Whenever the topic arises about human complexities and the economy, we can never be sure about anything. Do you think we can manage the ever-increasing and complex economy on our own? Forward expectations, tempering, and the changes in the rates of different commodities for the people living their daily lives through the United States Federal reserve trying to drive the economy is very complicated. This leads to a lot of mistakes that cannot be corrected quickly.
The truth about the economy is that no one is ever certain about anything here. You can make a guess about the future, but you cannot be very sure about anything that will happen in the future, and therefore, we have nothing like power in our hands. Talking about the United States of America, money creation has increased significantly. There is a vast diversity in the amount of money created by the Federal Reserve in the United States of America. In 2000, there was only a 5% annual money increase, but it has increased to a significant amount of 18% in 2020. Well, it is none other than the ever-increasing inflation, which has been going on into a spiral since the 1980s.
The prices of different commodities have been increasing, and the total inflation increase in the United States of America is 19.3% just in 12 months ending November 30, 2021. The prices of automobiles like cars increased by 13.2% in 2021. Also, the inventory levels with the companies providing such automobiles are the lowest. If you consider the commodities like pork, chicken, and beef, their prices have also increased by 19%, 15%, and 26%, respectively, just in 2021. You can check out this App for more details. So, no matter what kind of commodity you are looking at or what type of consumer you are, you will get things at a higher price than in 2015.
However, is there is a better way of precision and confidently predicting the future possibilities of maintaining a money supply in the country? Can you change things? What if the business organizations and individual peoples can make better projections for the future to make better plans and signal the economy towards stable prices compared to today’s economy? It is something where bitcoin can be put into the picture.
Benefits of fixed supply!
Bitcoin can separately be considered the king of the cryptocurrency market in the whole crypto ecosystem. Out of the total value of bitcoins, about 90% have already been added to the circulation. It is expected that 95% of the total value of bitcoins will be mined by April 2026. According to the experts, 21 million bitcoins will be added to circulation by 2140. However, this data shows that everything that gladdens the price fluctuations in the bitcoins is based on maths and algorithms. As long as the maths and codes are the core of the monetary system, it is challenging to hinder or hamper their fluctuations. When people are in the power of fluctuating the prices of commodities, they crash. However, people are in a better position of confidence for the plans and long-term implications in bitcoin because they are driven through maths and codes. On the contrary, bitcoins are not influenced by other factors like political parties and agendas. The rule is simple, and it is executed every day in the same way.
According to the experts, the current inflation in the bitcoin network is about 1.77% only. Also, note that the inflation in bitcoin is decreasing. A person who wants to invest money in bitcoin knows that they will store wealth for the future, and that is also with certainty. The inflation of a bitcoin will decrease in the future, and therefore, no one is in the power of devaluing it. Anyone cannot wake up in the morning, create a bitcoin, and add it to circulation.
It will devalue the amount of bitcoin, but it is impossible. It needs learning and highly advanced computer systems. The reason people are capable of trusting the bitcoin network is the incentive structure at which the cryptocurrency miners are working. They work every day to add bitcoin circulations, and they get a reward of 6.25 BTC at this point. The fixed rule at which the bitcoin Blockchain system operates can upgrade, but it is next to impossible to adjust its foundational rules.