Quote from: rby on Today at 02:07:15 PM

Quote from: Blisszi on February 22, 2023, 05:33:55 PM

Many nations at point of time are going through cashless policy and this policy affects price of things in different market regions of the world.

Can inflation which is the high demand of price over few goods or products actually controls the stability of bitcoin pumping or going down?

Because I believed where people are facing high price over fewer goods makes it difficult for people to trade bitcoin with little or no capital! So can inflation makes the market cap of bitcoin not having a reality face of surviving?

It is said that bitcoin is not affected by inflation, that infact bitcoin was created to hedge inflation. In some aspects the theory is correct but in some aspects the theory is faulty. This is because money used in investing into bitcoin is not from vacuum. When the economy is bleeding, people will no longer invest in bitcoin and people who already invested will start making withdrawals to sustain themselves in the harsh period, from there bitcoin will respond to the inflation.

therefore indirectly inflation affects bitcoin, even though bitcoin aims to tackle inflation. but currently fiat currency is still the main value from all aspects, even though many countries suggest reducing the use of cash, but the value of bitcoin is very volatile and of course political interests that have not been able to make it a legal currency even though only as an alternative payment for now