It is very well known by now that the US government has printed about 40% of the whole circulating USD in the last two years as a way to relieve suffering families. This pattern has been replicated throughout the world. Specifically, in industrialized countries such as in Europe.
All of these will have consequences in the long run and inflation is probably the most important one. It is inevitable that inflation will come as there is a higher number of Dollars in circulation which will bring prices up. This in essence will cause the value of our fiat money to depreciate in price. However, if you are part of Publish0x, you have an advantage because you are probably already exposed to DeFi and the world of cryptocurrencies. This means that we should grasp the basics of how a decentralized financial system works.
Given these facts it is no secret that investing in cryptocurrencies does protect us against inflation. Cryptocurrencies and Bitcoin in specific is by nature a deflationary asset because there is a finite number of coins. What does this mean to us investors? That in the long term, the price of our digital assets can only increase.
This post is focused to long term investors that don’t mind the bumpy ride. As we recently saw, bitcoin hit highs of 61k per coin to then lose almost 20% of its value and dropped to as low as 50k per coin, all of this in matter of days (around 10 days). Now, we are trading again at 58k (at the time of this article). I do believe that Bitcoin will surpass the 100k price by the end of this year. It might crash again, but a reasonable support level at this point in time is 50k.
Invest in the future. Do yourself a favor, do some research, and invest accordingly. I can tell you one thing though: I am in it for the long term. And I take every deep as a chance to increase my position.
For other short reads on relevant topics: