Debate Rages on Whether a Digital Dollar Will Unleash Inflation

The debate about whether Bitcoin network is becoming increasingly centralized rages on. But if the community doesn't start focusing on scalability, it may not matter anymore. Bitcoin is an open source, decentralized, peer-to-peer cryptocurrency. That has been the standard definition of the popular digital currency. But many agree to disagree with it, leading to a never-ending debate on increasing centralization of Bitcoin network. There are those who believe that it is highly unlikely for the Bitcoin network to become centralized anytime soon. And then there many who think that the Chinese....

Bitcoin’s block-size dispute rages on. A proposed change to a single parameter in Bitcoin’s reference implementation has spawned into a great debate, resulting in tireless discussion, multiple conferences , a growing split within the Bitcoin community and at least one prominent developer joining a bank-run alternative. The subject of debate itself, moreover, started out in the technical realm, predominantly relating to the increased propagation time of larger blocks, and the level of mining centralization. Over the past year, however, the same debate mostly moved into the political domain,....

Since 2010, inflation has turned $1 into 84 cents while $1 invested in Bitcoin would be worth $274,000. Bad news — the increase in the Bitcoin (BTC) price over the past decade may have been overstated because of the accompanying fiat inflation. Since Bitcoin is typically denominated in fiat — United States dollars usually — it is not immune to its depreciation.Bitcoin price versus Bitcoin price adjusted for inflation. Source: Cointelegraph.In the decade that followed the economic crisis, the U.S. enjoyed some of the lowest inflation in history, which hovered around 2% annually. However,....

America’s media, central bankers, and bureaucrats continue to debate the rising inflation in the U.S. that has raised the cost of living and increased the prices of goods and services nationwide. Senator Rand Paul, R-Ky., believes the inflation is “only going to get worse” and he published a report on the issue and blamed excessive coronavirus relief spending by Congress. Furthermore, a new decentralized method of measuring inflation has been introduced called Truflation, a tool that provides a “daily, unbiased, data-driven, real-market inflation rate.”....

A continued decline in the U.S. dollar and rising inflation expectations support bitcoin's long-term bullish case as a hedge asset.