Definition of inflation: In economics, inflation refers to a general progressive increase in prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. Wikipedia
This article is from today It’s basically highlighting three months ago, President Biden assured his fellow Americans that a surge in inflation was temporary.
Now, Biden and the Fed either have to redefine “temporary” or come up with a different narrative.
Overall inflation hit 6.2% in October, the highest level of price hikes in 31 years.
Thankfully there are things you can do with you money to protect your savings against inflation. Some include purchase of gold, commodities, real estate, stocks, bonds, leveraged loans, and my personal favorite investing in cryptocurrencies.
I will make a example with the most commonly known cryptocurrency bitcoin. On 3 January 2009, the bitcoin network came into existence with Satoshi Nakamoto mining the genesis block of bitcoin.
Bitcoin first started trading from around $0.0008 to $0.08 per coin in July 2010. Im sure what I just mentioned I need not to explain any further where this is going.
This chart shows that bitcoin has bearish & bullish cycles but zoom out, long term you cannot go wrong.These gains tho…
Often bitcoin is referred to as digital gold. Considering gold is known to be one of the best options against inflation that’s a new age complement!
This gold chart is the same time period as the bitcoin chart above.
Gold definitely is a better option than fiat, but no denying bitcoin is king!
This is just a example of one cryptocurrency that you can invest in to avoid inflation. Other options include alternative coins or also know as ALTs, Non Fungible Token (NFTs.) Unfortunately the crypto market being so new we are for the most part still in a speculation phase. So before investing your hard earned money be sure that project has a true utility.
Below is a example of the Intercoin movement.