Account Info
Log Out
English
Back
Log in to access Online Inquiry
Back to the Top

Crypto is Deflationary

avatar
Sprockett wrote a column · May 2, 2022 18:44
CryptoCurrencies

Not all cryptocurrencies are alike, and there is one big difference, that makes all the difference. That difference is what sets Bitcoin apart from other coins and tokens it's what gives it, its edge. Those of us early adopters wanted to see wall street get involved to drive adoption, In hindsight, I think it was a bad move.
The overall supply of bitcoin is limited to just twenty one million coins. This is paramount to bitcoins functionality as its value increases over time, unlike fiat currency that is designed to lose value against future payments.
As we are all aware of inflation, prices on goods and services rise faster than wages eroding your purchasing power. Now consider this prices on widgets are increasing and rather quickly, the value of the U.S. dollar is decreasing over time, so your purchasing power is evaporating before you can cash your check. It seems like we are being attacked on all sides.
We do have a tool to help fight, if not reverse the effects of inflation, however, it seems as though we have forgotten how Bitcoin is deflationary and it is no wonder. We were all a buzz a few years ago with any talk of wall street offering ExchangecTraded Funds featuring Bitcoins as it would help drive adoption. That wall street collaboration didnt play out as expected as there are to many hands in the mix, too many old school hands and the reaction to uncertainty is a knee jerk sell off. Guess what, that deflationary currency you have, is acting rather inflationary unfortunately it has Fallen victim to the passive trading of ETF's and the like, automated sell orders.
In times of high inflation and uncertainty, Bitcoin should be a stalwart due to its limited supply, and decentralized network. It is a victim of the phenomenon of passive trading. The professional brokers C.Y.A. as it removes volatility from the markets and treats all assets alike. We are inexperienced with dealing with deflationary assets/currencies.
keep in mind that Bitcoin is a deflationary asset si don't go selling it off because it is fashionable.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
2
1
+0
Translate
Report
3877 Views
Comment
Sign in to post a comment
    I have been trading now for 20 years, I am self directed and taught by those who commentated on CNBC
    15Followers
    11Following
    24Visitors
    Follow