The record-high US inflation rate opens new possibilities for Bitcoin
Industry News
Digital currencies led by Bitcoin are primarily claimed to protect holders from inflation, as the value of crypto assets constantly moves up despite the market downs. The US inflation rate reached its highest mark within the last five years. Based on October, CPI (Consumer Price Index) has skyrocketed by 6.2% compared to the same period of 2020.
The monetary system keeps printing money having no concise measures to stop the growing inflation.
David Marcus, the former PayPal president, comments on the current economic situation in his Twitter account: “Inflation at 6.2% means that if we keep it steady for 10 years, your $100,000 will become $54,800 by then.” Furthermore, David highlights that digital currencies seem like the best solution to resist inflation.
Bitcoin reacted to the inflation news with a new all-time high. If we are looking at the long-term numbers, the BTC price has jumped from $16 276 to $69 000 within a year. The second-largest digital currency shows even higher growth – close to 1000%.
On top of the USA, other countries are suffering inflation growth as well. For instance, Turkey faces a CPI growth of 17.57%.
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