Hedge against unrestrained inflation with crypto

Opinion Article By Cabital

Chairman and CEO of Berkshire Hathaway Warren Buffet this year said at his company’s annual meeting that inflation is running rampant. We in Cabital couldn’t agree more.

A Pew Research Center analysis of data from 46 nations finds that the third-quarter 2021 inflation rate was higher in most of them (39) than in the pre-pandemic third quarter of 2019. In 16 of these countries, including the U.S., the inflation rate was more than 2 percentage points higher last quarter than in the same period of 2019.

When inflation is where it is now – high – you don’t want to have your money in savings accounts, as it is losing value. Sadly, a dollar today will not buy the same value of goods and services in ten years.

Hedge against inflation

As we navigate in an inflationary global economy, it is imperative to seek safe, passive, high-yield income to hedge against inflation.

Keeping inflation-hedged assets in your portfolio will allow you to thrive when you see inflation beginning to shape in the economy, ensuring that you continue to grow your assets even while central banks continue to print new money.

Buying gold has been the most popular hedge against the inflation of cash, but over the years that has changed with people investing in real estate, stocks and bonds, commodities, and mutual funds to name a few.

A new and effective way to hedge against the rising inflation of cash is through buying and depositing cryptocurrencies on digital wealth management and savings platforms.

A great platform to do this on is Cabital – no hidden fees and you can earn up to 12% a year on your cryptocurrency, making bank deposits look completely unappealing. Since Cabital has added SEPA to its deposit options, the cryptocurrency savings platform allows customers to easily transfer their assets between euros and cryptocurrencies to generate high-yield passive income.

Bitcoin is digital gold

One of Bitcoin’s most significant advantages over other cryptocurrencies — and even fiat currencies such as the U.S. dollar — is that it’s said to hedge against inflation over time. Unlike other currencies, there is a limited supply of Bitcoin tokens; 21 million.

Bitcoin, by its very nature, is a deflationary currency. The more people buy it and use it, the more valuable it becomes.

There was recently one major study that explored the future price of Bitcoin. The panel consisted of 42 cryptocurrency experts that included cryptocurrency asset managers and cryptanalysts.

The panelists predicted that the price of Bitcoin would be $318,417 by December 2025 and rise to $4,287,591 by December 2030.

54% of the cryptocurrency experts surveyed foresee so-called hyperbitcoinization – the moment that bitcoin overtakes global finance — occurring by 2050.

There will be a day where 99% of the global population will not be able to ever own a full Bitcoin.

Ethereum 2.0: The future of internet technology

Ethereum is the web 2.0 and will revolutionize decentralized finance and completely change how we make payments and do our banking.

When Ethereum 2.0 is completely rolled out, the world will change forever. Ethereum will be the fuel behind Web 3.0, and will revolutionize gamification, NFTs, DeFi and many other sectors across the Internet.

Standard Chartered values Ethereum at $26,000-35,000 in the future. Like Bitcoin, Ethereum is deflationary, as the protocol burns tokens to prevent inflation.

USDT: The king of stable coins

USDT is a stable coin pegged to the U.S. dollar. It is tested and tried and backed by real world assets.

Tether’s reserves as of March 31, 2021 were composed of 75.85% cash and equivalents, 12.55% secured loans, 9.96% in corporate bonds and precious metals and 1.64% in other investments, including digital currencies. This is consistent with the company’s past statements but more precise.

It is perfect for depositing and staking on cryptocurrency wealth management and savings platforms to generate high-yield passive income, such as with Cabital.

Conclusion

Inflation is here and it’s here to stay for as long as we can see.

Although gold has been a safe-haven asset for hundreds of years, the birth of Bitcoin has brought about an easier and more reliable way to preserve wealth and augment it.

Depositing your cryptocurrencies will not only help you hedge against inflation, but it will also help you create a passive new income stream – empowering you to reach your financial goals faster.

Try hedging against inflation with crypto through Cabital.