Bitcoin role in controlling inflation

[hugeblack]

At the present time, with the current capacity of the Bitcoin market, it is difficult for Bitcoin to have a positive impact on the economies of countries. Doubling profits every 4 years will not help countries achieve economic growth that requires billions of dollars, and countries cannot use Bitcoin as a guarantee to obtain development projects.


In short, Bitcoin is still in the early stages of achieving a positive impact on the lives of societies and countries.


Bitcoin will be very useful in the case of individuals and improving the level of income in the long term for individuals, especially those who have an income in excess of their basic needs.

[Rubel007]

At the present time, with the current capacity of the Bitcoin market, it is difficult for Bitcoin to have a positive impact on the economies of countries. Doubling profits every 4 years will not help countries achieve economic growth that requires billions of dollars, and countries cannot use Bitcoin as a guarantee to obtain development projects.


In short, Bitcoin is still in the early stages of achieving a positive impact on the lives of societies and countries.


Bitcoin will be very useful in the case of individuals and improving the level of income in the long term for individuals, especially those who have an income in excess of their basic needs.

I agree with you, we can refer to El Salvador for this, although the country has come a long way in Bitcoin adoption but has yet to see a positive impact on the economy with the help of Bitcoin. This definitely requires a long time. Even if the value of Bitcoin doubles or slightly more every four years, it cannot play a positive role in the countries economy. But if one can invest at the individual level, it will definitely create a positive impact for long time holding.

[NotATether]

Bitcoin doesn't really have a hand in global inflation. It's just something that (smart) people buy when they expect the dollar to deprecate or markets to crash, similar to gold and oil?

For it to have a role in controlling inflation, first it must be something that governments recognize and actively use. It doesn't fulfill either of those criteria.

[_act_]

For it to have a role in controlling inflation, first it must be something that governments recognize and actively use. It doesn't fulfill either of those criteria.

Even in countries like El Salvador that make bitcoin a legal tender, most people only used bitcoin for remittance and other things in a way that they will convert the bitcoin to dollar in the country. Fiat is deceiving because people thought the price is stable. Not knowing that it is an asset that always decrease in value but over long period of time. Even if the government adopt bitcoin, people will still prefer to use their fiat but bitcoin only for investment.

[MrSpasybo]

At the present time, with the current capacity of the Bitcoin market, it is difficult for Bitcoin to have a positive impact on the economies of countries. Doubling profits every 4 years will not help countries achieve economic growth that requires billions of dollars, and countries cannot use Bitcoin as a guarantee to obtain development projects.

In short, Bitcoin is still in the early stages of achieving a positive impact on the lives of societies and countries.

Bitcoin will be very useful in the case of individuals and improving the level of income in the long term for individuals, especially those who have an income in excess of their basic needs.

What you say is correct at present: BTC marketcap is still small and insufficient to rescue governments from public debt. Governments will still have to print more money out of thin air, and inflation will continue to exist and worsen. Only those who invest in BTC will benefit from its price increase, as they have chosen to hold an asset of extraordinary value over time.

Another typical case is the success of El Salvador after adopting BTC at a national scale. El Salvador has attracted more tourists, received more investment to develop the country, and paid off its debt. This is a beautiful scenario for a small country with a GDP of only a few tens of billions of $.

However, in the future, BTC could truly change many familiar things in the economy: BTC could become the standard for fiat, meaning that governments cannot arbitrarily print more fiat because everyone can check on-chain data about the government's BTC reserves. BTC could also become a valuable asset class like gold, and governments could use BTC as a tool to strengthen their national financial power.

[Hamza2424]

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?

Hmm, that is not how the economies are gonna survive, TBH buddy I'm not an economist but with the learnings of such topics what I've concluded is Bitcoin is good at a personal level to avoid the informatory impact of the economy on your savings, as Bitcoin provides good ROI in a specific cyclic timeline and Bitcoin's supply is limited by a number but the total market capital is always growing on a macro scale it works as a hedge against inflation.

[ZAINmalik75]

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?

We have a living example of El Salvador their economy is improving now because the price of BTC is higher than the rate they bought it. They are starting some programs to attract foreign visitors and providing facilities that will attract more investors to their country. The situation for them has changed due to the adoption of BTC.

Many countries adopted BTC like currently Japan is accumulating BTC and has bought BTC by taking loans. It was their plan to keep their local currency's price stable and Russia is also doing the same by adopting BTC.

[KingsDen]

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.

People are just misusing the concept that bitcoin fights against inflation. This is only achievable when it is about personal finance and the fighting against inflation and it is not about a whole country. There's no how a country will stop printing money. Since the country's currency is unlimited in supply, owning bitcoin which has a limited supply might in a way or the other give the individual an edge over others in the country.
But nowadays, bitcoin is being overrated to be the Messiah of the whole world forgetting that it is a purely volatile asset.
The CBDC is just the fiat in a digital form which is also affected by anything that affects fiat. So, there's nothing special about it.

[Crypto Library]

Hmm, that is not how the economies are gonna survive, TBH buddy I'm not an economist but with the learnings of such topics what I've concluded is Bitcoin is good at a personal level to avoid the informatory impact of the economy on your savings, as Bitcoin provides good ROI in a specific cyclic timeline and Bitcoin's supply is limited by a number but the total market capital is always growing on a macro scale it works as a hedge against inflation.

And if we look from the others side then we will also see that if we do save our money on the bank then after one year we will see a inflation that will cross the rate of bank APY.
And I have previously experienced something like this. And after observing these what I understood is what ever we do with our money buy the land or gold or invest in bitcoin can make us profitable but saving on the bank mean you are loosing your assets gradually.

[nakmantu99]

Hmm, that is not how the economies are gonna survive, TBH buddy I'm not an economist but with the learnings of such topics what I've concluded is Bitcoin is good at a personal level to avoid the informatory impact of the economy on your savings, as Bitcoin provides good ROI in a specific cyclic timeline and Bitcoin's supply is limited by a number but the total market capital is always growing on a macro scale it works as a hedge against inflation.

And if we look from the others side then we will also see that if we do save our money on the bank then after one year we will see a inflation that will cross the rate of bank APY.
And I have previously experienced something like this. And after observing these what I understood is what ever we do with our money buy the land or gold or invest in bitcoin can make us profitable but saving on the bank mean you are loosing your assets gradually.

I never keep much money in the bank, I prefer to invest in property or gold, before I knew crypto. For now I prefer to buy bitcoin and hold it because it is more profitable than investing in property and gold. That's my opinion, even though the risk is big but bitcoin gives big profits.

[Crypto Library]

I never keep much money in the bank, I prefer to invest in property or gold, before I knew crypto. For now I prefer to buy bitcoin and hold it because it is more profitable than investing in property and gold. That's my opinion, even though the risk is big but bitcoin gives big profits.

I have already said that putting money on the bank with the fiat currencies that means you are loosing your asset gradually like in my country there are records of inflation about 15%+ in a year.
So I always try to saved my assets on crypto like bitcoin and the stable coin and also some other altcoins. And I want to also say that it is always best to make diversification on the assets like hold your asset by buying land , or the gold or in bitcoin and on the stable fund and also have cash in hand.

[Faisal2202]

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?

How can you say CBDCs can be used as a hedge against conventional money systems I mean CBDC is only digitalizing the money and where it is coming from and going to. It will regulate the use of money like it will reduce corruption, and increase the control of money but don't get how it will reduce inflation as inflation is bound to the economic situation of the country.

If the economy is not good and the decision the government is taking is wrong then CBDCs won't do anything. Speaking of BTC national reserve is a good idea but my government has not adopted it so I will not be hoping them to add it to their reserve but if they do it now I will say its a bad idea. Because BTC is high.

[rizqillah]

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?

How can you say CBDCs can be used as a hedge against conventional money systems I mean CBDC is only digitalizing the money and where it is coming from and going to. It will regulate the use of money like it will reduce corruption, and increase the control of money but don't get how it will reduce inflation as inflation is bound to the economic situation of the country.

If the economy is not good and the decision the government is taking is wrong then CBDCs won't do anything. Speaking of BTC national reserve is a good idea but my government has not adopted it so I will not be hoping them to add it to their reserve but if they do it now I will say its a bad idea. Because BTC is high.

I don't think CBDC reduces inflation, I haven't found any articles about it. You are right CBDC digitizes money so it makes it easier to transact and can control its movement, that's my opinion. because everything will be digital in time.

[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?

How can you say CBDCs can be used as a hedge against conventional money systems I mean CBDC is only digitalizing the money and where it is coming from and going to. It will regulate the use of money like it will reduce corruption, and increase the control of money but don't get how it will reduce inflation as inflation is bound to the economic situation of the country.

If the economy is not good and the decision the government is taking is wrong then CBDCs won't do anything. Speaking of BTC national reserve is a good idea but my government has not adopted it so I will not be hoping them to add it to their reserve but if they do it now I will say its a bad idea. Because BTC is high.

I don't think CBDC reduces inflation, I haven't found any articles about it. You are right CBDC digitizes money so it makes it easier to transact and can control its movement, that's my opinion. because everything will be digital in time.

CBDC is a digital form of fiat from a country's FED that is not able to hedge against inflation. Too much digital currency can fuel more inflation in the market. In my opinion Bitcoin can play a huge role in controlling the inflation of a country if it can be used in imitation of CBDC along with fiat following a different economic policy. Bitcoin can be considered as a hedge with the economic activity of that country.

[nakmantu99]

I don't think CBDC reduces inflation, I haven't found any articles about it. You are right CBDC digitizes money so it makes it easier to transact and can control its movement, that's my opinion. because everything will be digital in time.

CBDC is a digital form of fiat from a country's FED that is not able to hedge against inflation. Too much digital currency can fuel more inflation in the market. In my opinion Bitcoin can play a huge role in controlling the inflation of a country if it can be used in imitation of CBDC along with fiat following a different economic policy. Bitcoin can be considered as a hedge with the economic activity of that country.
[/quote]
Yes CBDC cannot protect against inflation, it is just a digital form of FIAT currency. but it is a good development if every country has started to create their digital currency. Bitcoin may be a hedge, but we know the price of bitcoin is very volatile. Because I think bitcoin is suitable for long-term investment where the price is getting more expensive.