So to my understanding Bitcoin during this adoption phase is more useful as a hedge against inflation (aside from being a great investment) than an actual currency since we are still two decades from having the entire supply mined and until then it is expected to appreciate consistently. I also watched a video with an interesting point concerning why bitcoin cannot truly replace hard currencies like the US Dollar given the credit/loan/welfare based society that we currently live in. This is perhaps the difficulty of not being centralized and able to freely print (as polarizing as that topic itself can be). Now crypto is certainly in its infancy and there is potential for systems or ideas to potentially account for the need of credit or supply increases, but it sounds like fundamentally, it serves best as an alternative method that operates on scarcity characteristics similar to gold but with the extra perk of being secure, decentralized and potentially cutting out third parties fees (although exchanges are operating and profiting in this space for now).
With that being said, how can Bitcoin or other cryptocurrencies help during a hypothetical or potential inflationary crisis? The Weimar Republic departing from the gold standard and printing ridiculous amounts of money to pay war reparations ultimately led to the collapse of the middle class and provided sentiment for WWII, would having an asset similar to Bitcoin during this period make any difference for people or the government in a situation like this? Would benefits only really derive from governments pegging currency to Bitcoin reserves or having institutional funds, companies and normal people putting money into Bitcoin for the period of extreme inflation to retain value?
I guess another potential interpretation is how Bitcoin will be used in the coming potential inflationary crisis if ‘transitory’ inflation turns out to be a lot more permanent than the Fed is letting on.
Also explanations on what exactly Bitcoin’s future is if you share the belief that not being able to increase its supply or have monetary policy to combat potential crises would be nice to hear or be directed to content about.
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