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Hedge Against Unchecked Inflation With Cryptocurrencies

Amid unchecked inflation, cash and credit are becoming liabilities. Investing in cryptocurrencies such as Bitcoin and depositing them is a great and new way to hedge against inflation and even generate high-yield passive income.

Amid unchecked and unrestrained inflation, cash and credit are becoming liabilities.

Below are the real central bank rates (rate minus inflation):

  • Argentina: -13.4%
  • Poland: -5.4%
  • U.S: -5.2%
  • Peru: -4.0%
  • Canada: -3.9%
  • Australia: -3.7%
  • Brazil: -3.4%
  • Chile: -3.3%
  • Norway: -3.2%
  • UK: -3.1%
  • Philippines: -2.9%
  • Czech Rep: -2.6%
  • Sweden: 2.1%When Ethereum 2.0 is completely rolled out, the world will change forever. Standard Chartered values Ethereum at $26,000-35,000 in the future. Like Bitcoin, Ethereum is deflationary, as the protocol burns tokens to prevent inflation.

According to Michael Saylor, the Co-founder of MicroStrategy, the numbers above are nominal government issued CPI metrics. He believes that actual monetary inflation as measured by asset price appreciation is much higher in all jurisdictions. Therefore, the negative real yields are much worse than the numbers above suggest.

That is a scary thought and real central bank rates in the Eurozone aren’t in a good place either: sitting at -3.9%. 

You don’t want to be holding onto many euros in your savings account right now. If you are, you are certainly losing money. 

While savings accounts across Europe are paying virtually nothing, consumer inflation in the 19 countries sharing the euro hit a ten year high in July. Sadly, a euro today will not buy the same value of goods and services in ten years.

Hedge against inflation

As we navigate in an inflationary global economy, it is imperative to seek safe, passive, high-yield income to hedge against inflation.

Keeping inflation-hedged assets in your portfolio will allow you to thrive when you see inflation beginning to shape in the economy, ensuring that you continue to grow your assets even while central banks continue to print new money.

Buying gold has been the most popular hedge against the inflation of cash, but over the years that has changed with people investing in real estate, stocks and bonds, commodities, and mutual funds to name a few.

A new and effective way to hedge against the rising inflation of cash is through buying and depositing cryptocurrencies on digital wealth management and savings platforms.

A great platform to do this on is Cabital – no hidden fees and you can earn up to 12% a year on your cryptocurrency, making bank deposits look completely unappealing. Since Cabital has added SEPA to its deposit options, the cryptocurrency savings platform allows customers to easily transfer their assets between euros and cryptocurrencies to generate high-yield passive income.

Bitcoin-Digital gold

I believe that it is a great idea to invest in Bitcoin, digital gold, to hedge against inflation and generate interest on it through a cryptocurrency savings platform. 

There will only ever be 21 million Bitcoins minted as it is encoded in its source code, making its max supply a perfect hedge against the inflation of euros and other cash.

There was recently one major study that explored the future price of Bitcoin. The panel consisted of 42 cryptocurrency experts that included cryptocurrency asset managers and cryptanalysts. 

The panelists predicted that the price of Bitcoin would be $318,417 by December 2025 and rise to $4,287,591 by December 2030. 

54% of the cryptocurrency experts surveyed foresee so-called hyperbitcoinization - the moment that bitcoin overtakes global finance -- occurring by 2050. 

There will be a day where 99% of the global population will not be able to ever own a full Bitcoin.

Ethereum 2.0: The future of internet technology

Ethereum is the web 2.0 and will revolutionize decentralized finance and completely change how we make payments and do our banking. 

When Ethereum 2.0 is completely rolled out, the world will change forever. Standard Chartered values Ethereum at $26,000-35,000 in the future. Like Bitcoin, Ethereum is deflationary, as the protocol burns tokens to prevent inflation.

USDT: The king of stable coins

USDT is a stable coin pegged to the U.S. dollar. It is tested and tried and backed by real world assets. 

It is perfect for depositing and staking on cryptocurrency wealth management and savings platforms to generate high-yield passive income. 

Conclusion

Inflation is here and it's here to stay.

Although gold has been a safe-haven asset for hundreds of years, the birth of Bitcoin has brought about an easier and more reliable way to preserve wealth and augment it.

Depositing your cryptocurrencies will not only help you hedge against inflation, but it will also help you create a passive new income stream – empowering you to reach your financial goals faster.

Edited by: Baron Laudermilk

This article has been prepared by Cabital Fintech (LT) UAB  (the “Company”) and is general background information about some of the Company’s activities at the date of this presentation.

This article does not contain all the information that is or may be material to you and should not be considered as advice or a recommendation to you in respect of the holding, purchasing or selling of digital assets and does not take into account your particular objectives, financial situation or needs. This article has been made to you solely for information purposes. This presentation may be amended and supplemented as the Company sees fit, may not be relied upon for the purpose of entering into any transaction and should not be construed as, nor be relied on in connection with, any offer or invitation to purchase or subscribe for, underwrite or otherwise acquire, hold or dispose of any digital assets, and shall not be regarded as a recommendation in relation to any such transaction whatsoever. The contents of this presentation should not be considered to be legal, tax, investment or other advice, and you  should consult with your own counsel and advisers as to all legal, tax, regulatory, financial and related matters concerning an investment in or a disposal of such digital assets and as to their suitability for you.

This presentation and its contents are proprietary to the Company, and no part of it or its subject matter may be reproduced, redistributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant person’s professional advisers) or published in whole or in part for any purpose without the prior written consent of the Company.

This article contains forward‐looking statements. Such forward‐looking statements involve known and unknown risks, uncertainties and other important factors. Certain forward‐looking statements are based on assumptions or future events which may not prove to be accurate, and no reliance whatsoever should be placed on any forward-looking statements in this article.

The information in this article has not been independently verified. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the presentation and the information contained herein and no reliance should be placed on it. Information in this article (including market data and statistical information) has been obtained from various sources (including third party sources) and the Company does not guarantee the accuracy or completeness of such information. 

Raymond Hsu

CEO of Cabital

Raymond’s 10 years of experience holding leadership positions in fintech companies and banks inspired him to democratise digital currency financial solutions with Cabital.