Bitcoin (Bitcoin) Get more free publicity this week, because inflation data shows that prices are rising even faster than experts expected.
This Newest The Consumer Price Index (CPI) report released by the US Bureau of Labor Statistics (BLS) on June 10 also shows that the average hourly income of American workers is at the lowest level of this century.
Inflation rate returned to 2008 levels
One of Bitcoin’s best friends is inflation. Its inherent deflationary nature allows users to save for the future without worrying that inflation is eliminating the value of these savings.
Since the beginning of Covid-19, the Central Bank has launched an unprecedented Money Printing Procedure, And the consequences are now worrying.
In May 2021, twelve months after the coronavirus began to spread worldwide outside of China, the U.S. CPI rose by 0.6%.
This is 5% higher than the same month last year, which means that the US inflation rate is currently at the highest level since the 2008 financial crisis.
“The May CPI report shows that sensitive categories that have been reopened have dominated price pressure for the second consecutive month,” Bloomberg analysts said in comments accompanying the report.
Perhaps unsurprisingly, supporters of Bitcoin quickly sounded the alarm.
“The U.S. has just reached its 13-year high inflation rate. This is beyond the expectations of policy makers and economists,” said Dan Held, head of growth at Kraken Exchange. Series of tweets.
“For a person with average IQ, considering the large amount of money printing (stimulus) that has occurred since COVID, this is completely intuitive.”
Herder pointed out that wages have not kept up with any changes, which means that the average hourly income of American workers is lower than at any time in the 21st century.
“Wages can’t keep up with inflation, so workers have become poorer. TL;DR wages are more’sticky’ than prices, and prices are easier to adjust,” he concluded.
CPI hides the true inflation rate
In recent years, other Bitcoin data cited inflation as a typical example of how the fiat currency system deceives its compulsory participation.
Although the CPI percentage still looks relatively low, the indicator does not include too many assets. For example, to provide citizens with products and services that are guaranteed in the future, such as real estate and university tuition.
related: Bitcoin is “a masterpiece of currency engineering” Michael Seller told Austin Davis
MicroStrategy CEO Michael Saylor and “Bitcoin Standard” author Saifedean Ammous Especially the sound About the gap.
“CPI is a misleading measure of inflation,” Thaler said in March.
“Volatility is a misleading measure of risk. The former distracts us from problems, while the latter distracts us from solutions.”