Bitcoin Market Cap Growth vs M2 Money Supply Growth
199 sats \ 4 comments \ @kr 8 Aug 2022 bitcoin
This chart highlights the tight relationship between BTC price and M2 money supply growth.
Makes a pretty good case for Bitcoin as a monetary inflation hedge…
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0 sats \ 2 replies \ @jp 9 Aug 2022
Money supply is not indicative of inflation
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0 sats \ 1 reply \ @02174b3c39_lntxbot 11 Aug 2022
The money supply of a country is a major contributor to whether inflation occurs. As a government evaluates economic conditions, price stability goals, and public unemployment, it enacts specific monetary and fiscal policies to promote the long-term well-being of its citizens. These monetary and fiscal policies may change the money supply, and changes to the money supply may cause inflation.
https://www.investopedia.com/ask/answers/042015/how-does-money-supply-affect-inflation.asp
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0 sats \ 0 replies \ @jp 11 Aug 2022
Money supply is a factor, but you also have to take into account money velocity.
You can print a trillion dollars in a single day, but it needs to be transacted in order for the inflation to start spreading across asset classes (see: Milton Friedman)
Not saying you are wrong, but money supply alone isn't necessarily indicative of inflation
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0 sats \ 0 replies \ @HardRich 8 Aug 2022
Noice! Start warming up those printers.
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