Crypto is the solution to high prices and devalued currency

Inflation is no fun for the average person. Although we are going through a complex economic moment, there are some ways you can use cryptocurrencies to beat inflation.

Currently, various markets at the international level are in decline. One of the economic consequences of the current crisis is inflation. In other words, the increase in the prices of goods and services in a given period of time.

As we well know, inflation generates a strong loss of economic capacity for traditional users. Various countries and regions such as the USA, UAE, Europe and Asia expect even higher inflation levels in the coming months.

So how do we get around this?

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

Inflation solutions

The crypto market can effectively provide two potential solutions to inflation. This is in contrast to the traditional economic system.

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

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

A deflationary emissions model based on Bitcoin

Bitcoin is a deflationary emission system model. This is in contrast to traditional emission systems which are 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 fiat money emission increases infinitely, the BTC emission system is an emission system with a fixed emission 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 printing more money – quantitative easing – to “solve” economic problems. So saving in foreign currency is not a good idea. Thanks to quantitative easing, fiat currencies can fall in value.

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

Inflation: Find better assets

There are different markets and options so that the user can 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 more than 2 million users. These users can find more than 250 different types of cryptocurrencies in the exchange. Binance is the largest exchange worldwide, it has more than 22 million users internationally.

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

A launch pool allows users to deposit tokens into a pool of funds. They can then farm (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. Get on a cryptocurrency exchange and do some research on how to get around inflation.

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