Over 1.8 billion people live in countries whose levels of inflation range between 10% and 99%. The US is about to join the list that includes Central and South America, Asia, Africa, and Europe.
Inflation does not seem to stop growing throughout the world, which causes concern among people. Prices are experiencing record increases in countries with historically fragile economies and those known for having stability and economic growth.
Specialist Sam Wouters from TradingEconomics determined that 23% of the world’s population suffers from double-digit year-on-year inflation. That affects over 1.8 billion people in 52 countries in Central and South America, Europe, Africa, and Asia.
The Central and South American countries on that list are Argentina (55.1%), Chile (10,5%), Paraguay (11.8%), Brazil (11.3%), Suriname (61.5%), Haiti (23.9%), Jamaica (11%), and Cuba (23.3%). Venezuela is the only nation surpassing that mark in the region, with a three-digit inflation rate (284%).
That is happening while 43% of the world suffers from inflation of between 5% and 10%. That situation draws attention in countries like the US and Spain, which have not reported those figures in over 30 years.
The inflation rates in those two countries are increasingly close to double digits. They currently have inflation rates between 8.5% and 9.8%, similarly to other nations known for their strong economies.
Some Specialists Consider Bitcoin a Hedge against Inflation
The above figures represent all-time records, but some experts believe inflation is even higher than the official data indicates. Given that context, cryptocurrency content creator TechConCatalina stated that Bitcoin (BTC) emerges as a store of value.
The increase in banknote printing has contributed to inflation, leading various economic specialists to recommend Bitcoin. The cryptocurrency has limited issuance, which nobody can change without breaking the protocol and consensus of the network.
Cryptocurrency education specialist Sam Wouters said that the dominance of Bitcoin is not about its high market capitalization. He believes that it occurs when it discourages central banks from printing money.
Kristalina Georgieva, the head of the International Monetary Fund (IMF), commented that too much money was in circulation. She noted that they did not foresee that this situation would bring economic problems, and she believes there will be further inflation.
Bitcoin specialist David Battaglia stated that high inflation is nothing but the cover-up of a government default. He considers that the economy went bankrupt when the whole world entered a phase of high inflation.
He added that historical precedent teaches that governments pay off their debts by printing more money. The US can pay its bills with inflation while the other countries fail to pay their external debt.
Battaglia recommends surviving the transition from one model to another by having assets not dependent on an issuer. For that reason, he believes that people should turn to those hard to produce and highly desirable, like Bitcoin.
The above situation happens while the price of Bitcoin is suffering a sharp drop that has brought it to around USD 30,000. Some predictions indicate that it could go even lower, which raises concern among investors. However, enthusiasts remain convinced that the cryptocurrency will remain bullish in the long term.
By Alexander Salazar