We can all agree that the value of fiat has highly depreciated over time due to inflation, but yet, we keep saving money to stay ahead inflation. The only people not feeling this inflation are the governments of countries world wide. We have been taught and made to believe that saving is great, saving is great but not when the fiat system is broken. I will use my country as an example, this is something I experienced while trying to save money to buy a laptop. I have always wanted to buy a laptop since 2020, so I started saving money.
source
I wanted to buy a laptop, it cost $1,000 to buy this laptop, $1,000 as at that time was worth 360,000 Naira, which wasn’t an easy money to make in Nigeria. Finally made the money and went to gadget to get my new laptop and I was told the price is up by an additional 100,000 naira. Because the value of $1,000 increased from 360,000 to 460,000. Inflation struck, the Nigerian banks printed more money rendering my saved money 100,000 worthless. This was so sad, because, what was the use of saving if the bank could just print more and render the value worth less. Now I have to go back and save some more, hoping inflation doesn’t strike again and make the value of my money worth less. Few months later I saved an extra 100,000 and went to the gadget store again to buy the laptop, I was told the value has gone up. $1,000 is worth 550,000 naira, this means that I have to add an extra 90,000 to my money again.
If I was smart enough by then, I would have saved my money in USDC or HBD and put it in HBD savings. Because the value of my HBD is $1 and will always be $1. Moreover with the APR I still end up with an interest. Do you believe that crypto can be used to control inflation? Wit bitcoin I believe so, because the supply is extremely limited. It has 21 Million supply and they can never be extra because of the smart contract, with other blockchains, it can be uttered, but with bitcoin, its different. So I think Bitcoin is the only cryptocurrency that can be used to control inflation.
Posted Using LeoFinance Beta
