One Twitter user noted with concern that the cost of basic necessities has increased significantly, and that such a state of “hyperinflation” usually hits those who are at the bottom of the “money pyramid”.
It seems that inflation and declining living standards are becoming the norm, and the benefits of switching to bitcoins and digital assets that are capable of saving value seem more obvious.
Huge inflation for usa
According to a crypto enthusiast and software developer Lyle Pratt, inflation in the United States for 1997-2017. accounted for more than 55%. It is for this reason that Pratt proposes to switch to the plan ₿ – the adoption of Bitcoin.
Using bitcoin as a store of value will help mitigate the impact of inflation, which has a noticeable impact on the most important aspects of our life.
It's time for plan ₿. pic.twitter.com/UrTmm95L30
– Lyle Pratt (@lylepratt) April 14, 2019
"It is time to move to plan ₿."
In the list: hospital services; college textbooks; college tuition; childcare; medical services; wage; housing services; food and drink; new cars; household furniture.
Pratt presented a graph showing the rising cost of education, medical services amid relatively small wage growth, while the cost of cars, furniture, clothing, cellular services and some other things remained at a low and affordable level.
It seems that, in general, the rising cost of the main aspects of our life, shown by Pratt, really suggests that it is time to accept Bitcoin as a means of preserving value, which does not lose its purchasing power over time.
Inflation of fiat money usually means that prices for goods and services are rising, while the purchasing power of this money is decreasing. (If the price of a product increases over time, but its quantity and quality remain unchanged, this is called inflation).
An increase in the stock of currency in circulation leads to inflation — its excessive emission, which, in turn, leads to an increase in demand for products and an increase in their prices.
Bitcoin inflation rate – below 2% per year
Satoshi Nakamoto created Bitcoin in order to have a stable level of inflation, for example, like gold. Bitcoins can be no more than 21 million coins, and this turns them into a scarce asset. Thus, the shortage and high demand can lead to an increase in the price of Bitcoin and the subsequent decrease in the level of its inflation.
In July last year, the Bitcoin inflation rate was only 4.25%, and in subsequent years this level should not exceed 2%, as the mining of the coin becomes more difficult and less coins are created.
Although it should be noted that in recent years, the depreciation of American fiat money has slowed significantly compared with previous years – from 1900 to 2018, US dollar inflation was 2900.45%. For example, the $ 100 of 1900 is equivalent to $ 3,000 in 2018, and this indicates a huge depreciation of money.
Therefore, market experts now argue that US dollars are a bigger bubble than bitcoin , at least in terms of asset deficit and simple mathematics, which concerns the issue of money in general. Now it is quite difficult to accurately determine the amount of US dollars in circulation, because issuing fiat money, unlike bitcoins, is an opaque process.
In contrast to sovereign currencies, Bitcoin is excellent in terms of value preservation, protected from political interference, and even often regarded as a “threat to banks”.
Thus, we can talk about the long-term optimism associated with Bitcoins, since people and even some banks can turn to Bitcoin as a digital means of preserving value. Bitcoin's “anti-inflation” properties help people navigate the ever-growing cost of living.
Publication date 04/16/2019
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