Inflation is the hidden tax. It is the mechanism that ensure your purchasing power tomorrow will be lower that your purchasing power today. If you don't take steps to protect yourself against inflation it will slowly (or not so slowly!) eat away at your wealth.
But what should you do about it? How useful is Bitcoin as a protection?
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To keep up with inflation acting fast is key
The takeaway
Stepping back from the monthly inflation print, the last few years cumulatively created a lot of price increases, +20% in 3 years.
Over the same period the best assets you could have bought to protect against inflation are commodities and Bitcoin (or Ethereum).
Stock indices or real estate would have done the trick too. The only asset that was a waste of time was gold…
But in all cases it was important to act fast. As soon as the conditions for inflation show up is the correct time to build your positions. When inflation is finally there you are late to the party.
This is an important lesson to learn.
The problem of the public debt is mounting, especially for the US$. This will incentivizes processes of monetization of the debt by which the Federal Reserve will dilute the value of the dollar in order to lessen the burden of servicing the debt.
This is a fertile ground for inflation. Better prepare for it right now.
The easy days are behind us
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