Economist Bernard Connolly Warns — Bubble In Bitcoin Could Lead To Hyperinflation.

XcelTrip|2 min read|Jul 22, 2021

On July 9, British economist Bernard Connolly spelled out the problem which he believes has already been hinted at by central banks, the dilemma of ‘bubbles’.

In a cautious article christened “How A Bitcoin Bubble Could Lead To Hyperinflation,” he emphasizes that cryptocurrencies could lead to hyperinflation if their adoption threatens to weaken the authority of central banks.

The number of banks and regulators moving in to control or ban the use of cryptocurrencies has risen in the past few years. While most have strongly argued for the unconditional adoption of crypto in replacing fiat currency, some specialists fear that such a move is naïve and would cause more harm than good.

Connolly states that bubbles in the financial system draw a picture of deeply entrenched inequity in economies anywhere.

“The downward trend in real long-term interest rates which has persisted throughout this millennium and has only been accentuated by the pandemic fuelled the bubbles which have been needed to regain and maintain full employment and fend off deflation,” he says.

Xceltrip truly believes — the year 2022 is going to be the exponential growth year where more use-cases will be added including Restaurant Reservations, Transport Services, Entertainment, Tours and more as Blockchain technology is growing rapidly every day. It doesn’t stop here, instead, it’s the beginning of disruption! Looking at the current state of the blockchain ecosystem, we feel that the most prudent, practical and tactical way to design and architect the system is to adopt a progressive decentralization roadmap.



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