With Inflation At 10%, It’s Time To Get Off The Fiat Rollercoaster
Bitcoin’s greatest attribute is resistance to the chaos created by central banks’ manufactured crises.This is an opinion editorial by Captain Sidd, a finance writer and explorer of Bitcoin culture.Over the past two years, the topic of inflation went mainstream. Instead of a slow and steady 2% inflation rate in the U.S., we’ve seen 10%-plus annualized inflation in goods that are critical to our survival, like food and energy.Over that same time period, the price of bitcoin topped a parabolic rally at an exchange rate of around $70,000, flatlined, and then steadily lost value against....
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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,....
Another fiat currency struggles to stay afloat as the Venezuela Bolivar looks to be in the throes of hyperinflation, which has been forecast for at least the last 18 months. Within black-market currency exchanges, the Bolivar has lost about 50% of its value versus the US Dollar in the month of November. In a sign of desperation, the nation-state has suspended reporting of their inflation rate for the time being. Also read: "BitPagos is Bringing Bitcoin to the Developing World". Will Venezuela Suffer Zimbabwe-levels of Hyperinflation? As you may know, inflation is a part of any fiat....
Contrary to many financial institutions, analysts at Deutsche Bank have warned of global consequences that will stem from fiat inflation.
Whenever you hear, "That currency is not backed by anything!," it's almost always meant as criticism. Hard-money enthusiasts are quick to point out the horrible track record of fiat currency. Nearly without fail, currencies "backed by nothing" get heavily devalued through inflation, and they often collapse within decades. The best solution, so far, has been to tie currency to a commodity whose supply can not be arbitrarily inflated by governments or central banks, or to use that commodity directly as a currency. Gold and silver have served this purpose best, and they have been used....
It’s been quite a rollercoaster in the cryptocurrency markets the past few days. Bitcoin had a significant bull run during the first two days of the year followed by a major downturn after nearly reaching its all-time high. During this turbulent price volatility all cryptocurrency market capitalizations have been affected. The Ups and Downs of 2017’s....