Inflation has been one of the primary
factors that have crumbled economies over the past decades, with the recent
situation in Venezuela and Mozambique shedding light on its effects. Countries
suffering from hyperinflation have seen their citizens turn to cryptocurrencies
to hedge against inflation, and the Director of VanEck believes Bitcoin could
be the solution if the same thing happens in the US.

Bitcoin Could Solve Inflation Problems

The Director of VanEck, one of the
companies looking to launch a Bitcoin ETF, Gabor Gurbacs, is of the view that
when inflation comes to the United States, Bitcoin could be one of the
solutions to it. Through a tweet, the director says “I learned not ever to
underestimate the United States. The U.S. is where some of the most ingenious,
down to earth and hardworking people live, invent and build their futures. When
inflation becomes a major issue, the U.S. will find a way out. And it might be
related to Bitcoin.”

Read: Cashless Society Means More
Surveillance, Bitcoin Is Indispensable

In a tweet referring to the limited amount of BTC, the VanEck exec stated that
scarcity is the means and abundance is the end, implying that the scarce nature
of Bitcoin could lead to wealth and ultimately curb any inflation effects on an
economy.

Gurbacs has been impressed by the
resilience of Bitcoin and other cryptocurrencies despite the challenges they
face from regulators and financial bodies all over the world. He notes that “Bitcoin and many crypto projects continue to
live despite heavy regulatory, financial, corporate and media pressures. We
don’t have it easy, but nothing easy is worth having. The builders, innovators
and hustlers will be remembered. Stay hungry and “don’t settle.”

Crypto Is Suitable For Hedging Inflation

Gurbacs is not the only with this
view. The general feeling around the cryptocurrency space is that Bitcoin was
designed to counter, hence the reason why Satoshi created only 21 million
coins.

The fact that Bitcoin is not tied to
any national currency means that it cannot be affected when any fiat currency
becomes inflated. When a user purchases or receives crypto for a certain
amount, they can cash them in for their local fiat currency, and this would
effectively override devaluation of their currency.

The economic woes in Venezuela,
Zimbabwe, and Greece have all seen people use cryptocurrency as a store of
value so that they don’t lose their wealth due to inflation. According to some
cryptocurrency experts, Bitcoin could also be used to hedge against a cashless
society. In a post by Hasu, the rise of cashless society will most likely lead
to people becoming more vulnerable to surveillance, financial control, and
authoritarianism.

Hasu strongly believes that Bitcoin
could help stop all that since it has features that make it impossible for
government bodies to control the people’s finances and have authority over
them.

Also Read: Patience, Bitcoin Will Overcome
the Pushback from Banks and Governments

BitMex CEO Opinion

This point was also made by Arthur Hayes, the CEO of crypto platform BitMex. Hayes said that the decentralized nature of Bitcoin and other cryptocurrencies would protect people from cashless systems which are perfectly designed to collect user data and grant the government control over their finances.

While there have been calls amongst
some crypto enthusiasts for the increase in the total supply of Bitcoin, a
large section of the industry believes that the 21 million cap is perfect as it
ensures that Bitcoin would have a long-term value.

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