How Bitcoin Causes Deflation In The Dollar

SummaryDebates about whether crypto will be banned or not should also consider inflation.Bitcoin and crypto assets sideline dollars that would otherwise be used to purchase items or commodities related to the inflation index.The risk of serious crypto regulation will probably only begin to arise when the currencies become more transactable versus stores of value.Bitcoin and Crypto decrease the velocity of moneyMy 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 zero-sum game, the virtuous cycle of sharing, in the end, has the producer country's citizens clamoring to send their riches back home to where they came ...