Inflation and Crypto Currencies

[Joshua Farrell]

Could there be a potential relation to inflation, if there were a sudden increase in crypto being sold in your national currency? If so, how much do you think would need to be cashed, in order for it to affect your country national supply to that point?

 

[Stardom22]

I really don't have any idea about the relationship between the inflation and the crypto-currency at large. I bet there must be a relationship however regarding the bitcoin market trends that determines the prices

 

[Suba]

In my country there are no whales who have more than 2 thousand BTC, so so far there have been no large purchases/sells on crypto exchanges, even if there is a large trade it might be done via OTC or Darkpool so it has less effect on money circulation.

 

[riberet19]

I really don't have any idea about the relationship between the inflation and the crypto-currency at large. I bet there must be a relationship however regarding the bitcoin market trends that determines the prices

Yes, inflation increases the total supply in circulation and can have effects on the price of the asset in this case in cryptocurrencies the same effect is having on the fiat currency.

 

[saoussen5765]

Yes, inflation increases the total supply in circulation and can have effects on the price of the asset in this case in cryptocurrencies the same effect is having on the fiat currency.

The crypto currency is directly related to the economy of the countries and inflation is one big factor on the economy of the country so yes inflation affects cryptocurrency price directly.

 

[riberet19]

The crypto currency is directly related to the economy of the countries and inflation is one big factor on the economy of the country so yes inflation affects cryptocurrency price directly.

We have seen during all this time in which inflation skyrocketed that negatively affected to some extent the cryptocurrencies, that is a fact, but I refer in my case to inflationary cryptocurrencies, that is, those which do not have total supply, this can also affect the long term.

 

[Ebutech]

Could there be a potential relation to inflation, if there were a sudden increase in crypto being sold in your national currency? If so, how much do you think would need to be cashed, in order for it to affect your country national supply to that point?

Would really like the economic experts in the house to elaborate more on this and how the both terms correlate, so as to inform me a newbie my decision, in order not to make wrong investment move.

 

[Golden9]

Most people in my country would rather keep their money as cryptocurrency because of the constant devaluation of the Naira. That's coupled with inflation makes keeping money as fiat very risky.

 

[Knowledge Quest]

Most people in my country would rather keep their money as cryptocurrency because of the constant devaluation of the Naira. That's coupled with inflation makes keeping money as fiat very risky.

Yeah this is actually true. How I wish cryptocurrency would be a means of payment here in Nigeria,.

 

[Reedex]

Inflation could be fought to the barest minimum through the adoption of cryptocurrency and what is why so many people will always want to use the Bitcoin because it's a deflationary commodities.

 

[flower]

Bitcoin is a great tool and a great technology that was discovered it has gained popularity over time and that is why so many people will prefer to use this coin most especially for deflationary purposes

 

[Magnus2022]

Though there may be correlation between inflation and influx of cryptocurrency into an economy but I believe the effect will be negligible. I believe no matter of influx of cryptocurrency exchange that will be much that it will drastically rise the price of goods and services. There is also a balancing factors which will hedge the anomaly.

 

[Ebutech]

Well, I don't really know all this while that inflation has some form of connections as regards to cryptocurrency economy,thanks a tonne for the information.

The crypto currency is directly related to the economy of the countries and inflation is one big factor on the economy of the country so yes inflation affects cryptocurrency price directly.

 

[gammarays]

I don't think there's any relationship between inflation and crypto in my country since it's not a legal tender. People will only need to exchange it for Fiat which is used for transactions.

 

[uptrendfinancialsignal]

There is a direct relationship between inflation and cryptocurrency because some cryptocurrencies designed to fight and combat inflation and a typical example is Bitcoin because it is limited in supply.

 

[jetsaints30]

There is a direct relationship between inflation and cryptocurrency because some cryptocurrencies designed to fight and combat inflation and a typical example is Bitcoin because it is limited in supply.

I agree with you cryptocurrency inflation and deflation refer to how the overall purchasing power of a specific cryptocurrency changes over time.

 

[Reedex]

A deflationary cryptocurrency like bitcoin could be used to combat inflation.