Will BTC mining increase due to fiat currency inflation?

257
Ultramining.com

12:58 Oct 03, 2022

257
Will BTC mining increase due to fiat currency inflation?

Although crypto is not considered a reliable investment in the world of traditional finance, it continues to be popular in 2022. The lack of a centralized supervisory authority, volatile prices of virtual coins - all this does not stop people from mining. On the contrary, fiat currencies are losing their popularity.

All this encourages serious investors to invest in bitcoin rather than in paper money or other financial assets. This, in turn, increases the demand for mining.

Situation on the currency market

The fall of fiat assets is reflected in the growth of BTC.

Russian ruble

During the fall of the currency, experts noted a sharp increase in the volume of BTC/RUB trading in the Russian Federation. After the events of February 24, 2022, local investors preferred to keep their savings in BTC. They also invested in Bitcoin.

British pound

At the end of last month of this year, the national currency of the United Kingdom suffered one of the most devastating collapses. At the same time, BTC/GBP trading volume rose by more than a thousand percent in just one day.

Japanese currency

The Asian nation's central bank tried to offset the effects of the crisis by investing billions of dollars in the inflationary yen. However, it wasn't enough. The result was a drop to 145 against the U.S. dollar. Then crypto-assets also came under the scrutiny of Japanese investors.

Result

Surges in cryptocurrency trading can be worrisome. That said, don't assume that everyone will rush to buy up BTC, affecting the complexity and efficiency of bitcoin mining. Investors around the world are probably using this cryptocurrency asset as a kind of "safe haven" for their savings.


Share to:
Related news