Crypto is the alternative solution for high prices and devalued currency

Inflation is not fun for the average person. Even though we are going through complex economic times, there are many ways to use cryptocurrencies to fight inflation.

Currently, various markets internationally are in decline. 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 given period.

As we all know, inflation generates a strong loss of economic capacity for traditional users. Several countries and regions such as the United States, United Arab Emirates, Europe and Asia, among others, are expecting even higher levels of inflation in the coming months.

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So how can we get around this?

The cryptocurrency market has provided high returns since the start of the pandemic through 2021. But could cryptocurrencies be a possible solution to the problem of international inflation?

Inflation solutions

The cryptocurrency market could actually provide two potential solutions to inflation. This contrasts with the traditional economic system.

The first is a deflationary economic model based on the BTC issuing system. (Issue means the creation and release of cryptocurrencies.)

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

A Bitcoin-based deflationary issuance model

Bitcoin is a deflationary emission system model. This is different from traditional issuing systems which are regulated by centralized monetary systems also called central banks. In contrast, the Bitcoin issuance model is a decentralized monetary issuing system.

While the amount of fiat currency issuance increases indefinitely, BTC’s issuance system is an 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. Yet thanks to central banks that print more money – quantitative easing – to “solve” economic problems. So saving in foreign currency is not a good idea. Through quantitative easing, fiat currencies can depreciate.

The cryptocurrency market offers the opportunity to save in stablecoins. Stablecoins are virtual assets that usually have direct support on 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 be able to beat inflation.

Paxful is one such 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 over 250 different types of cryptocurrencies within the exchange. Binance is the largest exchange in the world, has over 22 million users worldwide.

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

A launch pool allows users to deposit tokens into a pool of funds. They can then grow (or earn) new ones at no cost.

You don’t have to sit back and watch your savings slowly lose value in a bank account. Enter a cryptocurrency exchange and find out how you could get around inflation.

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