A study just completed by the Economic Policy Institute found that over half of price increases are from large, near monopoly corporations just raising prices and using “minor supply issues” and “labor” as excuses. Thus, relentlessly, rising profit margins and Return on Equity (ROE) confirm this.
Michael Saylor: Each new government policy brings another round of inflation. Bitcoin is the logical safe haven.
Community Reaction: inflation has been eating the purchasing power of the people. Bitcoin might become less volatile at above 1 million per bitcoin and people will start recognizing it as a safe haven.
Increasing demand and low supply is a recipe for inflation and things are not looking like it’ll get better soon. That’s why you need an asset that inflation doesn’t affect because of it’s limited supply as opposed Fiat that is unlimited. Bitcoin secures your wealth.
We are in the end game of a 50-year experiment with the US dollar as world reserve currency backed by nothing, and the Petro dollar “solution” was the same guaranteed failure for the US as the Bretton Woods agreement.
In decade before the pandemic, there were low demand and high supply, but since the pandemic and also the effects of war in Ukraine, the demand is now high with decreasing supply. So, inflation is constantly rising, that’s why you need an asset that is inflation proof– Bitcoin.
Against the background of global currency inflation, frequent asset bubbles, and money printing competitions in various countries, Bitcoin uses the concept of blockchain and the algorithm of total limit to give idealists the sustenance to get rid of the flood of paper money.
The problem is it is so complex to understand how the world including financials are running. Not a problem with Bitcoin.
Anti-Bitcoin Statements: Sometimes to get out of inflation you have to work with it. BTC lost nearly 29%. Sometimes “BTC is BTC” and an “asset is an asset”. Let’s imagine in a dystopian world where bitcoin is the only means of payment. How will that stop firms putting up prices? That’s right it doesn’t. It can’t prevent or reduce inflation nor is it a hedge against it. Fiat currency exists because it’s the best system available. Bitcoiners are delusional to think Bitcoin has any chance of a dethroning.
Bitcoin is just a notion based on nothing but a waste of energy and hype advertising. On a long enough time span, inflationary hedge it shall be. But short term we must accept that bitcoin also reflects market health and might fall during economic depression when other debts are paid first.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
Get the latest Crypto & Blockchain News in your inbox.
