As a result of various factors outside of the BTC operating market, such as wars in Europe, threats of war in Asia, and energy crises around the world, we are in a moment of downtrend for both traditional and non-traditional economic markets.
One of the most important economic consequences is high inflation in different regions of the world, including the USA, India and Asia.
Inflation is usually characterized by a direct loss of consumer economic capacity, with increases in the price of goods and services directly affecting consumer income.
The bitcoin industry has proven to be one of the fastest growing industries from the beginning of the pandemic until today.
With this in mind, more and more people are choosing to invest in Bitcoin by opening an account on an exchange or in a virtual wallet.
Bitcoin suggests possible solutions to the high rates of inflation that various economies are currently experiencing.
Currently, BTC has a market cap of $380,507,752,015, it is estimated that around 4.2 percent of the population owns Bitcoin, with the total number of BTC holders approaching 320 million worldwide.
Bitcoin vs fiat money
Fiat money tends to depreciate with issuance, in other words the monetary base increases indefinitely with issuance, higher issuance generates higher inflation.
As a result of the unlimited increase in the monetary base, the value of money in circulation will decrease.
Contrary to the monetary issuance scenario, BTC has a deflationary issuance regime as the maximum circulating supply of BTC will reach the figure of 21 million.
The money base of BTC does not grow indefinitely like money, after the emission reaches this maximum it will stop increasing the money base.
What do market experts think?
Jeronimo Ferrer, Business Development at Paxful, says: “Bitcoin is changing the reality of people around the world. Thanks to its exceptional and special qualities, BTC is a special asset that differs from the rest of the virtual assets, it was the first and without a doubt will change and challenge the traditional real economies for much longer. ”
Marcos Bravo Catalan, Partner of Beps Global Consultores says: “The traditional markets have shown their failure, after various economic crises we can say that our current economic markets are weak, Bitcoin is changing the traditional economic markets, we must recognize that this is the case inevitable”