Did Bitcoin Mask Inflation?

in bitcoin •  2 years ago  (edited)

Since the 2000 central banks are struggling to keep economy stable.

Like in Japan the interest rate went to almost 0% and stagflation still stayed.

There were tons of money spilt into the market and that should have boost investments and prices and inflation.

Since 2009 there sure was inflation in the crypto market.
A lot of fiat went into crypto. I suggest Bitcoin was an indicator of suppressed inflation.
The crypto inflation did not affect the consumer prices since crypto is not yet widely used. It did boost tech companies in the field and around it like cyber security.

When the crypto started to loose hight I think it indicates fiat moving to other investment post corona like energy, travel and enterteinment and therefor starting to affect day to day economy and inflation rose.

So what are we seeing now? Again Bitcoin and crypto are suppressing deflation. The crypto is quick sensitive market that reacts quickly to the interest rate changes.
Its automatic and have smart money. So I think crypto hints defaltion will come strong just like inflation did.

Will this circle continue forever? I think not. Crypto is more widely adopted and the correlation between crypto and day to day economy will grow stronger and tighter. And the we will see Bitcoin replacing gold as an inflation guard. And in this future Bitcoin prices will rise with inflation and not before it.


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