Key facts:
More than 1.8 billion people live in countries with inflation ranging from 10% to 99%.
The US is close to joining this list, which already includes Latin America, Asia, Africa and Europe.
Inflation does not stop growing in different parts of the world, which has sparked the concern of the inhabitants. We are living records of price increases. Both in countries with historically fragile economies, as well as in powers that until recently were recognized for their stability and economic growth, such as the United States.
According to the latest data from TradingEconomics processed by specialist Sam Wouters, 23% of the world population suffers from double-digit year-on-year inflation. This occurs in 52 countries in Latin America, Europe, Africa and Asia, affecting more than 1.8 billion people, as seen in the following map.
There are eight Latin American countries on this list: Argentina (55.1%), Chile (10.5%), Paraguay (11.8%), Brazil (11.3%), Suriname (61.5 %), Haiti (23.9%), Jamaica (11%) and Cuba (23.3%). The only one that exceeds this mark in the region is Venezuela, which reaches three-digit inflation (284%).
This happens while 43% of the world population has between 5% and 10% inflation. Something that is particularly striking in those countries that had not recorded such figures in more than 30 years, such as the United States and Spain.
Precisely, these two countries mentioned are getting closer to having double-digit inflation rates. They currently have 8.5% and 9.8% each, respectively, figures similar to those experienced by other nations that were recognized for having strong economies, as is the case of the United Kingdom, which reaches 7%.
Bitcoin is seen as an asset against inflation by some specialists
Although these figures are setting historical records, some people believe that the inflation rate is even higher than the official data. so what manifestedFor example, cryptocurrency content creator TechConCatalina, who stated that bitcoin (BTC) is the lifeline in this context.
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One of the causes that generates inflation is the increase in ticket printing. This is the reason why different specialists in economics have highlighted that bitcoin could be a solution to this problem that the monetary system is going through. This is because the issuance of the cryptocurrency is limited by code and no one can alter it without going against its protocol, as well as the consensus of the network.
Sam Wouters, who is a specialist in bitcoin education, said of this: “For me, bitcoin dominance is not about high market capitalization compared to other currencies. That’s when it discourages countries from printing money.”
Recently, Kristalina Georgieva, the head of the IMF (International Monetary Fund), said that there was “too much money in circulation”. A situation that she warns that they did not foresee would generate economic problems, which is why she believes that there will be more inflation soon.
Specialist David Battaglia express today: «A process of high inflation is nothing more than the cover-up of a government default. Therefore, since the whole world has entered a phase of high inflation, we can state categorically that the world economy is bankrupt. To his opinion, he added:
Historical precedents teach us that governments pay their debts with more money issues. In this scenario, the United States can pay its bills with inflation, while the rest of the world fails to pay its external debt in dollars. In this situation the financial and economic results are uncertain. But with the proper understanding of the situation we can prepare as well as possible for the end game, which in my opinion is nothing more than the paradigm shift of the established economic order.
David Battaglia, CEO of BlocTrends.
Battaglia considered that, given this, the most important thing is to survive the transition from one model to another. “To do this, we must have assets that do not depend on an issuer, but rather those that are difficult to produce and highly desirable for their properties,” such as bitcoin, he noted. Something that coincides with the report by Zoltan Posnar, an analyst at Credit Suisse, who believes that we are in the midst of a paradigm shift in the monetary system.
Bitcoin does not help in the short term against inflation, but it would in time
This situation occurs while bitcoin suffers a sharp price drop that has brought it closer to USD 30,000 with the possibility of lowering more, according to predictions, which worries investors. However, the biggest enthusiasts remain convinced about the long-term cryptocurrency uptrend as a safe-haven asset against inflation.
This is shown by the specialist in the topic cryptobcncat, who said that, despite the falls, bitcoin is the “best monetary solution for the long term, both for countries and for their citizens.”
This is also believed by the trader tumonedadigital, who express via Twitter: “Always keep in mind that crashes are temporary, (while) inflation is forever. I tell you as a Venezuelan that I see my country with hyperinflation that has no control. Hold (save in) bitcoin.”
This idea coincides with that of other specialists reported in CriptoNoticias. However, there are those who believe that the inflationary environment is not helping BTC, as explained by the investor Juriel in Ficoneta. “In times of inflation, investors seek refuge in real assets and bitcoin is the opposite,” express in disapproval of cryptocurrency.
On this, enthusiasts argue that the cryptocurrency is still worth much more than it was a few years ago. This metric allows you to see that bitcoin it has sheltered and increased its value over time against inflation. Although no past event is a guarantee that it will occur in the future, which is why it is convenient to act carefully, since BTC works as a risk investment due to its price volatility.