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13 years ago, Satoshi Nakamoto himself said that Bitcoin helps you “escape the inflation risk of centrally managed currencies“.

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by COINS NEWS 90 Views

13 years ago, Satoshi Nakamoto himself said that Bitcoin helps you “escape the inflation risk of centrally managed currencies“.

With us being at the seemingly end of the high inflation period that we had with a recent 2.9% inflation in the US, we should look back and contemplate how Bitcoin acted during that period as BTC was quick to be deemed as a inflation-hedge by many already in 2021. If you can remember, we even had several 5%+ pumps just due to high inflation data releases.

What many did not see coming were the rate hikes of the FED and how those would drag down the stock markets too, which on the other hand is often quite coupled with Crypto, so our prices went down too.

But that should not be the final word to this discussion, so let's look at what the create himself, Satoshi Nakamoto, said:

Quote by Satoshi Nakamoto, picture from Pete Rizzo on twitter

Here we can see how already in 2010, Satoshi was talking about Bitcoin in an inflation environment. Saying that BTC would actually help people to hedge/escape against those centrally managed currencies, due to the very scarce nature of BTC through its limited Supply. Which makes sense, as BTC inflation due to limited supply is pretty much mathematically fixed and on the way below 1%.

Further we can also see how in countries of hyperinflation like Venezuela or Turkey, BTC usage actually increased a lot. Thus helping the people there to maintain the value of their money.

So it is indeed a mixed bag of whether BTC is an inflation hedge like Satoshi Nakamoto predicted a whole 13 years ago. But obviously he could not foresee the difference economical circumstances today and the journey of BTC as an inflation hedge may go on.

submitted by /u/partymsl
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