Last 8 Years USD Lost 99.98% Against Bitcoin: Is US Dollar Following Weimar’s Hyperinflation Path Against BTC?
The US Dollar could be performing in a similar way as Germany’s Papiermark during the hyperinflation period that the currency experienced between 1921 and 1923. The recognized crypto analyst PlanB has uploaded a chart to Twitter comparing the performance of Germany’s Mark and the US dollar against Bitcoin.
Is The US Dollar Following The Same Fate As Weimar’s Mark?
According to PlanB, Germans didn’t realize that their Mark was falling due to excessive printing. They believed that the currencies of other countries were going up, so they printed even more. PlanB wants to show the effect of the current central bank policy of quantitative easing and which is the effect that it can have over the economy.
— PlanB (@100trillionUSD) March 17, 2019
There have been other countries that have experienced hyperinflation in the last years. One of them is Venezuela, which has an annualized inflation rate of over 1 million percent. Individuals in the country do not have the means of overcoming this hard situation. Supermarkets are empty, there is no food and people is struggling to find medicines.
The same has happened in Zimbabwe. The country printed money but individuals did not trust their currency at all.
There are several individuals and experts that believe that Bitcoin (BTC) is going to play an important role in the future economy and financial landscape. Bitcoin has a limited supply and its price has been growing since it was created back in 2010. Although the digital asset has experienced a bear trend in the last 2018, the forecasts for the future seem to be very positive.
Bitcoin has a limited supply of 21 million BTC that will allow the digital asset to keep growing if there is an increase in the demand for it.
According to some analysts, Bitcoin will be able to keep growing only if it is able to properly scale. This is why the digital asset has already implemented Segregated Witness (SegWit) increasing the number of transactions that can be processed per block. At the same time, the Lightning Network (LN) is being developed and it will allow Bitcoin users to perform thousands of transactions per second without congesting Bitcoin’s network.