Thursday, December 16, 2021

The value of Bitcoin will continue to increase because the value of fiat currencies will continue to decline

Inflation is nothing new. On the one hand we have Bitcoin with limited supply and everything in between, you already know that. On the other hand we have fiat currencies, with potentially unlimited supply and you already know that too. Unless there is a catastrophe or an event that wipes Bitcoin out of the heads of all investors, the growth of its value against fiat is inevitable.

The purchasing power of major fiat currencies decreases over time and is part of their nature, nothing unexpected; this brings us to Bitcoin. Its rapid increase in value has generated significant gains for those who bought at the right time but the more its growth rate decreases the more the actual gain is reduced, for the simple fact that you can sell it for a greater amount of fiat which in the meantime has lost purchasing power.

In short: perhaps the point is not whether or when Bitcoin will hit the millions of dollars per coin but what those millions of dollars will be able to buy when that milestone is reached.


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