In recent months, the national currencies of several countries have been collapsing. This loss of value leads to the systematic increase of prices of products on the market. October 2022 was no exception. In Europe, the inflation figures are particularly worrying. Bitcoin could be a credible alternative.
Inflation up in Europe in October
According to data provided by Eurostat, a statistical office of the European Union, inflation continues to rise on the old continent. While it was overall at 9.9% in September 2021 in Europe, inflation reached 10.7% last month.
Some countries even have an inflation rate well above the average. These are Estonia (22.4%), Lithuania (22%), Latvia (21.8%), the Netherlands (16.8%), Slovakia (14.8%), Belgium (13.1%), Italy (12.8%), Germany (11.6%) and Austria (11.5%).
Although below the European average, other EU countries are also failing to contain inflation. Portugal (10.6%), Slovenia (10.3%), Greece (9.8%), Ireland (9.6%), Luxembourg (8.8%), Cyprus (8.6%), Finland (8.3%), Malta (7.5%), Spain (7.3%) and France (7.1%) are also facing high inflation rates.
A very bad place for France, but that doesn’t prevent some politicians from congratulating themselves.
Olivia Gregoire, Minister Delegate to the Minister of Economy, Finance, and Industrial and Digital Sovereignty, in charge of Small and Medium-sized Enterprises, Trade, Craft Industry and Tourism noted that France is the country in the Eurozone with the lowest inflation. She attributes this “success” to the government of Emmanuel Macron.
France is the country in the Eurozone with the lowest inflation and it is thanks to the measures taken by the Government. We will continue for the french people.Olivia Gregoire
Prices soar in October
One of the perceptible consequences of inflation is the increase in products. In the European market, almost all products are affected by the price increase. However, some sectors are more affected than others. This is particularly the case for the energy sector, where prices have risen by 41.9% since the beginning of the year, food, alcohol and tobacco (13.1%), industrial goods excluding energy (6.0%) and services (4.4%).
As long as money is pumped into the financial markets to support the economy devastated by the COVID-19 pandemic, inflation will continue to rise.
Unfortunately, it is the citizens who are paying the price while the leaders who are responsible for it are profiting from the crisis.
Can Bitcoin be the solution?
Although volatile, Bitcoin can be a solution to inflation around the world. Certainly, Bitcoin, as much as national currencies, is affected by the loss of value… This asset was valued at $68,000 in November 2021. Today, its value hovers around $20,000.
Nevertheless, throughout its existence, Bitcoin has shown that it can be a reliable long-term store of value. One reason for this is its deflationary nature. It is the complete opposite of national currencies.
As we pointed out a few weeks ago, Bitcoin could be the last bastion against runaway inflation. In some parts of the world, citizens seem to have understood this. They are adopting Bitcoin as a protection against inflation, as is the case in Latin America. The current price of Bitcoin is already high for many. But it is better to think about buying it (this is not an investment advice), at least if you want to be one of the few survivors of the economic crisis that is shaking our economies.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.