HomeNewsNewsHow Bitcoin Causes Deflation in The Dollar

How Bitcoin Causes Deflation in The Dollar


Bitcoin and Crypto decrease the velocity of money

My thesis and opinion in this article will not debate a price point at which to buy Bitcoin (BTC-USD) or other cryptos but analyze why the currencies are assisting the fight against inflation in our US dollar economy. I am personally not a crypto investor, but understand some of its virtues. Bitcoin assists in keeping inflation down. Cryptocurrency is an asset that is not used for the purchase of goods and services in large part and it absorbs around $1 trillion in US dollar value of world currency that may otherwise be used to purchase items or commodities that directly affect the consumer price index. This helps to control the velocity of money.

Furthermore, it is in some ways just a wiring method similar to Zelle or Venmo, but its borderless and allows investors from other countries to evade strict currency controls. Even though the means of production is no longer a…

Read more…