Post
Topic
Board Economics
Re: Recession? How to face It?
by
GbitG
on 25/10/2023, 23:53:08 UTC
I also agree that one way to deal with inflation that will always be recommended is investing in bitcoin. Because, investing in bitcoin will help protect your finances from the impact of inflation. Apart from not being wasteful and having to look for additional work, you also have to avoid debt. Moreover, if you use debt only to fulfill your lifestyle and are consumerist in nature, it is actually less useful.
It is true that Bitcoin is an excellent investment. But what you said is that you should always recommend Bitcoin investments to deal with inflation. So do you have any proof that Bitcoin can end inflation or that it can help reduce the impact of inflation on finance? If you have any arguments, then give them to us so that we will also be aware. But it is not possible, with the excuse that you have zero tolerance, that Bitcoin can end inflation.

While I can tell you why Bitcoin cannot eliminate or improve inflation, it has a volatile nature, and there is no evidence that its market condition will remain the same tomorrow, which means price movement. It will be the same tomorrow. To prevent inflation, you need a consistent method by which interest rates are raised by reducing the supply of money in the economy, and inflation can be reduced.

It is clear that Bitcoin has high potential to prevent inflation because of its fixed supply and decentralized nature. And this is the thing that can keep Bitcoin as a hope for an inflation hedge, but Bitcoin, despite so many advantages, also has a weakness, and that is its volatile nature, due to which Bitcoin is classified as an inflation hedge or financial status. They hesitate to use it because nobody has tried Bitcoin so far, and no country is ready to try it because there are risks in something based on volatility, and economic status is a serious matter with a small risk. It will also put the financial career of a country at stake. I hope you understand my point.