Recent news on U.S. dollar inflation has prompted a series of reactions from the crypto community. They noted that the event should push people towards Bitcoin (BTC), comments from the crypto community championing Bitcoin as a strong hedge against U.S. dollar inflation.
The U.S. Bureau of Labor Statistics recently reported a 7.5% increase in all item parts of the Consumer Price Index (CPI), the most commonly used inflation indicator. After this, Digifox founder Nicholas Merten explained that the dollar may be worth half of its current value in the coming years at the current inflation rate.
Quoting Merten's tweet, Tuesday (15/02) politician Jo Jorgensen expressed his excitement in participating in Bitcoin through a Facebook post. On Twitter, crypto analyst Lark Davis also took this opportunity to joke about selling BTC, "hedging inflation" while "inflation went crazy." User MarcTradePro replied, "Of course not! #BTC is the gold of the future, and the future begins now."
Meanwhile, Binance CEO Changpeng Zhao also used the opportunity to promote Bitcoin and Binance Coin (BNB) using his Twitter account.
On the other hand, crypto investor Anthony Pompliano thinks it's time to share a well-known inflation quote from American economist Milton Friedman.
Inflation is a measure of a decrease in the value of a currency that results in an increase in the price of goods and services. This usually happens when the price of an asset falls as supply grows.
For example, if the U.S. continues to print more dollars, the USD's purchasing power could grow weaker, increasing the price of goods and services. According to billionaire Carl Icahn, a crisis is possible, given the way the country prints money.
On the other hand, BTC has a fixed supply of 21 million, and there will be no more printed after the last BTC is mined. Because of this, many argue that BTC is a good hedge against inflation.