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Bloomberg: Bitcoin inflation has been negative 99.99% in the last 10 years


Bloomberg economists’ studies show that bitcoin inflation has been negative 99.996 percent in the last 10 years. According to them, almost half of the recent increase in the price of bitcoin is due to the fear of people around the world of inflation.

to the Report Crypto Potito, Bloomberg has recently found that investors are using bitcoin to protect themselves from fears of rising inflation around the world. The company said that bitcoin could be “the best investment to fight inflation,” depending on how individuals view it.

Bloomberg economic correspondent John Authers, after analyzing the statistics, found that Bitcoin has achieved a negative inflation of 99.996 percent in the last 10 years. The price of a bitcoin in 2011 is equal to 0.004% of its current value. The US Consumer Cost Index (CPI), meanwhile, has risen 28 percent since then.

Consumer costs generally refer to the amount of money that individuals and households pay to use goods and services.

Bitcoin reached a new record high just days after the release of the US Inflation Statistics in October. Consumer spending in the United States has grown 6.2 percent since last year, the fastest growth since the index in the 1990s. In addition, inflation has risen by nearly 15 percent when we use 1980s metrics to measure the Consumer Cost Index.

Bloomberg economists estimate that almost half of the recent rise in the price of bitcoin was due to fears of inflation. The other half of this increase is due to trading based on price movements or Momentum Trading.

Bjornberg economists Bjorn van Roye and Tom Orlik say:

Our model shows that for Bitcoin, the importance of inflation and counteracting uncertainty over time become more important drivers. 50% of price movements in the recent uptrend [مربوط به این معیارها بوده است که] Compared to 20% in 2017 [رشد قابل‌توجهی داشته است].

The introduction of bitcoin as an investment tool to combat inflation is on the rise. Last month, Paul Tudor Jones, a well-known billionaire and hedge fund manager, said that bitcoin performed better than gold in investing risk. That’s why JP Morgan values ​​bitcoin.

This is not a surprising coincidence. While the M2 money supply in the United States has grown by almost 40% in the last two years alone, Bitcoin monetary policy has been consistent and its supply velocity is declining. M2 money refers to all cash on the market, savings and bank deposits. There will never be more than 21 million bitcoins, which makes bitcoin rare and reliable.

However, Bloomberg acknowledges that bitcoin has not yet gained enough credibility to be considered a guaranteed investment against inflation. Wilfred Daye, director of Securitize Capital, continues to say that gold is a better option, although bitcoin is a new and exciting concept.

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