Data shows that Bitcoin inflation is 5 times below that recorded by the US dollar – DiarioBitcoin

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Data shows that Bitcoin inflation is 5 times below that recorded by the US dollar - DiarioBitcoin By Angel Di Matteo @shadowargel

The comparison highlights the stability in the conditions for the issuance of Bitcoin compared to what was seen with the US dollar, showing that the latter is mainly subject to the needs and policies of the responsible government, the main cause of the inflation of the US currency.


After the announcement by the US Department of Labor Regarding the increase in inflationary levels in February, the comparisons were immediate, highlighting in particular the fact that in the face of the fall in the US currency Bitcoin has managed to remain firm, and although there is great volatility in its prices, its issuance is maintained based on the originally established principles.

inflation of Bitcoin is five times less than the US dollar

The comparison in question is presented by the media finbold, which highlights that at the current date 90% of the Bitcoin originally scheduled to be issued, bringing its inflation rate down to 1.7%, five times below the current rate of the US dollar.

The remarks made by Finbold are based on various market data, including the graph presented by the co-founder of Glassnode, Rafael Schultze-Kraft, who on March 10 indicated through his official account Twitter that the inflation rate for the digital currency followed a “descending trajectory, preprogrammed and totally predictable”.

Compared to last January, the inflation of Bitcoin it was reduced by 0.1% for February of this year, remaining at 1.7% for that month. For its part, this same one indicated in the US dollar stands at 7.9% during the last month, being the highest rate in the last 40 years, that is, since 1981 before the oil peaks arrived at that time. , as analyst Holger Zschaepitz put it.

Bitcoin does not respond to particular desires

As is well known, the design of Bitcoin It is governed by strict programming and mathematical principles that guide both the maximum limit of assets that will be issued, the speed and rhythm at which they will be created, as well as the scheduled distribution among those who support and/or support the good performance of the network. .

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Among these principles are the following:

  • At the end of its broadcast history, the network will have created a total of 21 million bitcoin, so there will be neither one more nor one less in circulation and this limit will not change.
  • The creation of new BTC is intended for the mining community, among whom a certain amount of BTC for arranging their computing power (HASH) to solve highly complex mathematical operations to compile transaction blocks. The more participants mine, the more complex the calculations will be to find the solution to the corresponding block.
  • Each network block will be broadcast over a 10-minute span, currently resulting in about 6.25 BTC for the miner who manages to process it, this in addition to the rewards linked to the commissions paid for all the transactions compiled there.
  • The issuance of new BTC is also a scheduled process, and is cut in half on average every four years through a process called “halving”.
  • That said, it only remains to note that the latest new BTC it will occur in the year 2140, and once the process is closed, the miners will compete for the rewards associated with the commissions linked to the transactions.

This makes of Bitcoin a currency with deflationary properties, that is, whose value is programmed to increase organically over time based on the principles of the free market, since this system shortens supply as demand grows to the extent that there is a greater adoption.

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On the contrary, we have the US dollar, the main reserve currency among a large number of countries, which during the pandemic due to COVID-19 was the subject of certain measures by the US Federal Reserve (FED), which made an overprint to finance the economic debacle that was experienced during the first years of this situation. It is estimated that a fifth of all dollars currently in circulation were printed in the last two years, and this was due to the need to finance social support programs and economic aid packages.

Bitcoin and the crypto market

While the issue is one thing, the price of Bitcoin in the market obeys principles mainly governed by supply and demand, although being an asset that can be traded 24 hours a day through exchanges and commercial services, its price can fluctuate much more easily than other known securities.

At the time of editing Bitcoin It is trading at about USD $39,241 per unit, capitalizing on a drop of 6.68% in the last 24 hours. According to our section CryptoMarkets, its historical maximum between 2021 and 2022 was about USD $68,789, while its lowest value reached USD $28,893.

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Source: FinboldTwitter

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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