Post
Topic
Board Bitcoin Discussion
Re: Is Bitcoin anti-inflation?
by
odolvlobo
on 22/09/2022, 22:24:05 UTC
According to many analyzes, inflation is caused by the printing of money by the Central Bank. Excessive printing of money will create an imbalance in supply and demand, which will have a negative impact on the balance sheet.
As a person who really loves BTC, I want to ask, is Bitcoin anti-Inflation?
Printing of money caused inflation? which of the analyst gave you this information? Printing of excess money suppose reduce inflation since there is enough money to be spend in the country. If the money have been printed excess then the supply of money in the country or the nation will be high and the demand (spending rate) will also be high so where does the inflation comes in? Bitcoin is not here to remove inflation.

It is basic economics. Money-printing causes (or at least contributes to) inflation.

If the money have been printed excess then the supply of money in the country or the nation will be high ...

Yes, and when the supply of something increases, its unit value decreases. The money is worth less so things cost more -- inflation.

... and the demand (spending rate) will also be high.

Yes, and when demand for goods increases, the prices of those goods increase -- inflation.

Zimbabwe does it right. Shocked Grin

Exactly.

Bitcoin is not here to remove inflation.

I agree with you on this point. Bitcoin will actually increase inflation (as measured in fiat currencies) because it will reduce the demand for those fiat currencies, lowering their values.