Inflation is usually caused by a general decrease in the purchasing power of money.Bitcoin has emerged as an argument against the increase in inflation rates with the increase in monetary supply. Bitcoin's maximum production amount of 21 million is produced less than the demand day by day. There are many factors that make mining difficult.
With the halving that takes place every 4 years, the mining rewards are reduced by half, making production more difficult day by day.In addition, the increase in electricity prices and the decrease in hash rate are among other issues that make mining difficult. This means that as the supply decreases in terms of value, the unit price increases.After each halving period, there is a retreat in the Bitcoin inflation rate. For these reasons, it has prepared the ground for its positioning as a means of protection.
Although the dollar, which has been affected by the increasing inflation in the last 10 years, negatively affects the value of bitcoin, its nominal value is increasing day by day due to the increase in the global recognition and acceptance of Bitcoin.Between bitcoin and inflation "Is Bitcoin a commodity or is it money?" Connects to the question.
