Bitcoin: Inflating The Prospects Of Deflation
With Bitcoin, deflation could make cost of living more affordable, increasing the attainability of assets for all.I am sure most of us, at some point or another, have been confused about the effects of deflation versus inflation. This article is meant to be a quick overview of deflation, its effects on the dispersion of wealth and how we can better understand what is happening within our economy. Before diving in, it should be noted that this article isn’t meant as an in-depth overview. There are countless articles that go in-depth into the causes, by-products and outcomes of inflation and....
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Although it has been overshadowed in recent months by mostly regulatory news, the issue of deflation and bitcoins is still a topic worthy of debate. It was one of the biggest criticisms that faced bitcoin earlier this year as the price rose to an all-time high. Most of the bearish views on bitcoin deflation came from economists, who may or may not have understood the true nature of bitcoin. What is deflation? The general idea is that deflation is a decrease in the price of goods and services. In this case, we are specifically talking about bitcoins. As bitcoin's value goes up, the cost of....
Tesla CEO Elon Musk has warned that a major rate hike by the Federal Reserve risks deflation in the U.S. economy. Musk’s warning followed an analysis by Ark Invest CEO Cathie Wood, who cautioned that “Leading inflation indicators like gold and copper are flagging the risk of deflation.”
Elon Musk, Fed Rate Hikes, and Deflation
Tesla and Spacex CEO Elon Musk tweeted Friday evening that “A major Fed rate hike risks deflation.” His tweet has attracted much attention. At the time of writing, it has been liked 80K times and retweeted almost 7K....
In this episode of Fed Watch, the hosts discuss the technology-driven deflation debate. The post Video: Debating Technology-Driven Deflation appeared first on Bitcoin Magazine.
On a zoomed-out scale, the U.S. dollar has been rapidly inflating against bitcoin since the time one bitcoin reached parity with one dollar in 2011.
Bitcoin price could resume its downtrend if the Fed keeps on hiking rates against the prospects of a rising unemployment rate. Bitcoin (BTC) has rebounded by 20% to almost $22,500 since Sep. 7. But bull trap risks are abound in the long run as Elon Musk and Cathie Wood sound an alarm over a potential deflation crisis.Cathie Wood: "Deflation in the pipeline"The Tesla CEO tweeted over the weekend that a major Federal Reserve interest rate hike could increase the possibility of deflation. In other words, Musk suggests that the demand for goods and services will fall in the United States....