Re: If inflation is rising, why isn't crypto more valuable now?
The US Dollar's inflation is on the rise as the pandemic coupled with the Russia-Ukraine crisis have damaged the global economy. Any negative effects on the US Dollar will surely affect other countries' economies, since it's the world's reserve currency. Considering that inflation has increased at a fast pace since the start of 2020, scarce assets/commodities like Gold and Bitcoin should've increased tenfold by now. Yet, Bitcoin is struggling to reach a new All-time-high in price while Gold's been unable to get past $1.9k. In the crypto market, Bitcoin is the one cryptocurrency that moves everything with it. So if Bitcoin goes down, so will the rest of the other coins being traded on the market.
My question is why isn't crypto rising in price if inflation on major Fiat currencies have soared like crazy? Am I missing something here? It's a shame since Bitcoin was long hailed to be a safe-haven asset like Gold. Your input will be greatly appreciated. Thank you.
My question is why isn't crypto rising in price if inflation on major Fiat currencies have soared like crazy? Am I missing something here? It's a shame since Bitcoin was long hailed to be a safe-haven asset like Gold. Your input will be greatly appreciated. Thank you.
As you look closer, Bitcoin in 2017 is last quarter of the year it was nearly 20k, now inflation hits hard and it is around 30k USD. If you compare them in terms of purchasing power, the difference is not too far and what you can buy with those money you will only have a little bit of now. I was wondering also why is it like this, did bitcoin really is the future that most of us are awaiting for? I guess it should be at the price of a hundred dollars or more at this moment but it ain't giving us hope as we see it.