Twitter and Square CEO Jack Dorsey warns us about hyperinflation in the US and countries all across the world. He is a pro-Bitcoin follower and clearly believes that hyperinflation will be the time when BTC shines. Jack even said on Twitter that it’s already happening and another Twitter user Tayo Oviosu replied that in Nigeria the inflation is at 16%. To this Jack said that “It will happen in the US soon, and so the world”.
It will happen in the US soon, and so the world.
— jack (@jack) October 23, 2021
Hyperinflation in the US
COVID has shown us the real meaning of inflation. Governments are printing money like crazy and this is making the value of their country’s currency go down. In the US, the prices of common goods are spiking and inflation is rising very fast. And not just US, this is happening on a global scale. The popular Twitter handle Bitcoin Archive tweeted that the price of a flat white coffee is up 13.8% since early 2020 from 2.90 Euros to 3.30 Euros.
The cost of a flat white coffee is up 13.8% since early 2020.
2020: £2.90
2021: £3.30
🤔— Bitcoin Archive (@BTC_Archive) October 24, 2021
Maybe it doesn’t seem like a big deal but we humans often think in absolute numbers rather than percentages where the problem lies. It is seen that consumer inflation is at a 30-year high and their Federal Reserve Chairman also noted that it could last longer than expected. People also brought BTC to the topic saying that it will inevitably become the world’s reserve currency.
Many disagreed too
While there were many likes and retweets on Jack’s hyperinflation tweet, it is not something that everyone agrees with. Patric Horna, a program manager for Monetary Policy says that “In the United States, hyperinflation is not happening”, while Lawrence White, a professor of economics at the same university as Patric says that, “What’s happening is higher inflation, not hyperinflation (except in Venezuela).” And this does make a lot of sense, as hyperinflation is a very extreme scenario. So, if that happens things will become pretty bad in the US.
Steve Hanke another BTC skeptic says that at present no country is facing hyperinflation. And in total there, have only been 62 certified hyperinflations in history.
As Jack Dorsey warns us about hyperinflation, do you agree with him or the skeptics? And what is your reasoning behind the same? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.
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