Inflation and cryptocurrency

Other articles published on Dec 3, 2023

Inflation can cause huge economic issues for many, especially investors. In recent years, inflation is an even larger concern. In April 2023, the inflation rate in the United States reached 4.9% .There are many causes of inflation, and currencies all over the world are susceptible to it. The relationship between cryptocurrency and inflation, however, remains a contested topic. Inflation cryptocurrency Several banks are exploring or even adopting cryptocurrencies, perceiving them as a viable asset class or considering their own digital currencies to adapt to changing financial landscapes.

Cryptocurrency inflation

“The knee-jerk reaction to the hottest inflation reading in 30 years triggered risk aversion which was accompanied with a strong dollar and weakness across the top cryptos,” Edward Moya, an analyst at Oanda, a foreign exchange brokerage firm. Bitcoin falls to a 16-month low In 1981, Federal Reserve chairman Paul Volcker raised the federal-funds rate — a key interest-rate benchmark — to 19%. A deep recession ensued, but inflation ceased, and the U.S. embarked on a multi-decade period of robust growth, low unemployment, and low consumer-price inflation. As a result, few are nostalgic for the days of Bretton Woods or the gold-standard era. The view of today’s economic establishment is that the present system works well, that gold standards are inherently unstable, and that advocates of gold’s return are eccentric cranks.

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Inflation and cryptocurrency

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