Bitcoin role in controlling inflation

[laijsica]

In today's world due to the effect of inflation high price of every commodity is being observed which is shrinking the daily income source of the people which is having a negative impact on the overall quality of life. Central banks of many countries are exploring and developing digital money with their financial systems that integrate with conventional fiat to manage all economic activities with people's daily needs. This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

[Mia Chloe]

If you come to think of it , discussions of these nature wouldn't come up if bitcoin didn't become the Top crypto currency in the market. Fact is bitcoin actually wasn't created for the purpose of investment which in turn can be used to combat inflation for the investor, rather the reason Satoshi created it was for the purpose of a simple  digital P2P cash system without third parties or government involved.
Yes bitcoin can be used as an investment because of it's volatility and returns over time. However for you to be able to combat inflation, you would have HODL your coins for a longer period of time.

[0t3p0t]

The only problem with Bitcoin is it's volatility which I think some people who are not investors don't like but the idea of Bitcoin being inflation proof is what makes it important for most of us whether enthusiasts or just ordinary people. As we all know local currencies in some countries like mine is shrinking in value and we are not happy with it though government is cooking for CBDC's but I don't know how it's going whether people will support it or not but for me personally I will still go for Bitcoin.

[Zed0X]

I'm still trying to wrap my head around the idea that it will control inflation like how? Yeah, it has a limited supply but it still won't be used as the country's main currency and it's mostly treated as an investment asset by investors. I think the profits from investing in bitcoin can help cope with a country's inflation but it cannot stop/lessen it.

[TomPluz]

I would say that inflation is something that is affecting all people and there is nobody that is exempted on this malady. With the understanding that we have now on inflation, this is the beast that is so difficult to tame once it starts to roar. And it even affected the United States of America, of all countries. Inflation is one that can penetrate even our personal lives. For me, inflation is something that will slowly creep into any nation's economy and there is no stopping it...the only big problem if inflation will happen in an abrupt and sudden manner as the people are unprepared for the pressure. Nobody can stop inflation. So what we can do? We can invest in assets that will increase in value over time. And Bitcoin is one of those assets under this category. Just as simple as that. The only problem is finding the money in this difficult time to buy more Bitcoin.

[_act_]

This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent.

Have you read about the CBDCs before? I mean the ones that have been created already. CBDCs are not more than fiat. in fact, they are fiat. They are pegged in 1:1 to the Fiat of the country that created it. So CBDCs do nothing to mitigate the effect of inflation.

[Wiseman]

I would say that inflation is something that is affecting all people and there is nobody that is exempted on this malady. With the understanding that we have now on inflation, this is the beast that is so difficult to tame once it starts to roar. And it even affected the United States of America, of all countries. Inflation is one that can penetrate even our personal lives. For me, inflation is something that will slowly creep into any nation's economy and there is no stopping it...the only big problem if inflation will happen in an abrupt and sudden manner as the people are unprepared for the pressure. Nobody can stop inflation. So what we can do? We can invest in assets that will increase in value over time. And Bitcoin is one of those assets under this category. Just as simple as that. The only problem is finding the money in this difficult time to buy more Bitcoin.

I agree with you that investing in bitcoin is a good way to save money, I don't think bitcoin will be worth $1 million but I think that by buying bitcoin during a market dip you can make a little money and at least save your money by outpacing inflation with the help of the bitcoin price.

[Fivestar4everMVP]

In today's world due to the effect of inflation high price of every commodity is being observed which is shrinking the daily income source of the people which is having a negative impact on the overall quality of life. Central banks of many countries are exploring and developing digital money with their financial systems that integrate with conventional fiat to manage all economic activities with people's daily needs. This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

CBDC is and was never going to be a hedge against inflation, and this is mostly because, just as you have mentioned, it's going to be connected to the fiat system, which simply means that it's a digital version of fiat money, and we all know that governments, in conjunction with central banks can print as much fiat as they want when needed, when ever this happens, rest assured that even more CBDC will as well be minted so that it will corrolate with the amount of fiat in circulation.

Bitcoin is the true hedge against inflation, or so it is supposed to be if only people will learn to boycott fiat, and keep all their money in bitcoin, leaving a minor amount laying in the bank for day to day expenditures.

But then, that's just, many are yet to realized the true power and benefits that comes with embracing bitcoin, but then again, let's hope that as the crypto currency ecosystem continue to grow, people will begin to realize and embrace bitcoin.

[0t3p0t]

I would say that inflation is something that is affecting all people and there is nobody that is exempted on this malady. With the understanding that we have now on inflation, this is the beast that is so difficult to tame once it starts to roar. And it even affected the United States of America, of all countries. Inflation is one that can penetrate even our personal lives. For me, inflation is something that will slowly creep into any nation's economy and there is no stopping it...the only big problem if inflation will happen in an abrupt and sudden manner as the people are unprepared for the pressure. Nobody can stop inflation. So what we can do? We can invest in assets that will increase in value over time. And Bitcoin is one of those assets under this category. Just as simple as that. The only problem is finding the money in this difficult time to buy more Bitcoin.

I agree with you that investing in bitcoin is a good way to save money, I don't think bitcoin will be worth $1 million but I think that by buying bitcoin during a market dip you can make a little money and at least save your money by outpacing inflation with the help of the bitcoin price.

Exactly and Bitcoin's profit is way more decent compared to putting money in the bank or getting CBDC which is mostly stable coins. That would be an advantage if we are gonna choose Bitcoin over other investments. The only problem here is inflation which the world is currently facing and the solution to that is investing in Bitcoin.

[Ricardo11]

In today's world due to the effect of inflation high price of every commodity is being observed which is shrinking the daily income source of the people which is having a negative impact on the overall quality of life. Central banks of many countries are exploring and developing digital money with their financial systems that integrate with conventional fiat to manage all economic activities with people's daily needs. This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

I totally agree with you. Inflation has become a very serious problem in today's world. Bitcoin and cryptocurrency can certainly act as a powerful hedge, as Bitcoin and other cryptocurrencies are becoming more widely used today. and, central bank digital currencies (CBDCs) are emerging as a possible solution. It can reduce the effects of inflation by combining it with a fiat currency.

The price of Bitcoin is not stable, but due to the limited supply of Bitcoin it protects us from the risk of inflation. This will protect us from inflation to a large extent.
Finally, a financial infrastructure should be created where fiat, CBDC and cryptocurrencies are used, resulting in much more manageable reduce inflation.

[JISAN]

In today's world due to the effect of inflation high price of every commodity is being observed which is shrinking the daily income source of the people which is having a negative impact on the overall quality of life. Central banks of many countries are exploring and developing digital money with their financial systems that integrate with conventional fiat to manage all economic activities with people's daily needs. This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

A country's government can print as much money as it wants with the permission of the central bank, which is why when the money supply in the country exceeds the production of goods, almost everyone has money, while others have a much smaller supply. So as we have more money and less production of goods, the demand in the market is more than the supply which causes inflation. Bitcoin's supply is limited, making it unlikely to be affected by inflation.  But one problem with Bitcoin is that it is not volatile due to which its price always fluctuates according to the demand, in this case we will face many problems in using it for our daily expenses. So Bitcoin cannot completely solve our inflation problem. On the other hand, if a stable digital coin is launched in the country and its supply is fixed, the country will face many problems.

[laijsica]

In today's world due to the effect of inflation high price of every commodity is being observed which is shrinking the daily income source of the people which is having a negative impact on the overall quality of life. Central banks of many countries are exploring and developing digital money with their financial systems that integrate with conventional fiat to manage all economic activities with people's daily needs. This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

Bitcoin is the true hedge against inflation, or so it is supposed to be if only people will learn to boycott fiat, and keep all their money in bitcoin, leaving a minor amount laying in the bank for day to day expenditures.

Yes Bitcoin can be a potential hedge against inflation and real assets should be preferred as Bitcoin is a volatile asset. A digital economic system consisting of both centralized and decentralized assets should be formed so that Bitcoin plays a leading role alongside physical assets. Bitcoin exploration can be an important hedge with the economy to strengthen the government or the central FED to control inflation.

[Gurujebs]

This is called central bank digital currency (CBDCs) which are seen as a hedge with the country's conventional money system which can mitigate the effects of inflation to some extent. In that case, if the widespread use of Bitcoin can be increased, it can have a positive effect as an important hedge for a country's economy and help reduce inflation.

Also do you have any recommendations?

How many times have you seen an update from CBDC? That's tell you that the digital currency will soon be forgotten that it was ever created. I was seeing their headlines on news around April but I can't say for now and people are not using if because what's that special value about it, it's just dollar pegged to another currency which people don't like to use.

A dollar bill is the same value as dollar the CBDC will provide, how are they going to reduce inflation? I just think they will help the central bank to mop the money in circulation and in that case low supply of money might gives value to their country but the demand for dollar has increase  and the request of people will increase the supply.

[Gurujebs]

Delete

[Wiseman]

I would say that inflation is something that is affecting all people and there is nobody that is exempted on this malady. With the understanding that we have now on inflation, this is the beast that is so difficult to tame once it starts to roar. And it even affected the United States of America, of all countries. Inflation is one that can penetrate even our personal lives. For me, inflation is something that will slowly creep into any nation's economy and there is no stopping it...the only big problem if inflation will happen in an abrupt and sudden manner as the people are unprepared for the pressure. Nobody can stop inflation. So what we can do? We can invest in assets that will increase in value over time. And Bitcoin is one of those assets under this category. Just as simple as that. The only problem is finding the money in this difficult time to buy more Bitcoin.

I agree with you that investing in bitcoin is a good way to save money, I don't think bitcoin will be worth $1 million but I think that by buying bitcoin during a market dip you can make a little money and at least save your money by outpacing inflation with the help of the bitcoin price.

Exactly and Bitcoin's profit is way more decent compared to putting money in the bank or getting CBDC which is mostly stable coins. That would be an advantage if we are gonna choose Bitcoin over other investments. The only problem here is inflation which the world is currently facing and the solution to that is investing in Bitcoin.

I think it’s very stupid to put your money in a bank, essentially they don’t give you anything, and those small percentages for the fact that you give your money and they might not give it back to you are not significant at all, in the last few years I think that all banks should be avoided and used only as a means of payment, you should invest in bitcoin or if you’re afraid, then in real estate.