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applegrove

(118,006 posts)
Wed Feb 2, 2022, 07:37 PM Feb 2022

Just a though. Maybe the growth of cryptocurrencies are why

inflation is so high. If people around the world are investing in cryptocurrencies instead of US dollar investment, then maybe that causes inflation in the US. Same with the euro, rubles, etc... Maybe there is too much government fiat currency around the world. Would explain why US inflation is higher (more people around the world invested in us currency assets than any other government fiat currency). Just a stab. I stopped reading about economics years ago.

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unblock

(51,973 posts)
1. Crypto may be big news, but it's too small a portion of the money supply to affect inflation
Wed Feb 2, 2022, 07:57 PM
Feb 2022

Never mind that it's hard to see how it causes inflation.

Our inflation is due to our economy growing at a record pace and temporary shortages due to Covid.

applegrove

(118,006 posts)
2. Oh. I'm guessing people investing in crypto around the world
Wed Feb 2, 2022, 08:04 PM
Feb 2022

are not investing in US assets or in US dollars as it is the alternative to crypto. That makes the supply of US currency around the world an oversupply. Too many dollars floating around is like printing money. US has always had an advantage to be a go to currency for people who are middle class or rich around the world along with europe. They put their savings in US or Euro dollars instead of buying gold like they used to. The US money supply uses this to get away with a bigger money supply than other countries per capita. It is the world currency. What happens when there is an oversupply? Inflation. IMHO

unblock

(51,973 posts)
3. Our exports are at record highs
Wed Feb 2, 2022, 08:29 PM
Feb 2022

So whatever effect may be coming from this or anything else is outweighed by other factors.

keithbvadu2

(36,360 posts)
5. Most people probably quit reading about economics just after the semester final.
Wed Feb 2, 2022, 08:47 PM
Feb 2022

Most people probably quit reading about economics just after the semester final.

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