Elon Musk: Cryptocurrency is protection from inflation

Inflation in the USA

The year’s inflation rate in the United States was 7.2 %, which is more than economists predicted. In December 2022, monetary prices in the United States increased by 7.5% year on year, the greatest amount since February 1982. As a result, the price change enhances the possibility that the US Federal Reserve will raise its benchmark rate by 0.5% rather than 0.25%. According to the Bureau of Labor Statistics, most economists anticipate a slowing of price increases as firms adjust to normalize demand.

Assessments

Analysts assessed the inflation of cryptocurrencies from 2014 to 2016. Bitcoin and the USD were taken for example. The results reflect a drop in inflation due to a halt in issuance. Bitcoin is regarded as one of the most stable cryptocurrencies since its total supply is limited to 21 million BTC. Because of the issuance restriction, simple calculations indicate that Bitcoin’s inflation tends to be zero. In this context, Bitcoin’s exchange rate continues to rise against the US dollar as indicated by the profitability.

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BIT4YOU.io

BIT4YOU.io

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bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.