Why is inflation only recognized now? | Author: Dwayne D’cunha | The Capital | June 2021
Under such painful conditions that this pandemic has managed to make people unemployed and close small businesses in a short period of time, how much wealth you have accumulated, you will experience different inflations. The pandemic has just revealed the foundations of the American economy. If it was easy to buy a house last year, it will be difficult this year. If you encountered difficulties last year, you know what I mean! Although how many financial institutions try to deceive you into believing that the economy is going through a recovery phase, just check your bank account and it is obvious that something is wrong.
You may be wondering what the consensus of these well-known bank managers on the economy is. If you think this is continuing to provide false hope, then you are right. It’s almost hard to blame these investors, after all, they have been advocating things that worked in the past all their lives. The most interesting people are those who once advocated the inflation of the dollar, but are now on the side of Bitcoin and cryptocurrencies. Regardless of whether they intend to invest in cryptocurrencies, it is clear that the once glorious US dollar has suffered a major blow.
The Federal Reserve (FED) has also lost a lot of credibility after supporting inflation as a “temporary” narrative. It tried to correct the economy by using bond transactions, discount rates and reserve requirements, but to no avail. For those who don’t know, these are basically the last efforts to manipulate the market when this happens. Even if you think this is feasible, what does it mean for organizations that are willing to act only when everything is on the verge of collapse? Before considering how to deal with inflation, we must first worry about hyperinflation.
In a national crisis, cryptocurrency offers a glimmer of hope, no, this is not a “choose your poison” situation. Cryptocurrencies have hardly withstood the tremendous pressure from traditional investors, who look down on this recognized bad industry. They are new, and they definitely need to be polished. There must be a problem, but what we get is that if we don’t redouble our efforts, we may cause more harm than we want to believe. This does not necessarily result in investing all of your savings in Dogecoin, just to resort to traditional stocks to achieve a balance of investment. Most countries and even some banks have made it clear that they want to explore the role of digital currency in the economy, but before it becomes “official”, people must control where their money is. Since most people cannot afford to leave their country, it is important to at least be educated in the market or other altcoins that are innovating in the crypto space.