Crypto is the solution to high prices and devalued currencies

Inflation is no fun for the average person. Although we are going through complex economic times, there are many ways to use cryptocurrencies to fight inflation.

Several markets are currently in decline internationally. Inflation is one of the economic consequences of the current crisis. In other words, the increase in the prices of goods and services over a period of time.

As we know, inflation causes a strong loss of economic capacity for traditional users. Several countries and regions, such as the United States, UAE, Europe and Asia, expect even higher inflation levels in the coming months.

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So how can we get around this?

The crypto market has delivered high returns from the start of the pandemic until 2021. But could cryptocurrencies be a possible solution to the international inflation problem?

Inflation Solutions

In fact, the crypto market could offer two possible solutions to inflation. This is in contrast to the traditional economic system.

The first is a deflationary economic model based on the BTC issuance system. (Problem means creating and releasing cryptocurrencies.)

And second, an answer could be seen in stable virtual assets or stablecoins.

A deflationary issuance model based on Bitcoin

Bitcoin is a model of deflationary issuance system. This differs from traditional issuance systems regulated by centralized monetary systems, also known as central banks. In contrast, the Bitcoin issuance model is a decentralized monetary issuance system.

While the amount of the issuance of fiat currency increases infinitely, the issuance system of BTC is a issuance system with a fixed issuance maximum.

Virtual assets or stablecoins

When the user decides to save in currencies such as dollars or yuan, they create a store of value. But thanks to the central banks printing more money – quantitative easing – to solve economic problems. Saving in foreign currency is therefore not a good idea. Quantitative easing can cause fiat currencies to fall in value.

The crypto market offers the opportunity to save in stablecoins. Stablecoins are virtual assets that usually have a direct backup of a real asset such as dollars or gold.

Inflation: Finding Better Assets

There are several markets and options for the user to find well-known stablecoins and beat inflation.

Paxful is such an exchange. Users can access stablecoins through their peer-to-peer system. Phemex is another example: it has a community of over 2 million users. These users can find more than 250 different types of cryptocurrencies within the exchange. Binance is the largest exchange in the world and has more than 22 million users worldwide.

Users of these exchanges will be able to find various stablecoins, altcoins and will also have the opportunity to invest on their Launchpool.

A launch pool allows users to deposit tokens into a money pool. They can then grow (or earn) new ones for free.

You don’t have to watch your savings slowly lose value in a bank account. Get on a cryptocurrency exchange and research how to get around inflation.

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Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action the reader takes with the information on our website is strictly at their own risk.

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