Hundreds of Billions Flowing into Bitcoins Due to Inflation in the US

 The rate of inflation within the United States has solely reached 7%, that is that the highest figure in forty years. Recent reports on the buyer index (CPI) could halt the decline in bitcoin and etherea prices, pushing their unit values on top of 43,000 and $3,300, respectively.

Cryptocurrency as a secure place in times of inflation

Whereas in the past, in a very similar situation, investors turned to gold, which was thought-about the most effective choice for a robust hedge against dollar devaluation, currently things is different.The reaction of the cryptocurrency market to the current inflation shows the need for many people to switch to digital currencies this time around.

this is often very true for several middle to high-income voters who frantically suppose the most effective thanks to defend their money. Bitcoin, Ethereum, and similar currencies with over 160% value growth in 2021 currently have a higher probability of building themselves as appropriate alternatives to the loss important  of enactment currencies for the typical (not only) yankee investor.

the newest shopper index chart shows that energy is that the biggest reason behind inflation (33.3%), followed by housing (4.1%), food costs (>6%), transport and medical care (>2%).

The Fed proposes strict management measures

In early November, the United States Federal Reserve System (Fed) discovered that it expects more growth and proclaimed measures to curb the rise. The key to those measures is a rise in interest rates to limit the increase in debt for an exact period.

Regulators conjointly mentioned that they might get obviate most of the govt bonds value quite eight trillion USD.

in the past, the Fed has repeatedly declared cryptocurrencies to be risky assets.Due to the potential exodus of voters to crypto qualitys, he could conceive to unleash it record reserves, thereby increasing bond yields ANd attracting capitalists to speculate in virtual currencies.

inflated interest in cryptocurrencies

The past month has been marked by a wave of lack of retail investor interest in bitcoin, that Glassnode says could be a issue of the past.

With the expected rise in inflation, there are increasing voices (one of whom is Michael Saylor of MicroStrategy) claiming that BTC can become an asset with a market cap of $100 trillion. per them, Bitcoin is kind of mature and could be a smart hedge against the dollar just like the yellow metal.

Opponents, on the opposite hand, believe it's too early to tell, because it still involves high risk and volatility. this is often the most reason why the previous billionaires write it off as a mere speculative asset. Personally, I assume that if inflation fails to stay it below control, several of them may mirthfully amendment their minds.