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How Crypto can Help Curb the Rising Rates of Inflation

The deadly pandemic that has rocked the world over the past few years, coupled with the ongoing conflict in Ukraine, has led to crippling inflation.

Per the latest report by US economists, inflation is expected to hit a new 40-year high this month. Influential figures like SpaceX CEO Elon Musk are concerned about the potential rise in inflation over the next few years.

 

Meanwhile, currency and equity markets face increasing volatility, leaving investors searching for more financial stability. What’s more, the current situation in Europe demonstrates the power that governments wield to seize individual assets and how tech firms can conspire to censor dissidents.  

 

The skyrocketing inflation amid escalating geopolitical tensions will likely prompt individuals to park their savings in a more stable asset class that frees them from the grip of the legacy financial system.

Cryptocurrencies Were Made for This Moment! 

Crypto proponents have long hailed the asset class as a safe hedge that would offer folks a sort of doomsday insurance during uncertain times. 

 

Digital assets like bitcoin are fully decentralized, meaning that their flow cannot be tracked or controlled by governments and banks. Moreover, the supply of coins is fixed, protecting investors against runaway inflation. The decentralized appeal of crypto assets has never been more evident than in these times of economic and geopolitical turmoil. Average citizens worldwide now realize how much their finances are susceptible to the whims of payment giants and politicians, who can quickly freeze anyone out of the financial system.

 

Bitcoin offers everyone an alternative financial system built on the ethos of freedom and financial inclusion. The currency runs on a revolutionary open-source infrastructure that isn’t controlled by any single entity. 

 

Cryptocurrencies seems to have found its safe-haven role after Russia’s incursion into Ukraine. Over the past weeks, bitcoin and other virtual currencies have remained firmly bid as stock prices tank. The trend suggests that bitcoin’s stateless, anonymous, and inflation-proof features are offering folks across the world a source of stability as the world grows more chaotic. 

Global Turmoil Could Drive People to Crypto to Avoid Inflation

As the status quo of the traditional financial order faces its biggest crisis in decades, the mainstream appeal for digital currencies is rising. The total cryptocurrency market has gone from a value of $14 billion five years ago to surpass the $3 trillion mark.

 

Even world governments are looking to get into the crypto boom and regulate the sector that has long operated outside their reach. For instance, US president Joe Biden recently signed an executive order detailing his government’s strategy for creating its own central bank digital currency (CBDC).

 

Image by Foto-Rabe from Pixabay

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