Post
Topic
Board Bitcoin Discussion
Re: How will bitcoin beat hyper inflation?
by
Zoomic
on 29/03/2025, 07:56:20 UTC
We (bitcoin enthusiast) often preach that investing in Bitcoin is a hedge against inflation.
If inflation is the main problem in these countries, how do you think Bitcoin could help solve their economic crisis?
So many things can cause hyperinflation in a country. The first step to solving the problem of hyperinflation is by identifying the root cause of it and tackling it from there. I do not believe Bitcoin can be the solution to a country's economic crisis when the country itself hasn't tried to put things in order for themselves.

However if the country intends to use Bitcoin to resolve their issues, they can can decide to create a Bitcoin strategic Reserve. Although this approach will not generate results immediately, but no worries, bitcoin is a store of value which is not affected by inflation. In the long run returns generated from this Bitcoin Reserve can help stop these countries in question from excessive reliance on external borrowings (I.e if that is the main cause of the hyperinflation) which has affected the country's economy negatively.