How Cryptocurrency Could Avoid Inflation Key Takeaways:
- Inflation is not a natural event. Inflation happens because our policies make it happen.
- The centralized nature of our financial system and governance is the reason we have inflation. Officials in control make all the decisions when it comes to our finances and they like solving problems as fast as they could because it is good for their image and popularity. So they print money whenever we get into economic problems.
- The more money we print, the more it loses its value.
- Cryptocurrency will solve this problem because it transfers the power and control of money from the government to the public. There is no central authority to make a decision. Everything is a consensus.
- They also cannot overprint anything. Cryptos are created based on pre-set conditions.
In this episode, Nick and Stevie talk about how cryptocurrency could potentially stop inflation. Inflation happens when there is too much money in the market. Money losses its value. As a result, things become expensive. Bitcoin, the very first cryptocurrency, is capped at 21M. That means that no matter how many products we produce, the supply of money is consistent.
- If you want to learn more about cryptocurrencies, download the 2021 Cryptocurrency Investment For Free: https://bit.ly/3uiJgGA
- Follow us on Twitter: https://www.twitter.com/ #cryptofordummies #cryptoinvesting #bitcoinhate