Inflation is here to stay in the United States. Not so transitory, after all.

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Avatar for francis105d1
2 years ago

Inflation is here.

Have you gone shopping lately for daily essentials?

Have you noticed that food prices are going up?

In short, that is inflation, the increase of prices of your daily needs but your salary continues to be the same, many called it a tax. But the truth is inflation comes when a government doesn't govern itself well in a specific territory. Many reasons can be given for why this happens, one of them is the money printing by order of the government and the central banks.

With each country, the difference in how inflation starts may be different. Still, the result is the same: increases in the prices, partly because the government didn't manage its finance well example, Venezuela's case. They started to spend more than what they produced, so they began to print money to pay for their expenses, not to forget United States sanctions against the current government in Venezuela.

In the case of the United States, inflation is happening because the means of production have been stopped to curve the health crisis. Also, all the restrictions imposed on regular citizens and their businesses, in the free country, you can't run your own business as you see fit; you must live by the government blessing; otherwise, you starve to death by its mandates as well.

But the one thing you can make sure of is that the stimulus checks are just money printing checks, and all Americans will pay that bills with interest once payment comes due; the form will be not only higher taxes but also higher prices at the store and pump. And what does inflation has to do with crypto in general and, even better, Bitcoin Cash?

Well, one thing you can be assured not without risk is that Bitcoin BCH will always have a 21 million total supply. It doesn't matter what happens in the real world. The supply will not change, and no government or any other entity will have the power to change that. Compared to fiat currencies, Bitcoin Cash will continue to gain value against those. Even if miners somehow managed to get together and change the rules of 21 million total supply, users could fork and continue with the current feature. Miners will be left mining something that the people don't appreciate or evaluate, so since miners get rewarded in the asset itself, it will be in their best interest to keep that rule going.

Suppose you don't read the Bitcoin Core propaganda but instead inform yourself with independent news. In that case, you will realize that in countries in which inflation and hyperinflation is a thing of the past or that they are experiencing that situation at this moment, you will find out that in those territories, people are using altcoins like Litecoin, Dash, XRP and Bitcoin Cash because in those altcoins the fees are very minimal.

Once hyperinflation hits the United States, the same reaction will happen here; people will use altcoins instead of Bitcoin Core. Once the United States Dollar goes the way of the Zimbabwe dollar, the whole world will be in a big problem, not just USA. At that point, many things could happen. Still, one thing is almost guaranteed, people that can't afford BTC fees won't use that currency and will have to use alternatives, and if enough people can't afford it, it becomes useless to the regular user.

And that's the risk that Bitcoin Core has; once the rich are done accumulating Core, who will they sell to? The rich are buying Bitcoin Core today because in the future, they plan to use it as a hedge against inflation and because they are expecting to sell it to those who didn't buy before the crisis, but if their future customers can't afford the fees to who are they going to sell to? To themselves, maybe?

Bitcoin is supposed to be a decentralized peer-to-peer currency that can simultaneously bank the poor and the rich. Still, the current Bitcoin project now lives on Bitcoin Cash BCH; if you want a hedge against inflation where you will accumulate today and sell it tomorrow, you want Bitcoin BCH. If you are getting Bitcoin BCH today because you want to hedge against inflation tomorrow, Bitcoin BCH is what you want. You can be sure that you will have a hedge and a currency and store of value all of them simultaneously, and your future customers will be able to afford the transaction fees as well, so you will be safe by holding Bitcoin Cash.

Make no mistake, and you must try to understand the following if Bitcoin, which is Bitcoin BCH, were to work as advertised, then why would you need any other altcoins? You see, that's what people don't understand yet, and that's where the opportunity is; if Bitcoin BCH works and is the real Bitcoin, why would you need other altcoins. Altcoins are growing today because they are trying to close Bitcoin Core's gap. Still, Bitcoin Cash is Bitcoin that works, and that's why it is so hated because Bitcoin BCH makes Bitcoin Core useless and a lot of other altcoins. And people who are already invested in other altcoins don't want to lose their money, so they will fight this idea to the bitter end.

Please take this as an example; Vitalik, the creator of Ethereum, wanted to code what ETH does today but in Bitcoin, but the Core team didn't let him. Hence, he went ahead and created his coin, but make no mistake, what eth does today was supposed to happen on BTC, so let's go back to bch if Bitcoin Cash can have smart contracts and tokens and can scale on-chain because 32MB blocks and in 10 years up to 128MB, then why do you eth for? So that you understand better, Bitcoin Cash is Bitcoin, and Bitcoin Cash can do the same things that eth does today. BCH will continue to improve in what eth does in the future as well, then why do you needeth for? not only that eth was supposed to be coded into Bitcoin Core, but Core devs didn't let Vitalik work on BTC because of scalability issues than if BCH can scale on-chain. It is the real Bitcoin; why do you needeth for?

You don't need many altcoins once you let Bitcoin BCH work as advertised in the white paper. As such, BCH will always be hated because it puts those investors in the wrong place where they stand to lose everything they have gained but make no mistake, this little fact will come to the masses. They will understand this as well, and so those projects little by little may have a treat going their way in the form of Bitcoin Cash is the real Bitcoin, so I don't need to hold this altcoin. So you see, it is not about saying Bitcoin Cash is Bitcoin is about the fundamentals behind that. The people who already have those assets don't want to hear that because they don't want to lose money, so it is up to the new investors to figure that out on their own, and that's why Core is censoring you on Reddit because they don't want newcomers to find out about those things until is too late. They are already invested and have to force themselves to follow that same narrative not to lose their investment.

And what good is a store of value if you can't use it at the moment they need it the most? Bitcoin Core is an unproven store of value. No, it is not a store of value, just a speculation asset because, in times of hyperinflation, the regular people are forced to use altcoins instead if, in Venezuela and Argentina, people must use other altcoins to save on fees, that means that once inflation hits your country, you will have the same problem and if you were buying it as a hedge against inflation than your whole thesis is wrong, is not a hedge or store of value if people in other location with hyperinflation already can't use it. At best, Bitcoin Core is a speculative asset that will die out once the significant economy in the world suffers the fate of the money printing from the FED and all of the stimulus checks and bailouts.

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2 years ago

Comments

I did lots of research for my country , India and found out the inflation is too much here salaries are never increasing and the price of every essential thing for a family is increasing. Not a single government is able to stop this damm the common people have to look for themselves, no help from the experts or government on this matter. Infact see the height of stupidity an announcement has been made that 30% taxation will be applied on every profit you will make on crypto lmao I feel like slapping that head Making stupid decisions .

$ 0.05
2 years ago

Inflation and on top of taxation, the best way is to buy crypto but never sell it; that way, you avoid taxes and only use it peer to peer.

$ 0.00
2 years ago

I remember when I used to think that Bitcoin BTC was the best coin ever but what they have going on is mostly a facade. BCH is growing and still has so much potential for growth

$ 0.01
2 years ago

It can onboard the whole world with just one penny as fees

$ 0.00
2 years ago

Inflation is major challenge in my country (Nigeria), I always thought thing will get better but i have never seen our economy improve

$ 0.01
2 years ago

Inflation once it sets in is really hard to remove

$ 0.00
2 years ago

Bitcoin Core is an unproven store of value.

You are right and agree with your words. Sounds you have good knowledge of crypto.

$ 0.01
2 years ago

I have been writing exactly that for some time now, this is the first article that my message conveys that and I do think transaction fees will play a role in the future, and people won't be able to ignore the issue in the future once a situation like hyperinflation around the world is a reality or the dollar loses its status of world wide use currency

$ 0.01
2 years ago