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[AudraMiller]

Inflation is something that happens every year, and we do tend to see slight increases in the prices of goods and services, however generally with a slight budget adjustment we are able to account for inflation and still be able to live a comfortable lifestyle. However, this may no longer be the case. In a recent news article, it seems that the inflation in Cuba I expected to be as high as 900 percent this year alone, and this will make the economic situation very hard. For many they say that inflation rates like this don't make bitcoin an option but of a necessity to move forward. What are your thoughts on this?

 

[LutherKing]

Well they actually need to have more ways of getting outside revenue from multiple sources because 900% is a big increase in prices

 

[Josemendez]

There are countries that have been experiencing inflation but their bitcoin acceptance has changed a lot of things in the country.

 

[AudraMiller]

Well they actually need to have more ways of getting outside revenue from multiple sources because 900% is a big increase in prices

It will be very hard for lower income household to be able to manage the daily expenses and this is why people are likely to turn towards cryptocurrency to try and manage this and this risk may also be hurting their financial status.

 

[CryptoStar19]

"Hedge against inflation" is certainly one of bitcoin's narrative and a reasonable one these days.

 

[microunit]

Not just bitcoin they could also use other cryptocurrencies out there because of the inflation , stablecoins are also a good alternative for the inflation

 

[AudraMiller]

Not just bitcoin they could also use other cryptocurrencies out there because of the inflation , stablecoins are also a good alternative for the inflation

I don't think that stablecoins will actually help with inflation because they are largely tied into the value of a Fiat currency and hence if the buying power of the Fiat currency had to decrease so will the stablecoin.

 

[microunit]

There are so many countries that needs to adopt bitcoin inorder to fight inflation. Venezuela is one of such country too. The inflation rate in this country is very high and needs urgent attention. There are so many countries suffering from inflation but failed to acknowledge cryptocurrency as the way out.

Just because a country has crazy inflation doesn't necessarily mean that the only option for the country is to adopt bitcoin , there's a whole lot of other things that are needed to be think over

 

[AudraMiller]

Just because a country has crazy inflation doesn't necessarily mean that the only option for the country is to adopt bitcoin , there's a whole lot of other things that are needed to be think over

Bitcoin is definitely not the only solution and there can be a number of other potential avenues. However right now i think that this is one of the effective ways of advertisign crytpocurrency.

 

[Snowmansolito]

I think altcoins would also be a better alternative to cure inflation rather than laying much emphasis on bitcoin as altcoins a a little or more tied above most countries currencies unlike stable coins.

 

[AudraMiller]

I think altcoins would also be a better alternative to cure inflation rather than laying much emphasis on bitcoin as altcoins a a little or more tied above most countries currencies unlike stable coins.

Altcoins will not help with inflation that much because they are linked to the value of the fiat currency so essentially they are like digital versions of the fiat currency and hence i don't think it will help inflation rates.

 

[Snowmansolito]

Altcoins will not help with inflation that much because they are linked to the value of the fiat currency so essentially they are like digital versions of the fiat currency and hence i don't think it will help inflation rates.

But if you consider some altcoins like litecoin, the rate is over the normal fiat currency with considerable differences. Probably in some instances it may have a good number of effect

 

[Mariappa45]

It's a necessity indeed to move forward, inflation doesn't affect BTC, since it's a hedge over inflation. Your funds stays with BTC and never get devalued when compared to fiat currency.

 

[AudraMiller]

It's a necessity indeed to move forward, inflation doesn't affect BTC, since it's a hedge over inflation. Your funds stays with BTC and never get devalued when compared to fiat currency.

This is true, however i think that the risk of cryptocurrency and its volatility could actually start to outweigh the effects of inflation and this could potentially be a big concern moving forward.

 

[Wisdom01]

Bitcoin will no doubt help reduce the high inflation , because many would be so involved and concerned towards investing on Bitcoin and this would reduce money in circulation

 

[Mariappa45]

This is true, however i think that the risk of cryptocurrency and its volatility could actually start to outweigh the effects of inflation and this could potentially be a big concern moving forward.

Lol, it can happen that way as you said it. Cryptocurrency can face worst bearish run, which we've seen recently where most of the coin saw -200% in its price. In this kind of circumstances it isn't a hedge over inflation anymore, cos it's worst than what we can ever imagine.

 

[Brain]

Why not it is an option since inflation don't affect btc. So it is better to even store your money in Bitcoin and maybe in other crypto currency. Inflation in my country is so high that our currency has been highly devalued so investing in btc and in crypto is the way forward for us though the coins is still banned in my country.

 

[ELSA-ELI]

With the new discovery of a very deadly variant eminating from southern africa and my country inclusive we have to brave ourselves for tough times ahead and inflation will surge because we are going in a soft lock down and all flights from Zambia and south africa have been suspended.

We just have to resort to use of cryptocurrency for the supplimentary income as there will be a reduction in the supply of goods and services.

 

[AudraMiller]

Why not it is an option since inflation don't affect btc. So it is better to even store your money in Bitcoin and maybe in other crypto currency. Inflation in my country is so high that our currency has been highly devalued so investing in btc and in crypto is the way forward for us though the coins is still banned in my country.

That is what a lot of people are doing and it makes sense to do this because cryptocurrency is only influenced by demand and supply and therefore it is relatively free from inflation. And with more and more people getting towards cryptocurrency because of the inflation rates, we are likely to see a massive rise in the price as well.

 

[Wisdom01]

That is what a lot of people are doing and it makes sense to do this because cryptocurrency is only influenced by demand and supply and therefore it is relatively free from inflation. And with more and more people getting towards cryptocurrency because of the inflation rates, we are likely to see a massive rise in the price as well.

Very true ,I think when people are seeing that their value of investment is detiorating with the existence of cryptocurrency ,I guess it would actually lure them more to invest in cryptocurrency , because they would actually want to gain more from the investment in cryptocurrency and they would see Bitcoin as another viable option they could capitalize on too I think