Post
Topic
Board Speculation
Merits 2 from 1 user
Re: What do you think the effects of soaring prices and fiat depreciation is on BTC?
by
Lucius
on 13/03/2022, 15:23:51 UTC
⭐ Merited by pooya87 (2)
In my experience when fiat is dumping people will look for a way to keep their purchase power or at least part of it. That is achieved by investment. I believe bitcoin has become a viable investment for many because of its deflationary nature and the fact that it has been performing excellently all these years.

I would agree with this thinking that people have an understanding of what Bitcoin really is and how it can help them become more financially independent, but I don't think there is a global awareness of that at the moment. If we take into account that according to some estimates there are at least 100 million people in the world who invest in cryptocurrencies (meaning not exclusively in Bitcoin), and even if we double that number to 200 million - globally very few people are willing to invest in Bitcoin.

In times of inflation and wars, people have been very careful with their money so far, I wonder if it is the same now or they will start to think differently.

How much do you think bitcoin price is going to rise this year because of all this economical drama?

The beginning of the year was not promising in that regard, but it seems to me that we should not expect any spectacular things in terms of price in the current conditions. I think it's good that the price stays stable in the range of $35k to $45k, and that upper limit so far shows very high resilience. It is difficult to say what will happen with the war and how drastic the inflation will be, and the price of Bitcoin will depend a lot on it.