Twitter and Square CEO Jack Dorsey tweeted about the coming of hyperinflation in the U.S. and the rest of the world. Hyperinflation is when overall price increases happen faster, above 50 percent per month. Dorsey’s tweet comes as consumer’s price inflation is at its highest level in 30 years. He says, “Hyperinflation is going to change everything.” and “It’s happening.”
Many of his 5.8 million followers quickly responded to Dorsey for more information, and in response to one person, he said, “It will happen in the U.S. soon.”
Recently, the U.S. economy has been badly impacted by a supply chain crisis, which has seen consumers spending more money and stocking up on a great number of products. But the businesses are struggling to meet the demand. A backlog of shipping at ports across the U.S. has resulted in the supply chain struggling to keep its head above the water.
Specifically, the Port of Los Angeles, where more than half of shipping containers arrive in the U.S., has seen significant ship traffic jams. This is because trucks are not arriving quickly enough to offload the massive number of shipping containers arriving.
The Consumer Price Index, a measure of U.S. inflation, rose 0.4 percent last month, the Bureau of Labor statistics reposted.
Some people rejoiced over Dorsey’s warning, tweeting, “Thank God for bitcoin,” noting that BTC will inevitably become the world’s reserve currency.
Can Bitcoin be the key to Hyperinflation?
The fundamental of Bitcoin is that it can only be mined till a certain fixed amount shields the leading currency from inflation of any kind. As a result, Bitcoin’s rate of mining new bitcoins is steady, enforced by computer code, and decreases by 50% every 4 years. This makes it appear deflationary compared to the currencies of central banks like the USD.
Many at this place start to think, why not gold? As it tends to be less volatile. After all, it has been the preferred store of value on Earth for a few thousand years, and over $11 trillion is currently stored in gold.
However, in a country with hyperinflation, one is faced with the challenges of carrying around the gold. Bitcoin and other cryptocurrencies can be held in a “wallet” that is the size of a flash drive or even a digital one on your computer or smartphone.
To add this ever further, Bitcoin is borderless. You can send or receive Bitcoin with a wallet. No government or anyone else can block the transaction.
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