Hyperinflation should never approach our shores, in my opinion. It’s quite unlikely that we’ll be able to avert that outcome. To put it another way, we have a very good likelihood of seeing hyperinflation; the only question is when it will happen. When is it going to happen? Many people hope it’ll be a long time before it happens. Some believe it has already arrived and has been for a long time.
THE UNITED STATES DOLLAR IS INFLATING DRASTICALLY AGAINST REAL ESTATE.
Some say that real estate is already experiencing hyperinflation. Many Americans (and others across the world) are frantically overpaying for real estate, driving property prices in certain locations to virtually double in a year. I don’t mean to sound pessimistic, but your home’s worth did not quadruple in a year. When compared to a hard asset like real estate, your money is rapidly depreciating. Are there any additional indicators?IS BITCOIN A HEDGE AGAINST INFLATION?
Many individuals argue that bitcoin is not an inflation hedge. They point to last year’s record levels of inflation, despite the fact that the bitcoin price has stayed stable or declined since November. How is that possible?! Central bankers and persons who operate with a high time preference are the only ones who try to measure inflation month by month or year by year. Is it you, sir? If that’s the case, zoom out!Let’s look at how the US dollar and bitcoin have fared since they hit parity. The majority of people, including Bitcoiners, are unaware of when this occurred. Do you think so? A short search reveals that one bitcoin was worth one dollar on February 9, 2011. For the past 11 years, we now have a yardstick for inflation. Inflation is measured by decade, which strikes me as a low time preference way of thinking. So, what do we take out from this?
BITCOIN HAS DRASTICALLY INFLATED AGAINST THE DOLLAR.
You’ll note that bitcoin is now 29,000 times more valuable than the US dollar if you zoom out as I recommend. In that light, I believe it’s safe to conclude that bitcoin is telling us a different tale about inflation. It’s indicating that the US dollar is rapidly depreciating against the most difficult form of money ever devised or discovered. Anyone who argues differently has no understanding of money, banks, or our financial system. Oh, wait, that pretty much sums up our entire group.I find no solace in pointing this out, but I do roll my eyes at the idiots in government, the press, Wall Street, Silicon Valley, and, yes, even die-hard Bitcoiners who see inflation through the incorrect lens. Your framing is plausible, if wrong, if your unit of account is the US dollar and you regard bitcoin as an investment. Maybe I’m delusional, but I believe the experiment of creating a decentralized form of money that governments, corporations, and billionaires can’t devalue has been going well since 2009, and I’m confident that more people will see the blinding flash of the obvious this year and for many years to come.
Check your financial blind spot, Bitcoiners who feel they operate with minimal time preference and wonder why bitcoin hasn’t moved in lockstep with stated inflation numbers: You’re using the incorrect accounting unit. You are afflicted by fiat illness. The US dollar has been quickly inflating against bitcoin for 11 years if your unit of account is bitcoin. No, it hasn’t been a pleasant experience.
There’s no need to panic, although the US dollar has been rapidly depreciating against bitcoin for some time. This reality is, admittedly, a difficult pill to accept. You might want to stock up just in case the dollar continues to rise.
