Bitcoin: Why is it The Best Bet Against Inflation?

Inflation has begun to rise again. For the past few months, India’s annual inflation rate has been climbing, as has been the case in many other nations. As a result, more individuals are looking for measures to safeguard their assets against inflation, and cryptocurrencies like bitcoin appear to be a great hedge. It is argued that money printing by the central bank would lead to inflation or the devaluation of money over time. In comparison, Bitcoin has a set limit of 21 million coins that may ever be minted. Because of its limited supply, bitcoin is resistant to inflation. Let’s take a closer look. Inflation – A Basic Overview Simply put, inflation is the rising cost of goods and services. In other words, rising prices reduce people’s purchasing power. Therefore, formerly lower-priced goods and services now demand more fiat cash to be acquired. A chocolate bar that cost $10 two years ago now $20. The culprit is inflation. Inflation can be caused by a variety of macroeconomic and microeconomic variables. Most observers feel that persistent inflation occurs when the amount of fiat money in circulation increases in a way that does not correlate to the country’s economic progress. To keep inflation under control, most countries have a national central bank. It regulates the supply of fiat money in circulation and establishes credit limits for the benefit of the national economy. However, these measures have failed time and again,...