Hi Readers,

In this article, we are going to discuss yet another current topic on whether the crypto investments would beat the inflation. 

At a time when the Annual Global Risks Report for 2023 published on 12 January 2023 by World Economic Forum ahead of the World Economic Forum Summit - WEFS which would begin from January 16, 2023 at Devos, I consider this is quite pertinent to discuss and understand in detail. “Cooperation in a fragmented world.” is the tag line for this year's WEFS. 

Well, inflation is the term which is being pronounced often by the central banks of the countries worldwide and they take very serious decisions by hiking the interest rates with regular period of time. 

In the general terms, inflation can be defined as a general rise in prices thereby directly impact the cost of living, financing, and doing business of the common people. In other terms, Inflation is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods, commodities and services in an economy. 

Typically from the good olden times, Gold has been widely used as a hedge against the inflation. With the crypto assets being gained popularity, it is commonly believed that crypto investments would beat the inflation. 

As the economies are closely interlinked in the world- across the countries- if there is a problem in one country would make further problems in other countries as well. The real time classic examples of the Covid problem in China hit the supplies of various things to other countries which incremented the inflation. The Russia- Ukrain war made things severely in terms of inflation across the world. The most recent example is with Srilanka where we witnessed the complete mess due to high inflation. 

The Central Banks of various countries would take necessary steps to manage and contain inflation including the printing of additional currencies, hike interest rates etc.,

The people are ultimately bear the direct consequences and they suffer a lot to manage things. 

If we take the global scenario, nearly half of the global countries are severely hit with the double digit inflation. Following infographics would clearly represent the conditions without any further explanation.

With the expected and anticipated risks in 2023, people around the world would continue to suffer with inflation though the recent US consumer price index data gave some additional hopes to make the inflation under control in Jan 2023 compared to Dec 2022. This also made hopes that the Central Bank would decrease the interest rate little by little.  

But we can't predict exactly. 

Let's quickly run through the infographic of the Global Risks Report which is published yearly by the World Economic Forum for 2023. 

From the above graphics, we continue to make constant plans to beat the inflation. 

If the returns of our investments yield interest above the inflation rate would only save us. The traditional investment instruments like Fixed Deposit in Banks would not help us. 

Now with the more awareness from the public on inflation and the various asset classes- including real estates, commodities like Gold, stock markets, digital assets including cryptocurrencies to make wiser decisions.

The advantages due to cutting edge technological advancements make them informed decisions, access to the most of the investment platforms with the comfort of sitting at home. 

By taking some calculated risks, if the people invest in different asset classes for a longer period in time would help the people to overcome the inflation in a better way. 

The investment in various crypto assets will definitely beat the inflation if it is invested in discipline manner with wisely in various good projects from time to time, patient waiting, additional investment at the bottom- Dollar Cost Average Method, book few projects at uncertain times, scan and invest in interesting new projects, not put all money in one basket of crypto etc. would highly help the investors in these uncertain times. 

The trade bots which are offered by various central exchanges would also help the investors in a greater way. 

And, thank you so much for the patient reading and support. I have annexed the detailed report where I referred the above datas which would help you for further reading in this regard.