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The future is now – New US inflation figures make a case for Bitcoin

 


The crypto community sees the new inflation data as confirmation that Bitcoin is the perfect answer to the loss of purchasing power.


The new US inflation numbers released this week have also been a hot topic in the crypto community for the past few days, with the overriding tenor being that the move to Bitcoin ( BTC ) is becoming more urgent than ever. Crypto investors see the market-leading cryptocurrency as the undisputed best hedge against inflation.


As reported by the US Bureau of Economic Data , the consumer price index (CPI) rose by a whopping 7.5%. The CPI is considered to be the most important indicator of inflation, which is why it can be deduced from the key figure that the purchasing power of the US dollar has also lost value (inflation).


Digifox founder Nicholas Merten pointed out that the US dollar would only lose more value in the coming years and that at this rate ten years ago it would only be half as strong as it is today (see below). His tip: Bitcoin.


Politician Jo Jorgensen then took Merten's tweet as an opportunity to express that, given the inflation data, she is glad that she is already "in Bitcoin". Crypto expert Lark Davis, in turn, jokingly asked whether he should sell his BTC quickly because of the weak price, even though "inflation is going crazy right now", to which crypto user MarcTradePro replied: "Of course not! #BTC is the gold of the future, and the future is now.”



Binance Managing Director Changpeng Zhao also joined the discussion, although he only pointed out quite banally that both Bitcoin and its proprietary cryptocurrency Binance Coin ( BNB ) know no inflation.


Meanwhile, podcaster and crypto expert Anthony Pompliano recalls a quote from the influential economist Milton Friedman, who famously describes inflation as “unlawful taxation”.


Inflation is a measure of a national currency's loss of purchasing power in relation to goods and services. To put it simply, this weakening occurs when the amount of currency in circulation increases and each individual currency unit becomes worth less. If, for example, the USA continues with its current monetary policy and diligently continues to “ print money ”, then the purchasing power of the US dollar will automatically be weakened as a result. Billionaire Carl Icahn warns that this could soon result in a real crisis against which only Bitcoin protects.



Unlike national currencies, Bitcoin has a fixed limit of 21 million currency units, which cannot be exceeded. This gives BTC a deflationary character, as the rate of increase in the amount in circulation gradually decreases over time, making each individual currency unit all the more valuable. For this reason, Bitcoin is often understood as a “natural” protection against inflation .

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