Cryptocurrencies Vs. Inflation, do cryptocurrencies serve to protect us from inflation?

in hive-175254 •  3 years ago 

Imagen1_191121.png
Free Use Resource from Pixabay, edited with PowerPoint by @tocho2.

Hello Friends..!

I have the pleasure of resuming my usual publications in PH, and this time I have for you a topic of global interest, a topic that may be strange and in other cases may be familiar to many, it is about seeing the hidden face of the phenomenon of inflation through crypto assets.

We know that inflation is an “undesirable” economic process that produces a continuous and prolonged rise in the prices of inputs, materials and services, which means that our money loses value and we cannot acquire these

If you are reading this, it is because you have been in Steemit for some time and it is most likely that you have explored trading, NFT's and other options offered by the world of Blockchain, so it is not a secret for you that there are various mechanisms to generate crypto assets and we can find them on the web by exploring a little here and there.

It is also very possible that some of our readers knew the Blockchain and cryptoactives in the need to generate additional income and / or looking for an alternative that allows making some productive investments, since the need to generate economic income and make investments can be found in any of the continents of the planet, like the phenomenon of inflation, and this is not a secret, we can see it every day in the news of each of our countries.

Inflation is like a "virus" that is present in many countries and spreads uncontrollably, so many people seek to protect themselves from this phenomenon

separadortocho2.jpg

Imagen2_191121.png
Free Use resource from Pixabay.

How could we protect ourselves from inflation with cryptoassets?

This will have already been read elsewhere, but it is never too bad to return to the subject, crypto assets and cryptocurrencies can present rises and falls in their nominal value, this depends directly and closely on the relationship between Supply vs. Demand and the socioeconomic factors that worldwide are happening, and for this reason we are very aware of reviewing the price of BTC (Bitcoin) every day. Simultaneously, "anywhere in the world", the phenomenon of inflation is wreaking havoc with the economy in some country on the planet.

We are all being affected to a greater or lesser extent by inflation, and we have found in investments in crypto assets an economic “relief” given the level of uncertainty that we currently face worldwide in the socio-economic issue.

Acquiring and maintaining cryptocurrencies is a habit that, being well practiced and managed, represents in a way a measure to protect ourselves from inflation, and this generally works as follows:

1.- Investigate cryptocurrencies that keep their price constant "without falling significantly" as a function of time, so that reflecting a constant value can also reflect very few losses for "the pocket".

2.- Acquire cryptocurrencies such as BTC because although it presents ups and downs in the market, by representing an investment, you can sell it or exchange it for another cryptoactive when its value increases in the market at the most convenient moment.

3.- Acquire and save USDT, for when it is a “stablecoin” and its value will remain fixed (without variations) in the market in relation to other cryptocurrencies in the market.

4.- Diversify investments, you can acquire and save different cryptocurrencies according to your preference and knowledge of their behavior in the market, so that "do not put all your eggs in one basket" and to this we can add that they should also handle different wallets.

As you can see, this is not in any case a recipe for success, they are only recommendations based on my own experience and that we could also hear in a talk by an economist or finance specialist, but in any case it can be of great help when it is about safeguarding and protecting our money against the phenomenon of inflation.

In fact, if we investigate a little what "sounds in the networks" and in the news, we will find that the global economic trend tends to tilt "their faith" in cryptocurrencies as a new "asset of great value" already proven.


What do you think of this? Do cryptocurrencies really "have the power" to protect us from inflation? Do you know of any other method or tip that you want to share with us?


If you liked this post, comment and let me know your opinion ..!

More information on this topic here


baner 2.jpg


banner 1.jpg


GIF_MJ_3.1.gif

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Greetings @tocho2 no doubt in countries like Venezuela the use of cryptocurrencies have been a good way to withstand the inflation of a decaying economic system, valuable aspects you have addressed. Entertaining reading. Success in your work

Hello @madridbg, The Venezuelan and many citizens of the world have found a solution in cryptocurrencies, I wish that the next resolutions at the government level do not bring a headache in these cases.

Greetings @tocho2, very good point that you share with us in this post, in my personal opinion cryptocurrencies do help us to cope with inflation, for example in my case I consume everything I receive from my salary in bolivars at once in food or simply invest it in cryptocurrencies and I get a little profit.

this is a good strategy...!

thanks for commenting

Definitely for our countries and personal economies, the cryptocurrency has become an important part of the savings of each one, excellent post, which takes us to a reality that few know and few take advantage of,
Thanks for the contribution

Hello @joseph1956, saving crypto assets has become the best anti-inflation solution for many countries such as Venezuela

Greetings friend @tocho2, certainly cryptocurrencies have been a lifesaver for many who have seen losing the purchasing power of their legal tender, certainly help us to protect ourselves from inflation, as saving money in stable currencies or investing in BTC is better than saving fiat money in the bank, which devalues very fast.

Hello @emiliomoron, I think that at least this is the best alternative we have at the moment

Thanks for commenting

Hi friend @tocho2 I identify a lot with your manuscript, since, I live in a country with a very high inflationary level and without a doubt I can tell you that the crypto market has allowed to mitigate inflation in many households. This year in particular with the rise of several tokens the difference in the quality of life of many people in my country is noticeable.

Friend, from your point of view, what portfolios do you consider safe to have my cryptos well distributed. Have a great weekend.

Actually, wallet issues are quite delicate because the care that the user had with the passwords and different verification methods greatly influences, at the moment I really like Poloniex and Binance, I am just proving that this is going with Metamax and Trustwallet.

Thanks for commenting

@tipu curate

Congratulations, your post has been upvoted by @scilwa, which is a curating account for @R2cornell's Discord Community. We can also be found on our hive community & peakd as well as on my Discord Server

Manually curated by @abiga554
r2cornell_curation_banner.png

Felicitaciones, su publication ha sido votado por @scilwa. También puedo ser encontrado en nuestra comunidad de colmena y Peakd así como en mi servidor de discordia

Greetings

in my opinion, the world of cryptocurrencies is very helpful for people on this earth, for people who understand cryptocurency problems, that's why I chose cryptocurrencies, for good inflation times,

thank you for sharing very useful information.

Dear @tocho2

I enjoy reading this post a lot. After all, topics related to technology, business, economy etc are at top of my list.

Personaly, I consider Bitcoin to be superior store of value. Kind of like Gold 2.0, but in some way much better (easier to transport, easy access to liquidity, bigger community = more noise).

And I believe, that in times of strong inflation more people will be running away from FIAT based currencies and look for "shelter" in many different assets. Bitcoin will most likely do well, partly because those who buy it are doing it mostly to protect themselfs from inflation. Which is just unfolding.

So this fact alone will be working almost like self-fulfilling prophecy.

Upvoted already :)
Cheers, Piotr

Thanks a lot Piotr friend..!