How does inflation affect crypto?

[Cutter Cute]

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.

[Bobcrypto]

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.

[Speaker]

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.

[mohdelayo]

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.

[elbans89]

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

[kent47400]

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.

[Noverteno]

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.

[Hisbullah]

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.

[Speaker]

Well, I would say that crypto is already going down. The bear market has seamlessly penetrated into the cryptocurrency space.

[Afony]

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.

[DAMKAR]

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

[Speaker]

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.

[therozaq]

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

[Speaker]

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.

[amberrrr789]

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.