Summary

The article discusses the inefficacy of banning cryptocurrency as a solution to inflation, emphasizing the importance of diversified investment in assets like gold, silver, Bitcoin, Ethereum, and real estate to protect against inflation.

Abstract

The author reflects on their teenage fascination with Bitcoin and regrets not investing at the time. The article delves into the global economic situation post-pandemic, highlighting the surge in inflation and the subsequent rise in popularity of cryptocurrencies and other non-printable assets. It criticizes governmental attempts to ban cryptocurrencies, such as the European Union's rejected proposal, while noting the irony in governments exploring their own digital currencies. The piece questions the trustworthiness of governments in managing such technologies and ponders the possibility of hyperinflation amidst the Russian-Ukrainian conflict and rising gas prices. It advises readers on how to safeguard their finances against inflation through diversified investments and cautions against relying solely on banks, which are increasing mortgage interests and lowering savings rates. The author emphasizes that while inflation cannot be beaten, one can protect their wealth by investing in assets that cannot be printed by governments.

Opinions

The author believes that investing in cryptocurrencies like Bitcoin and Ethereum, along with traditional assets like gold, silver, and real estate, is crucial for hedging against inflation.
There is skepticism about the European Union's and central banks' attempts to develop their own cryptocurrencies, questioning their ability to manage such technologies responsibly.
The article suggests that governments have not earned the trust required to oversee a centralized digital currency, given past mismanagement.
The author expresses doubt over the effectiveness of government policies in addressing inflation and suggests that these policies may be short-sighted or misguided.
There is a concern that hyperinflation could be a real possibility in the near future, given the current economic indicators and geopolitical tensions.
The piece advocates for a diverse investment portfolio to mitigate risk, rather than going "all-in" on a single asset.
The author advises against over-reliance on banks due to their increasing mortgage interest rates and decreasing savings interest rates.
A disclaimer is provided that the article's content is not financial advice but rather an attempt to raise awareness among the public, encouraging individuals to conduct their own research.

Banning Cryptocurrency Isn’t Going To Fix Inflation

Should I have listened to my 16-year-old self?

Investing is rather risky hobby or profession. I’ve tried investing in some things at some points in my not so long life.

When I was 16 I was really obsessed with Bitcoin when it was around $1000/$2000 — that period. Now I wish that I would have invested in Bitcoin.

But I was 16, didn’t have much money so that my money doubled in a week was a big achievement after all. God knows how much money that my Bitcoin would have been worth right now.

Of course, my $50 wouldn’t have made me a millionaire of the back, but I could have continued investing and have a nice portfolio now.

Inflation rates go up & crisis causes government trust issues

Cryptocurrency and Bitcoin have been popular for many years now, but since the outbreak of a global pandemic, the popularity of non-printable assets like crypto, gold and silver are sky-high.

Inflation doesn’t help either.

Politicians worldwide have said for two years long that the inflation was something temporary, which it obviously doesn't.

A lot of economics and financial journalists have warned us for this moment of quick increasing inflation rates — and now the politicians are telling us that it suddenly isn’t temporary anymore.

What?

Of course, people are buying reliable assets like gold and silver.

And politicians are scared, the European Union is trying to ban Bitcoin — luckily that draft has been rejected.

What are they thinking? That cryptocurrency is the cash of criminals — which may have been the case around 2009 to buy weapons on the dark web. But the Blockchain has such a bigger purpose in 2022.

On the other hand, the European Union and the central banks (ECB) are trying to develop their own kind of cryptocurrency — the Central Bank Digital Currency.

Which is basically Bitcoin, owned by a world government.

What could go wrong?

Governments haven’t really proven themselves to be trusted with these kinds of technologies.

Is hyperinflation around the corner?

The big question is: is hyperinflation around the corner?

Perhaps it is. The Russian-Ukrainian war/crisis isn’t helping either, with gas prices surging even more in Europe.

Prices of food and other products are increasing and governments aren’t taking off the taxes on healthy food and nutrition.

Current inflation rate is set around 7.5%, and it is predicted that this will be 7.9% in March — that’s a 0.4 percent point increase in a month!

Hyperinflation might seem far away, and it might be, but we see daily increases in gas prices every day — which is a sign of hyperinflation. How long will it take until we see this with food and other products?

How to beat inflation?

Funny thing. You can’t.

You can’t actually beat inflation — you need to protect yourself and your money from it.

How?

Investing in a couple of things, like things the government can’t print:

Gold & Silver
Bitcoin & Ethereum
Real Estate

Very important is to have a diverse portfolio. Don’t go all-in on one asset like Bitcoin or Ethereum.

This is to avoid as much risk as possible. Another thing to avoid: banks.

Banks are only increasing their mortgage interests and lowering their saving interests.

Disclaimer: this is not financial advice — I only try to raise awareness among the population. Do your own research.

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