Inflation, The New Disaster Of The World


 

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It seems that the entire world is suffering from economic inflation, it is no longer limited to some regions , but has become a problem for almost all countries over the world.

 

The annual inflation rate has reached  more than doubled between the year 2021 and 2022.

The inflation rate in March 2022 was 9.2 percent, compared to 3.7 percent during the same month last year.

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A high rate of inflation means an increase in the prices of basic goods and services such as food, energy, transportation and clothing, which in turn leads to an increase in the cost of living.

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Is trading currencies the main cause behind the occurrence of this inflation?

 

 Many analysts declared that the most important fertile environment that helped inflation is digital currencies and banknotes that are not covered with gold or a basket of currencies, since if it were not for the creation of money by increasing the money supply in exchange for the non-availability of the commodities that it should represent; And if there were real bonds for real money, inflation would not have happened,there is no cover for digital currencies in gold or other in-kind money. 

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Central banks are based on the production of traditional paper currencies within controls and according to a corresponding stock of minerals such as gold or a basket of currencies such as the dollar, the pound sterling, the Japanese yen … etc. As for digital currencies, they are not subject to any controls of any kind and are based on their production by individuals called “miners”.

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We may find that some countries are conservative with regard to the issue of economic inflation, but the huge recent price hike is only a warning that things are never going well. When prices start to rise, some begin to retrench and many put more pressure on their spending and investment. After all, many realize that their financial resources will decrease in the future compared to the present. However, he first victim in the midst of all this turmoil is that simple consumer who will suffer a lot if I do not say that his suffering has already begun about two years ago or more .

 

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If it is indeed proven that digital currency trading is the main cause behind inflation, then it is certain that a campaign of another kind will start to limit currency trading, completely ban it, or freeze it for a certain time until economic inflation is overcome, knowing that there are some countries that still prevent trading digital, yet, this vision is far from being adopted regarding the skyreketing increase of currency mining and trading in the previous last three years especially during Covid19. 

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So, will the fight against digital currencies succeed?!! or will it cause increasing anxiety and a state of mania affecting the world?!! According to Ivan Kwiatkowski, he explained: "Cryptocurrencies don't deliver on anything they promise; But even if they did - it would be a disaster." 

 

Whether the countries will intervene and impose restrictions on dealing with them or trading them or will they decide to seek further resolutions to stabilize the economic balance , in any way, the  change of things becomes a must under such serious issue . 

 

Only the upcoming months are able to answer the questioning of most people for nothing seems predictable about the collapse of many countries'economy around the world while others are on their way to bear the same fate. 

 

Thanks for taking time to read. 

 

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Rachabel
Rachabel

I am a graduate from university, love reading, writing and translation. I love books and everything related to knowledge.


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