The Effects of Inflation on Fiat, Cryptocurrency a way out

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In my blog today I'll be responding to the contest; The Effects of Inflation on Fiat, Cryptocurrency a way out

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But before I answer the question based on the contest hints given, I would give a little explanation of what CRYPTOCURRENCY and FIAT is.

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Cryptocurrency is a digital asset that appreciates over time like lands or stocks. It is a form of money that has much value attached to it uses cryptography to secure transactions.

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FIAT( naira, dollar, euros etc)
It is a government issued currency to a country for running transactions. I can also say it's a FIAT is a physical form of money.

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Inflation is simply an increase in the price of goods and services with a fall in the purchasing power of money. There are different causes of inflation although there are few outstanding causes that can't be done without. And they include:

• Demand-pool inflation
  This is the type of inflation that occurs when the demand of goods and services goes higher than the economy's ability to meet up with those demands. This causes high pressure on prices leading to inflation.

• Cost-push inflation
  This is a rapid increase in prices of goods and services as a result of increase in the cost of wages and materials. for example, the cost of building materials like zinc; when the cost of zinc goes up it may generally affect house rent within that particular time. This means that if the cost of building materials increases in price there is a direct increase in rent.

• Increase money supply
  This is simply the total amount of money in circulation. Should there be any increase in money supply faster than the rate of production it could result to inflation. This is because when there is excess FIAT it will have few commodities to cover.

• Devaluation
  This is one of the causes of inflation in the sense that it is a decrease in adjustment in a country's exchange rate resulting to low power value. This leads to foreign goods/products for the devaluing country to be more expensive which forces citizens of that country to go for domestic products over imported goods

• Rising wages
  As the name implies, it is an increase in wages of production companies. If wages are not gradually increased, it may lead to inflation compared to when it is suddenly raised.

• Policies and regulations
  Different government policies, regulations and bans has direct impact which can lead to inflation. These policies may increase demand more than supply thereby leading to increase in cost.

No doubts the above listed causes affects FIAT but has less impact on cryptocurrency.
The "BITCOIN" as a cryptocurrency is self sufficient and should be used as a country's reserve because it has a stable supply of 21 million. FIAT decreases in value over time due to more generation compared to Bitcoin that has a fixed supply.

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Also with the presence of decentralized finance, it is important to make crypto investment in our current dwindling economy because the Cryptocurrency is decentralized whereby all lending, borrowing and rewards are clearly visible without any central authority. More importantly cryptocurrency serves as a store of value because it has a known supply and You also get higher rewards from borrowing assets talk more of low transaction fees and good security involved.

Experience they say is always the best teacher. Investing in cryptocurrency has given me a lot of experiences of which positive and negative are far fetched. Although they say HODL ( Hold for day life or holding for a long term) is best for cryptocurrencies but to me I would say it depends on the time or season your HODL started. Personally, I believe the best period for HODL is from bear season to bull season. I am able to say all these because I have the best of negative experiences of HODL. As a newbie, I started crypto early 2021 when the market was so greenish, I bought a handful of crypto assets which includes BitTorrent (BTT) klever(KLV) and WAKANDA INU (WKD)
Actually I bought all at their alt time highs after paying $100 for a crypto class. In summary, those assets are in their -70 to -80% from my buy price. I weep now but can't weep more because I've got a diamond hand and believe that the bull season will definitely come through.

There are different ways of investing in the Cryptocurrency space and this could be either by creating a wallet (centralized or decentralized) where I want to save my cryptocurrency assets. I can also invest by buying directly with FIAT using my debit or credit card or sending my public address to a crypto user who will inturn withdraw crypto assets to it. Investments could be for long or for short term periods, investing for long term periods and in a decentralized exchange ( non-custodial wallet) is more safer and yields more return.

Finally, to a great extent cryptocurrency has put smiles on the faces of some citizens unlike our normal FIAT that has greatly been affected by inflation