Cryptocurrencies are the thing of today. That’s set in stone by now. Some understand the need for digital money, and some don’t. I mean, surely you’ve met people who ask questions like “Why do we even need cryptocurrencies?”.
We‘ve previously talked about the need for digital money in this digital world. But, there’s another important point on the subject we wish to share. And we’re going to do it now. Be warned though, as this may affect some of you on a somewhat personal level. Ready, set, go!
Hyperinflation & worthless money
Do you happen to know someone who’s been saving up their whole life just to pass the collected wealth (the so-called treasure) on to their children or grandchildren? Most probably you do, right? The sad fact is that most of these people, the collectors, aren’t left with much in the end. Because the process of money creation and inflation has literally eaten the majority of the value of the funds. If their money was just left to sit in an account not earning any interest for decades, then its value today is way down. Nearly worthless even. Shocking, I know.
The current situation is (and, actually, always has been) that it’s the government who controls the money supply. Vast amounts of new money are printed every year. And that’s downright outrageous if you ask us, or anyone else who understands the fiscal system. Actually, you don’t even need to know the fiscal system in depth to fathom the fact that it’s not okay to keep on printing new money.
Why so? Well, it means that the purchasing power of the currency becomes weaker and weaker. There is, of course, the need to maintain a healthy inflation level and that’s is absolutely understandable. But mostly what happens is that the printing of extra money is going way overboard. There’ve been numerous cases throughout the history where hyperinflation is brought about because of it.
For example, after the World War II in 1946 the prices doubled every 15 hours in Hungary. Just ten years ago Zimbabwe experienced similar hyperinflation which led to prices doubling every 25 hours. The latter case is one of the (if not the worst) hyperinflation cases of the current century.
Sure, these are extreme cases, but as John Lennon used to say: life is what happens to you when you’re making other plans. So, do not take these examples much too lightly. The fact is that the value of your money is on a steady downfall. Period.
How to stop the scenario mentioned above from happening?
It’s a good question. We, as humankind, need to start using an entirely different means of payment. Something unlike the mainstream fiat currency we’re using today, the “regular” money.
And the solution for a better tomorrow is, you’ve guessed correctly, cryptocurrency. Exclamation point.
Want to know more? Give us a shout!