurrency will grow in price. However, in practice, the opposite effect is also observed. An increase in inflation leads to a fall in prices in all markets, including cryptocurrency. This is because there is a direct relationship between the stock markets and the cryptocurrency market.
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What happened we can see from the collapse of Luna caused by People buying UST drives the price up, and UST being burned during its exchange to luna deflates the supply. It causes inflation in Luna tokens and affects the crypto market
I mean it's like the US is currently experiencing huge inflation, even the biggest in their history. Is the dominant investor only from the US? as you know crypto was created in addition to decentralization and as a counter attack inflation in a country. is this still the case?
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Since cryptocurrencies behave like a high-risk asset, let's say like stocks, it will follow the same principle. One of which is if the Fed raises interest rate, the stock market tends to decline. This is because bank saving interest will be more appealing, since it's still risk free! Why I talk about the interest rate when the question is about inflation? Well, the Fed adjusts the interest rate based on the inflation rate, higher inflation -> higher interest.
I understand and it has something to do with the interest rates raised by the FED at this time. If the FED continues to raise interest rates will the crypto market weaken? I see US and FED control the crypto market now
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I'm my own understanding, inflation as a monetary situation causes the value of products and services to go high, thus leading to an increase in the cost of living. This kind of situation will make companies and individuals to liquidate their cryptocurrency positions in order to ease their lives, this consequently dumps the market.
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Its simple. The people buying crypto don't have the funds to indulge in it again. Why? Prices of goods and services in the offline world have increased due to the inflation. Now since prices have spiked, people spend more and thus less would be spent on investment opportunities like stocks, crypto etc
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
Of course inflation will affect crypto .
Many investors will hold their fund during inflation.
That's the fact.
But It's just my analyzing, could be wrong.
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The significant increase in inflation rates worldwide this year coincided with a bearish period in the cryptocurrency market, which has also continued throughout the current year. In any case, if the crypto-currency was, as was commonly believed, a saving refuge for people during a period of high inflation, then this year the cryptocurrency should have risen in price due to increased demand for it. However, this is not observed. Of course, other processes taking place all over the world are merging into the cryptocurrency market, but still the fact remains.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I think it's not inflation that affects the current market but the interest rates raised by The FED that make people prefer to invest in assets that are not risky such as preferring to save money
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
Do you dare to buy and invest when inflation occurs? Inflation makes the price of goods rise from the normal price. people will prefer to save and use money as well as possible
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I'm my own understanding, inflation as a monetary situation causes the value of products and services to go high, thus leading to an increase in the cost of living. This kind of situation will make companies and individuals to liquidate their cryptocurrency positions in order to ease their lives, this consequently dumps the market.
isn't that just like liquidating an investment? is there any other option besides liquidating the investment during inflation? I think deciding it's really hard to do now
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
Do you dare to buy and invest when inflation occurs? Inflation makes the price of goods rise from the normal price. people will prefer to save and use money as well as possible
Inflation primarily means a fall in the purchasing power of citizens. And since people still need to make certain expenses for food, clothing and other expenses, in the face of increased prices, potential investors cannot afford to buy cryptocurrency. Demand for it decreases and the cryptocurrency market falls.
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Thanks for information it was really helpful
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Previously, there was a general opinion that inflation, especially if it affects all or most states, should contribute to the price increase of the cryptocurrency. But this year, we do not observe such an effect at all, despite the fact that the economic decline in most countries is very significant. Apparently, here various opposite processes influence in a complex, therefore it is impossible to unequivocally count only on a certain price effect.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
inflation always make people suffering, it's because of the value of money will decrease, and price of the price of goods goes up purchasing power goes down.
That make bad economic. Hopefully it will end soon.
I think It will affect to crypto, because
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I also used to think that inflation does not affect cryptocurrency, but over time I realized that, in principle, cryptocurrency is to some extent an analogue of those fiat money that are subject to inflation.
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I also used to think that inflation does not affect cryptocurrency, but over time I realized that, in principle, cryptocurrency is to some extent an analogue of those fiat money that are subject to inflation.
It actually does, you know what inflation causes is a drastic decline in purchasing power of the populace, thus those with cryptocurrency investment will want to liquidate their holdings in order to cuisine the effects of inflation.
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when a country's economic system is no longer running well, there will be problems such as inflation, in 1998 many countries were affected by that situation, food crises were everywhere and fiat currency had no guarantees, therein lies the weakness of fiat.
Unlike Crypto, crypto has value because of technology, but some regulations make the price of crypto go down, this happens because some crypto exchanges want to list coins on the exchange and need permission from the government, this is the problem, inflation doesn't actually affect crypto, but investors are afraid of losing or losses due to interest rate regulations issued by The FED can change the situation on the stock market as well
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I think when the population gets poorer, they start to distrust their government and immediately start looking for additional means of earning, from this everyone goes into the crypto world, thanks to this new investors and projects appear, everything starts to grow at once, I watch it all the time, the collapse of bitcoin thanks to whales don't count here if that.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
Inflation that happens in every country does not affect cryptocurrency or bitcoin. I witnessed that, way back in 2016 up to now. Because at that time there was also a problem with inflation, but even because of cryptocurrency people had the opportunity to have additional income, and the others in these years if you compare the price then like ETH, Dogecoin, and other cryptocurrencies are far different in their price, as commodities are very expensive today in reality.
This means that it is clear that the inflation that is happening all over the world today has nothing to do with the falling prices of altcoins in the market today...
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The crypto market is influenced by the behavior of cyclical and risky assets, which in turn are affected by the situation in geopolitics and the stock market
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
Of course, inflation will affect to crypto market because demand will decrease.
I think investors will hold their money to invest in crypto, but it's just temporary.
Several investors will hold and choose potential crypto
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For now, I don't think the crypto condition because the inflation but I think it is just cyclus.
Yeah , we will see long bearish until bitcoin halving 2024.
So keep buy more and hold your potential coins.
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For now, I don't think the crypto condition because the inflation but I think it is just cyclus.
Yeah , we will see long bearish until bitcoin halving 2024.
So keep buy more and hold your potential coins.
Yeah for the current crypto condition because bearish season, but I think inflation effect too.
Inflation is always having bad effect for economic , industry and also crypto currency.
So, perhaps we can hold and wait.
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although many people said current crypto condition because of bearish season, but I think inflation also has effect for this condition.
We must be careful, almost all of economic suffering now.
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Actual world could affect crypto. If the world is at peace and plentiful crypto will be affected too. People will react base on what the present scenarios of their financial status and world status. Only the risk taker with huge money can stand and grab the opportunity to buy more during dump. The low level will be pressure and will sell tokens during dump. So inflation is also for crypto due to actual world scenario and manipulation.
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I have read this article https://cointelegraph.com/news/is-bitcoin-really-a-hedge-against-inflation and have understood that there is no guarantee Crypto is not affected by inflation, we do not know who is pumping up the price of BTC and altcoins others, but I agree with the article above.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I will remind you that many schools of thought, Crypto analyst, and market makers affirm that crypto is a hedge against inflation, unlike faits which is a subject of a constant inflation effect because it is centralized, is control by governments. Crypto is (Bitcoin) decentralized and can't be printed or regulated by any individual and has limited supply. It's limited supply, creates scarcity, and I don't think crypto is affected by inflation.
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I wonder if it is possible for the bitcoin #DevelopmentTeam to make changes to the code and make the issue limited not to 21 million, but to a much larger number of coins.
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I wonder if it is possible for the bitcoin #DevelopmentTeam to make changes to the code and make the issue limited not to 21 million, but to a much larger number of coins.
Are you for real? Well that can be deliberated among miners for possibly implantation. But wait a minute, you don't like the supply of BTC? But why? BTC has a capped supply which is a key feature of cryptocurrency and what apparently makes them a digital gold.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I will remind you that many schools of thought, Crypto analyst, and market makers affirm that crypto is a hedge against inflation, unlike faits which is a subject of a constant inflation effect because it is centralized, is control by governments. Crypto is (Bitcoin) decentralized and can't be printed or regulated by any individual and has limited supply. It's limited supply, creates scarcity, and I don't think crypto is affected by inflation.
If we discuss about centralized and decentralized, crypto currency is decentralized system.
No one can control it.
But inflation will effect to economic iof investors.
I think demand will decrease
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In my experience, this inflation is felt by all countries which means a lot to their own currency.
For example, if 1 USD is equivalent to 0.6 Euro, when inflation occurs, 1 USD is equivalent to 0.8 Euro and this makes all European countries inflation.
This value relationship will be felt also for cryptocurrencies because USDT, USDC, BUSD, TUSD and others are all supported by their original funds by USD and this value will continue to rise if USD inflation in the real world is like now which makes all countries in recession.
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I will remind you that many schools of thought, Crypto analyst, and market makers affirm that crypto is a hedge against inflation, unlike faits which is a subject of a constant inflation effect because it is centralized, is control by governments. Crypto is (Bitcoin) decentralized and can't be printed or regulated by any individual and has limited supply. It's limited supply, creates scarcity, and I don't think crypto is affected by inflation.
This was the prevailing opinion in the past. But life makes its own adjustments. As it turned out, everything in this world is connected much more strongly. It turned out that the global economy and finance are very actively influencing the cryptocurrency market. If inflation rises strongly, this negatively affects both the solvency of people and their business activity in this market, since they do not have the same opportunity to invest in cryptocurrency.
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Can you explain why inflation has such an effect on crypto? If I see that crypto is made to fight inflation and why do crypto prices seem to be going down when it is inflation?
I think inflation will effect in demand decreasing.
It will make crypto price will go down.
But during bearish , I think won't effect more.
Because we know during bearish almost all of crypto currency will go down.
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Well, I would say that crypto is already going down. The bear market has seamlessly penetrated into the cryptocurrency space.
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As in all developed countries in a crisis, everything should grow and not fall, but in cryptocurrency, the opposite is true. The crisis situation is inexplicable for everything why the market is starting to grow for some products.
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As in all developed countries in a crisis, everything should grow and not fall, but in cryptocurrency, the opposite is true. The crisis situation is inexplicable for everything why the market is starting to grow for some products.
Crypto market always go on but has cyclus.
We must know about this cyclus every four years.
As we know, current market is bearish.
It will happen until bitcoin halving that being predicted will happen at 2024.
Keep calm and enjoy it
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If the situation in geopolitics became stable, if they stopped raising rates and inflation was low, and the stock market was growing, there would be no need to go through any halvings, growth cycles, etc.
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If the situation in geopolitics became stable, if they stopped raising rates and inflation was low, and the stock market was growing, there would be no need to go through any halvings, growth cycles, etc.
There is several reasons why the crypto is going down now.
Inflation or recession is basic factor.
But it's also bearish season, I think inflation will make passion to invest goes down.
Crypto trading volume is decreasing now.
Maybe they just hold and wait the good progress.
Let's see
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If the situation in geopolitics became stable, if they stopped raising rates and inflation was low, and the stock market was growing, there would be no need to go through any halvings, growth cycles, etc.
There is several reasons why the crypto is going down now.
Inflation or recession is basic factor.
But it's also bearish season, I think inflation will make passion to invest goes down.
Crypto trading volume is decreasing now.
Maybe they just hold and wait the good progress.
Let's see
Also, geopolitics is making its own adjustments. This will still be with us for some time, so it is important to have a free cache on the balance in order to have time to buy at more reasonable prices, because we have not fallen below reasonable limits yet.
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so when inflation goes up, things like groceries and gas get more expensive. People tend to save money instead of investing. On the corporate side of the matter, the Fed increases interest rates to ease the inflation, which makes companies less interested in getting loans, this hurts fast developing industry such as technology the most (bc they need money to develop). In conclusion, market cools down in general, for both stock and crypto. ppl are afraid of bigger market crash like 08, so they'd rather hold more cash in hand just in case. Everyone is trying to sell and is afraid to buy, performance bad.
Some cryptos has a max cap of supply, so it can store values and has good liquidity like BTC. Besides high volatility, its new supply cut 50% every four years. In my opinion, the key is to invest long term instead of constantly trading because the market is hard to predict.
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So the market will continue to fall or it will stop at this point, the crisis is very difficult to understand how the crisis affects the product. But despite the fact that there is a crisis, it reduces the price of some products, and raises others.
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As long as there is uncertainty in geopolitics and in the stock market, it is unlikely that we will be able to see a frenzied growth
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Cryptocurrency is not the same as real money or cash, which circulates around the world as legal currencies of various states. Instead, bitcoin is digital and worldwide, and its value is entirely determined by the demand and supply of certain coins. As a result, it simply means that cryptocurrencies do not respond to inflationary pressures in the same way that a foreign currency would. Many bitcoin supporters think that it is a counter-inflationary asset. As the value of your currency falls, the value of your cryptocurrency rises.
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Cryptocurrency is not the same as real money or cash, which circulates around the world as legal currencies of various states. Instead, bitcoin is digital and worldwide, and its value is entirely determined by the demand and supply of certain coins. As a result, it simply means that cryptocurrencies do not respond to inflationary pressures in the same way that a foreign currency would. Many bitcoin supporters think that it is a counter-inflationary asset. As the value of your currency falls, the value of your cryptocurrency rises.
But the cryptocurrency also reacts by falling when the stock market falls.
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How inflation can interfere with the cryptocurrency is unclear, if only the dollar itself collapses then only something will happen. The global crisis may affect the cryptocurrency as it has already been.
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In times of crisis, everything should increase rather than decrease, as is the case in all developed nations, but this is not the case with cryptocurrencies. Why the market is starting to expand for some products is unfathomable for everything given the crisis condition.
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Its simple. Inflation reduces less cash in the pocket and thus less cash to invest. One method of carving inflation is if the Fed raises interest rate, the stock market tends to decline. This is because bank saving interest will be more appealing, since it's still risk free!
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In my opinion crypto is a hedg against inflation, even as many experts has also considered bitcoin as a hedge. The effects of inflation on crypto is not known or are there facts to established by crypto experts/analysts that inflation affect crypto. The interest rate constant rise by the FED has no direct effect on crypto but on fiat (Dallas), though certain people believed that FED interest hike affected crypto indirectly through trading but I think that this affect may not be directly.
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All countries are currently experiencing inflation due to rising energy prices, some people will sell their crypto assets when they no longer have fiat money.
Energy, oil and gas prices are likely to rise, and crypto prices fall due to the impact.
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All countries are currently experiencing inflation due to rising energy prices, some people will sell their crypto assets when they no longer have fiat money.
Energy, oil and gas prices are likely to rise, and crypto prices fall due to the impact.
a certain imbalance is observed. It will take a lot of time to put it all in order.