People keep wondering why inflation would stay so low during two decades of, on average, low interest rates and massive QE. The answer is simple: it didn't. Assets were inflated rather than consumer goods. Now we're getting high consumer inflation due to war, COVID lockdown, trade protectionism, etc. and as the average person's disposable income dwindles due to higher cost of living, less will be invested.
People who think that crypto is an inflation hedge completely miss the point. We've already had massive inflation - why else would the s&p go up 50% in two years during a global virus outbreak? Now inflation is shifting to consumption and away from investment, and the only strong play right now is probably commodities because they're tied to consumption.
Don't invest in crypto now because you think it will protect against devaluation of fiat. That already happened. There are plenty of other reasons to invest in crypto, but thinking that we are now suddenly in an inflationary environment is the wrong paradigm.
[link] [comments]
You can get bonuses upto $100 FREE BONUS when you:
π° Install these recommended apps:
π² SocialGood - 100% Crypto Back on Everyday Shopping
π² xPortal - The DeFi For The Next Billion
π² CryptoTab Browser - Lightweight, fast, and ready to mine!
π° Register on these recommended exchanges:
π‘ Binanceπ‘ Bitfinexπ‘ Bitmartπ‘ Bittrexπ‘ Bitget
π‘ CoinExπ‘ Crypto.comπ‘ Gate.ioπ‘ Huobiπ‘ Kucoin.
Comments