I was aware that after all the money printing and giveaways during the COVID was just delaying the payment of the crisis ´till a moment in which the economy could possibly take better care of it. However, it was certain that the true cost of the crisis was not being paid. But here is the bill: Soaring inflation, happily accepted by governments in Europe and mainly in US: 5% YoY in August.
This is bad news for most, however it is good news for bitcoin that benefits from inflation and loose financial policies. Keep hodling!
Everyone should be wary about gloating at higher inflation in other assets and currencies, because Bitcoin might not be the golden bullet that everyone thinks it is. What really happens when inflation starts creeping up? Peoples salaries cannot keep up with the increases of pricing of products or even housing around them. What does that cause them to do? Reign in spending and recall the money that they have invested in things like stocks/cryptocurrency/gold so they can actually survive with their spending. Then we slowly move into a recession and the effect keeps on multiplying which is why central banks were printing so much money to start with - trying to stabilize the economy from the last recession. It is a double edged sword, so be careful what you wish for as it might have unintended consequences.