bitcoin (B T c) received more free publicity this week as inflation data showed prices rising faster than even experts had anticipated.
Latest The Consumer Price Index (CPI) report from the United States Bureau of Labor Statistics (BLS) on June 10 also showed that the average hourly earnings for American workers are the lowest in this century.
Inflation returns to 2008 levels
One of bitcoin’s best friends is inflation. Its inherently deflationary nature allows its users to save for the future without worrying that inflation is eroding the value of those savings.
Central banks have made a phenomenal start since COVID-19 started money printing programAnd its consequences are now becoming worryingly clear.
In May 2021, twelve months after the coronavirus began to take hold around the world outside China, the US CPI rose 0.6%.
This is 5% higher than the same month last year, and means US inflation is now at its highest level since the 2008 financial crisis.
“The May CPI report again shows sensitive categories dominated by price pressure for the second month in a row,” analysts at Bloomberg said in remarks accompanying the report.
Perhaps unsurprisingly, bitcoin supporters were quick to raise the alarm.
“The US has just hit a 13-year high inflation rate. This was unexpected by policymakers and economists,” Dan Held, development lead at the exchange Kraken, began in a series of tweets.
“For a man of average intelligence, it was completely intuitive, given the massive money printing (incentive) that had happened since COVID.”
Held notes that wages have failed to keep up with any change, meaning that American workers were earning less per hour on average than at any time in the 21st century when adj.
CPI hides true inflation rates
Other bitcoin figures have captured inflation in recent years, a prime example of how the fiat currency system deceives those it forces to participate.
Although the CPI still looks relatively low in percentage terms, many assets are not included in the gauge. Examples of these are products and services that provide assurance to a citizen for the future, such as real estate and college tuition.
Michael Sayer, CEO of MicroStrategy and author of “The Bitcoin Standard” has been Saffedian Ammos. especially outspoken about inequality.
“The CPI is a misleading measure of inflation,” Sailor argued in March.
“Volatility is a misleading measure of risk. The former distracts us from the problem, while the latter distracts us from the solution.”