“Everyone with paper savings fears inflation. But after years of low or almost no inflation in many parts of the world people cannot stop talking of a coming inflationary storm“– Paul Ebeling
Simply put: Inflation is the steady rise of prices for goods and services over a period, has many effects, good and bad. Because inflation erodes the value of cash, it encourages consumers to spend and stock up on items that are slower to lose value. It lowers the cost of borrowing and reduces unemployment.
Inflation is now a given, so it is logical to expect fiat currency holders to respond. Pressures like these naturally push investors toward “safe assets” – traditionally blue-chip stocks and gold. But more recently, the “safe asset” category has a new member: crypto.
We see all crypto assets as digital gold because are mostly held as assets that are not used as a form of payment in a significant way now.
Perhaps we will find out soon if crypto really has what it takes to go toe-to-toe with fiat!
Have a prosperous day, Keep the Faith!