Re:Ask HN: Will banks inflate Bitcoin just like they inflate...
by sph on Thursday July 28, 2022 @11:18AM
(#32265498)
> The problem is as long as you can use any currency X to buy Bitcoin, simply printing X and using it to buy Bitcoin will inflate the price of Bitcoin as well.
That's a tautology.
If you print dollars, you'd inflate the BTC price because dollars are less valuable, so the BTC/USD exchange price will increase. In a vacuum, with no other variables, Bitcoin's value by itself has remained unchanged.
This is why in theory Bitcoin is seen as an inflation hedge (though not in practice for a ton of reasons). If dollars get inflated, Bitcoin rises compared to the dollar.
That's a tautology.
If you print dollars, you'd inflate the BTC price because dollars are less valuable, so the BTC/USD exchange price will increase. In a vacuum, with no other variables, Bitcoin's value by itself has remained unchanged.
This is why in theory Bitcoin is seen as an inflation hedge (though not in practice for a ton of reasons). If dollars get inflated, Bitcoin rises compared to the dollar.
The market is always relative to something else.