Prices in the UK continue to rise, reaching another 40-year high of 10.1%. According to figures from the UK Office for National Statistics, the Consumer Price Index (CPI) rose 10.1% in the 12 months to September 2022, up from 9.9% in August. The 10.1% figure reflects the recent high in July.
According to ONS data, “The increase in food prices represented the largest upward contribution to the variation in the annual inflation rates of both the IPCH and the CPI between August and September 2022.” The BBC reported that the war in Ukraine caused cereal prices to rise, also sharing that dairy products have risen by more than 30% in cost in a year.
But what do the relentless price rises mean for the UK Bitcoin (BTC) community and the crypto community in general? In recent months, sterling trading volumes have soared on exchanges, with the pound almost reaching parity with the dollar before the Bank of England went back to printing money.
jordan walker, CEO of the British organization Bitcoin Collective, stated to Cointelegraph:
“Given current BoE policies [Banco de Inglaterra] and from our government, double-digit inflation is pretty obvious. I think it’s a wake up call for a lot of people in the UK to start learning why this is happening with our money.”
Walker explained that holding the UK Bitcoin Conference should serve to teach people “the ‘why’ and offer a solution that we believe is Bitcoin.”
James Dewar, founding partner of UK-based Bridge2Bitcoin, told Cointelegraph: “Inflation has two components. One is the mismatch between supply and demand caused by disruptions like Covid, responses to Covid and war. We usually only hear about these, as politicians argue that these are events ‘out there’. ‘ out of our control.” Dewar continued, shedding light on the ins and outs of inflation:
“What you don’t hear so much about is that the other component of inflation is money and that since 2008 governments have encouraged central banks to both directly buy their debt (print money) and indirectly encourage them to banks increase lending (money printing)”.
His colleague Simon, from a volunteer organization trying to help local UK businesses reduce payment processing costs by accepting Bitcoin, told Cointelegraph: “Everyone on this planet, unfortunately, was born during a period of government controlled money and this traditional system is now in its death throes.”
“Mass money printing and Covid lockdowns have hastened its demise. Fortunately, Bitcoin emerged as a solution just when humanity needed it. Bitcoin is money for the people, by the people, and cannot be controlled by the state.”
Bridge2Bitcoin recently took to the streets of the UK to driving merchant adoption of Bitcoin, with mixed results. In short, the adoption of Bitcoin is growing in the UK, but it is a slow and difficult road.
Lastly, British influencer and cryptocurrency enthusiast, Laiyah Heilpern, a strong advocate for Bitcoin against CBDCs, took to her Twitter account to express her excitement at the surge:
Breaking: Inflation in the UK is back up to 10.1% – a 40 year high!
— Layah Heilpern (@LayahHeilpern) October 19, 2022
Paul Dales, chief economist at Capital Economics, told the Financial Times that the UK will have to get used to rising prices. Dales explained that the inflation rate will remain in double digits well into next year.
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