Everyone is aware of inflation. We know how it happens, that it’s caused by too much money being pumped into an economy, but has anybody ever wondered what this means for everyday people, who are not professional economists? This article teaches you all about how inflation affects your budget and financial health.
How inflation has affected the world economy
Inflation is such an insidious concept. Everyone understands it to some degree or another and yet most people talk about it like its nothing or they wish it would go away. To add another layer of complication, there’s a whole host of other different types of inflation that are pretty easy to confuse. For example, the average inflation rate in the Eurozone has fallen steadily since mid-2013 which some might paint as good news but understand that means more indicators will be headed in the wrong direction – this ties closely into the devaluation of currencies we saw over that period of time. The amount of money in an economy over time really only determines how the country is doing. For example, the US was flourishing before gold was made illegal and its economy deteriorated. Cryptocurrency changes this because it’s decentralized and doesn’t require government validation. It’s been invaluable during these times of inflation and currency devaluation caused by governments.
Benefits of cryptocurrency technology
Cryptocurrency technology has many great benefits, especially because it is legal to avoid inflation. Although it is still illegal in most countries, cryptocurrency can let users transact money comfortably and anonymously like cash. They may transfer any amount of money anywhere in the world without paying high bank fees. This also means that currency exchanges are more difficult for governments to block or influence so citizens are free to hold their funds as they please. Individuals who have grown dissatisfied with their day to day life often consider a career change in order to make a difference. One way to make a difference is by using cryptocurrencies as they are peer-to-peer digital currencies that are not controlled by any third party and allow people to spend, send, and receive money without the interference of traditional financial institutions like banksters.
Pros and Cons of Cryptocurrency
Cryptocurrency is a digital currency used for secure and anonymous transactions. There are many benefits to this technology, including banking the unbanked, free capitation having international borderless assets. On the down side, new FinCen’s ruling means we may be subject to 15+% fines if we mistakenly use our cryptocurrency collections to purchase or sell any goods or services on crypto exchanges. Basically, this ruling places cryptocurrencies as taxable objects in the US.
Various ways to fight inflation
With the globally-watched cryptocurrency market increasing, there have been a number of currencies that have shifted in price. There are many related issues to watch out for when investing in cryptocurrencies and several things you can implement to keep yourself on top of the game.