Any chance the inflation we notice in real life is connected to digital currency?
The less the dollar is worth the less the BTC is worth...
It seems like a hedge against itself..
Input?
Any chance the inflation we notice in real life is connected to digital currency?
The less the dollar is worth the less the BTC is worth...
It seems like a hedge against itself..
Input?
You are actually not too far off, just opposite. Its not that the inflation is caused by the digital currency. Its that the real inflation (which is orders of magnitude higher) is being hidden by using digital currency.
Let me explain. Lets take a step back and understand what the real financial problem is. Simply put, in the fiat currency based financial system, central banks keep printing money as they please to fix all their problems. For instance three months before plandemic started they started printing roughly $100 billion a month, and its been going on even now. Why do they need to do it? Because plandemic is expensive and needs funding.
What happens when you print $100 billion each month? More money in the system, causes prices to rise and causes inflation. There are many ways the Central Bankers hide this fact (because if they dont hide it, governments will fall when people see prices rising):
Fudge the CPI numbers
Suppress prices through derivative market (paper silver, for example)
Destroy local markets and outsource cheap labour
Dump much of this free money into stock market and inflate it, rather than let it enter the economy and cause prices to rise.
Dump it into luxury goods market (checkout the inflation in prices in brands like Chanel)
Create wars to distract (and to blame as scape goat)
But all of these can go only so far. This time around they needed more ways. One was digital currency. They hyped it up so the people who found all this new (ill-gotten) money would dump it all into Bitcoin, taking it off the market and cause prices to rise.
TL;DR - Inflation is caused by printing free money. Pumping up BTC is one way in which to hide the real inflation.
Nice!
May I say that pumping money into the system does not cause the inflation. Banks wanting to capitalize on the increased money distribution do. They raise their variables and start calling money in, in turn everyone "needs" to raise their prices to cover the sudden demand for payment. It's greed, really, working in the debt system.