Post
Topic
Board Bitcoin Discussion
Re: Does inflation affects bitcoin?
by
mindrust
on 25/02/2023, 06:40:14 UTC
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?

Inflation affects every asset and everybody. When the price of a loaf of bread rises, your food costs rise. When you pay more for your food, you will have less money to invest. If you have less money to invest, you buy less bitcoins. If you buy less bitcoins, bitcoin's price goes down. You can replace bitcoin with any other financial asset.

The only way to break this chain is getting a raise from your employer but let's be honest now... Not everybody can do that. Most people will just accept their loss to the inflation and won't try to get a raise or find a different job.

That's because a low paying job is better than having no job and the employers know that very fucking well.