The American financial market is mainly fueled by debt. And the rising inflation problems are causing too much trouble. Even for an average American citizen. America is facing exponentially rising inflation rates. A recent study found out that out of every 100 people, 70 got affected by inflation.
With the emergence of cryptocurrencies and more people being increasingly aware of them. We can expect more room for Bitcoin to increase its value as the buying pressure gets a massive push due to the fear.

What is the reason behind the fear?

Experts say that the fear is predominantly political. Many workers lost their job and others are struggling with lesser work hours due to Covid. Because of this, their pays decreased, which was the reason for this chaos over time.
These people are the most vulnerable and sensitive to the rising inflation rates. Therefore, there’s an impact on the general cost of living. The main reason is their low earnings, which dramatically influenced inflation.

Who gets affected, who doesn’t?

Generation Z will be directly involved. It will not be exempt from investing money into Bitcoin in the coming years.
In a survey, Generation-Z expressed a very high level of fear over the coming economic crash. Big institutions and independent whales won’t be participating in the Bitcoin world.
When it comes to inflation’s natural effect, generation x is the most worried of all groups. It is pretty understandable as the ages commonly range between 35 and 54. They are getting older with not many options in their hands. Hence, the worry about a secure future.

Why Bitcoin?

The central banks worldwide printing more money over time leads to inflation. But Bitcoin only has a limited supply of 21 million coins. This minimal supply acts as a safeguard against inflation.
Bitcoin is the flagship cryptocurrency in the market right now. It will continue to be the same for many years to come.
Although the prices are volatile than the average stocks, the value of Bitcoin only goes up in the long term.
So seeing this safety of Bitcoin becomes an ideal choice for investment. Even for people who feel pressurized by the steadily rising inflation prices.

What are the possible solutions?

The government can control prices to try and prevent inflation. Stringent monetary policy can help the government. This will reduce the existing money supply to fight against rising inflation. What’s more? The government can also deploy specific country-backed securities and bonds. This will allow citizens to tackle the rising inflation.
In conclusion, whatever the government tries to amend, bitcoin remains the safest bet.
Sayan Mitra
Sayan Mitra

Sayan is a writer by choice or rather by instincts. He had started as a content writer for an infrastructure development website. Over the years, he has been involved in several versatile projects, ranging from blogging to creative writing, penning down web content to site reviews. Tourism, fashion, real estate, gambling, sports, politics, business proposals, presentation work, technical writing, generalized topics – Sayan has done it all, with his words.