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Currency volatility and hyperinflation appeared unreal before a worldwide pandemic hit, creating economic chaos in several countries. Most economists started to wonder if the pandemic’s end would herald the advent of a new Venezuela, which is currently experiencing 438 percent (hyper) inflation.
However, as many other Bitcoin enthusiasts, podcaster Max Keiser believes that inflation and the price of Bitcoin are connected. Where fiat holders struggle, Kaiser claims Bitcoiners would prosper from the phenomena. In a tweet, Keiser predicted that Bitcoin’s price will rise this year, likely to $222,000, due to inflation. Keiser wrote to his fans on Twitter:
#Bitcoin price is signaling fiat money around the world is in a hyperinflationary collapse against Bitcoin. Please keep boosting inflation so my 2021 target of $220,000 comes sooner! ?? https://t.co/NTqMmiH9YQ
— Max Keiser (@maxkeiser) March 15, 2021
Keiser’s viewpoint is likely influenced by the fact that firms and retailers see cryptocurrency as a store of value asset, rendering it an ideal shield against inflation. Experts also recently concluded that since Bitcoin is resilient to political shocks, more citizens would prefer the currency to decouple commerce from “economic occurrences.”
And if the price of Bitcoin increases, the road to the target can be chaotic. The asset’s price has risen and fallen many times in the past. However, others say that even though the price of Bitcoin rose, the rate of inflation and inflation expectations “remained stable.”
Some argue that markets need a little more inflation, not less. Around the same time, they do not expect hyperinflation to reoccur following the recent great recession.
Many people are comforted by Bitcoin’s limited supply, which may overcome inflationary dangers. This story, on the other hand, is continually changing. There is also an argument to be made for altcoins like Ether to be a possible deflationary commodity. For example, also in the absence of a strict supply limit, Ethereum may provide a fee-burning function that removes coins from circulation, enabling it to serve as another possible hedge, similar to Bitcoin.