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UK Inflation Rises to 40-Year Highs…What Does This Mean for Bitcoin?

UK Inflation Rises to 40-Year Highs…What Does This Mean for Bitcoin?

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Answer UK Inflation Rises to 40-Year Highs…What Does This Mean for Bitcoin?

The term inflation has almost always been present in the headlines of economic news, which is one of the remnants of the Corona crisis in addition to the impact of global monetary policies that tried to fix the situation by printing more money.

Recently it was announced that the UK inflation rate exceeded 10% for the first time in the last 40 years.

Economists warn that the numbers could rise to 11% in the coming months, spurred by higher food and fuel prices.

What does that mean for bitcoin?

The past few years have been somewhat problematic for the UK and its economy.

At the beginning of 2020, the country left the European Union after 52% of the local population voted for Brexit.

Read:Learn: How Coinbase Became the World’s Largest Bitcoin Bank

It is the mother who has caused many short-term complications for the Kingdom, which mainly affected its trade performance compared to other G7 countries.

During the same year, the Corona pandemic also left its mark on the English economy.

The United Kingdom was among the countries that took the most drastic measures with the aim of limiting the impact of the health disaster.

The government distributed between $350 and $460 billion to motivate furloughed residents during that period.

Two and a half years later, the effects of mass printing of money and the other issues at hand are clearly visible.

According to a report by BBCInflation for September rose to 10.1%, a level not seen since 1981.

In addition to inflation issues, the UK is going through a political crisis as well.

Earlier this year, Prime Minister Boris Johnson resigned.

Last month, the Conservative Party elected Liz Truss as the country’s new prime minister.

However, a recent study estimated that nearly 80% of British adults disagree with her policies, while only 10% have a favorable view of her.

Read:European Parliament votes to ban anonymous crypto transactions…details here

Could the UK’s faltering economic situation have any impact on Bitcoin, though?

Inflation and Bitcoin:

Inflation and bitcoin are often brought up in the same sentence, as bitcoin was created specifically to combat inflation.

Over the past year, with inflation figures rising to levels not seen in decades, Bitcoin has failed to maintain its price.

Read:Japanese government announces date for review of crypto-company tax rules…Details here

And here is the pricing in another currency, for example the dollar, because in fact 1 bitcoin equals 1 bitcoin, and his algorithm has remained strong, secure, decentralized and immutable as it has always been.

The current market turmoil across the board is one of the first major stress tests for Bitcoin and how it performs under these circumstances.

Up to this point, rising inflation has not been productive for the dollar value of bitcoin, and it is probably safe to assume that barring any major economic shifts, bitcoin’s position is unlikely to change, at least for the time being.

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