While some anticipate that more people will naturally get into crypto due to inflation, the reality is far from some community members’ expectations. A discussion in the r/cryptocurrency subreddit highlighted this topic and explored why higher inflation is not pushing more people into the crypto space.
According to a Reddit user, events like the United States Federal Reserve printing more money and the government spending more and more funds have led them to get into crypto as one of its functions is to be a hedge against inflation. The Redditor posted that they expected more people to do the same in the subreddit. However, the community member is now puzzled as to why this is not the case.
In response to the Reddit thread, one community member pointed out that higher inflation means that the cost of goods is on the rise. Because of this, the Redditor believes that people have “less to invest,” suggesting that people would prioritize their basic needs rather than put their money into crypto. Another user agreed with this notion, saying that people would rather burn gas to keep them warm in the winter than burn their money on “sketchy shitcoins.”
Meanwhile, another user brought up that the U.S. dollar (USD) has performed very well throughout the year. According to the user, even Bitcoin (BTC) has lost value against the USD in the current year. In addition to this, a user believes that people not jumping into crypto has something to do with its volatility, lack of use cases and the space being plagued by a lot of scams, rug pulls and hacks.
Despite the negative notions, some still argued in favor of crypto. A community member highlighted that in terms of volatility, Bitcoin has been less volatile compared to some tech stocks this year. In terms of use cases, the user argued that there have been a lot of use cases within crypto, like easier cross-border transactions and smart contracts. Talking about scams, the community members said that there are scams everywhere, citing real estate, fake gold scams and pyramid schemes.
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On Oct. 13, politician Nigel Farage told Cointelegraph that one of Bitcoin’s appeals is its fixed supply and highlighted that it cannot be inflated away. According to Farage, Bitcoin will very soon become a trusted means of exchange in Europe as a very big change is set to happen in the next 2-3 years.