Depending on the amount of wealth you have managed to accumulate during such excruciating conditions where the pandemic has managed to remove people from their jobs and close down small businesses in a short span of time, you will experience inflation differently. The pandemic just unveiled what the foundation of the American economy is based on. If buying a house was easy last year, this year it is going to be a struggle, and if you struggled with it last year, you get my point! Despite how many financial institutions try to trick you into believing that the economy is going through a recovery phase, it becomes evident just by looking at your bank account that something is not right.
You might be wondering what the consensus among these high-profile bank managers is about the economy. If you think it is to continue with providing false hope, then you are correct. It is almost hard to blame these investors, after all, they spend all their life advocating for something that has worked in the past. The most interesting people are the ones who once advocated for the inflating dollar and now have sided with Bitcoin and cryptocurrencies. Regardless of their intention of investing in cryptocurrencies, it is obvious that the once glorified dollar has taken a major hit.
The Federal Reserve(FED) has also lost a lot of credibility after supporting the inflation is a “transitory” narrative. It has tried to correct the economy by using bond transactions, discount rates, and reserve requirements to no avail. For those who are not aware, these are basically last-ditch efforts to manipulate the market in case something like this happens. Even if you assume that this could work, what does that say about institutions that are only willing to take action once everything is on the verge of collapsing? We are in a state where we have to worry about hyperinflation before looking at how to solve inflation.
Cryptocurrencies have provided a glimpse of hope amid a nationwide crisis, and no, this is not a “choose your poison” situation. Cryptocurrencies have barely made it through intense pressure from traditional investors who have looked down on the admittedly bad reputed industry. They are new, and they definitely need to be polished. There are definitely problems, but the circumstance that we have been given is such that if we don’t double down on something, we might cause more harm than we would like to believe. This does not have to result in investing all your savings into dogecoin only to resort to traditional stocks to break even on your investment. Most countries and even a few banks have made it clear that they want to explore what a digital currency can do for the economy, but until it doesn’t become “official,” people have to take control of where they are putting their money. As most people cannot afford to leave their country so it is important to at least get educated on the market or other altcoins that are innovating the Crypto Space.