Deflation of 99.996% over 10 years, is Bitcoin a real anti-inflationary artifact?

Shortly after U.S. inflation hit a 31-year high, Bitcoin hit a new high of nearly $ 69,000 a coin. Some think it does, but for others, it recognizes their long-term vision. As the world's largest digital asset market, Bitcoin is the best choice for skyrocketing prices.

The key to this vision is that numerical advantages are created from scratch to be fully limited, so that they do not lose value even in the face of adversity. It is completely different from the money normally provided by the government and the central bank.

To clarify this hypothesis, analysts compared the value of Bitcoin and the United States. Statistics show that over the past decade, US inflation has reached 28%, while Bitcoin has experienced deflation of 99.996%. In other words, Bitcoin 10 years ago was only 0.004 today.

Since the US financial crisis of 2009, the notion of Bitcoin as an appreciating currency has always been there. Support from this point of view has been beneficial as US prices have risen in all directions and sustained over the past few months. to avoid inflation.

Economists Björn van Roye and Tom Orlik have pointed out that over time, the importance of hedging against the rise in Bitcoin has become an important driving force. It has been estimated that about half of the recent increase in Bitcoin was due to the success and volatility of the market, and in part to human fears of a price increase.

Analyst Strahinja Savic has shown another way to see if Bitcoin can withstand inflation. He said: “Over the past six years, Bitcoin has not only been more diluted than the US dollar, but has been more consistent and predictable and less politically sensitive. The law that determines the impact is inconsistent.

Bitcoin is too young to confirm whether it can withstand inflation.

However, there are many objections, and the best thing is that it cannot decide if Bitcoin can follow the hedge of the price increase because it did not stay on assignment.

Securitize Capital thinks so and claims that, from their perspective, gold is still a better financial asset, and Bitcoin's weak heart also makes no sense that it can resist price gains. "People love new ideas."

Duke University professor Cam Harvey also pointed out that in theory Bitcoin devices have nothing to do with the Fed or the central bank. Now it has been used all over the world.

In Cam Harvey's opinion, the Bitcoin exchange does not appear to interfere with the market as a whole, but rather behaves "like a legacy". I'm more careful. "

However, Cam Harvey also studied gold and found that although gold holds positive gains for thousands of years, its size appears to increase and decrease in a short period of time.