Published
2 years ago on
June 07, 2021
You’ve done it! You discovered that cryptocurrencies aren’t just another fad the nerds in Silicon Valley cooked up for their amusement. You’ve realized that the blockchain technology which allows for anonymous and secure transactions isn’t even the most impressive thing about cryptocurrencies.
Instead, it’s the fact that cryptocurrencies are becoming a veritable solution to the potential devaluing of fiat currencies due to policymakers extending the supply of cash.
U.S. Congress, for instance, spent over $6 trillion in 2020 and is looking to conjure up even more cash through a proposed infrastructure bill.
Traditionally, such inflationary measures made investors purchase more gold and other “rare metals” to offset their potential loss in cash assets. However, these resources are still saddled with being unquantifiable in terms of total circulation and thus subjected to the whims of market forces.
Case in point: the price of gold peaked in August 2020 but has since retreated despite vast injections of newly minted cash into the U.S. economy. This means gold is no longer a surefire bet in uncertain times.
Decrypting Cryptocurrencies for Everyone
On the other hand, cryptocurrencies have a limited or pre-determined, publicly trackable supply. Of course, cryptocurrencies are not without their flaws.
For starters, the low barrier to entry to starting one’s digital currency means we’ve seen cryptocurrencies created for a lark or created with inadequate security protocols.
