The community debates why inflation isn’t pushing more people into crypto

While some expect that more people will naturally get into crypto due to inflation, the reality is far from the expectations of some community members. A discussion on the ir/cryptocurrency subreddit highlighted this topic and explored why higher inflation isn’t pushing more people into the crypto space.

According to a Reddit user, events such as the US Federal Reserve printing more money and the government spending more and more funds have led them to move into crypto as one of its functions is to be a hedge against inflation. The Redditor posted that they expected more people to do the same in the subreddit. But the community member is now puzzled as to why this is not the case.

In response to the Reddit thread, a community member pointed out that higher inflation means the cost of goods is rising. Because of this, the Redditor believes that people have “less to invest”, suggesting that people would prioritize their basic needs instead of putting their money into crypto. Another user agreed with this sentiment, saying that people would rather burn gas to keep them warm in the winter than burn their money on “sketchy shitcoins.”

Meanwhile, another user noted that the US dollar (USD) has performed very well throughout the year. According to the user, even Bitcoin (BTC) has lost value against the USD this year. In addition to this, one user believes that people not jumping into crypto has something to do with its volatility, lack of use cases and the space being plagued by a lot of scams, scams and hacks.

Despite the negative notions, some still argued for crypto. A community member highlighted that in terms of volatility, Bitcoin has been less volatile compared to some tech stocks this year. In terms of use cases, the user claimed that there have been many use cases in crypto, such as easier cross-border transactions and smart contracts. When we talked about scams, community members said there are scams everywhere, citing real estate, fake gold scams and pyramid schemes.

Related: Bitcoin traders were braced for a hot CPI report, but the BTC bears remain in control

On October 13, politician Nigel Farage told Cointelegraph that one of Bitcoin’s appeals is its fixed supply and highlighted that it cannot be inflated. According to Farage, Bitcoin will very soon become a reliable medium of exchange in Europe, as a very big change is set to happen in the next 2-3 years.