With the financial world in turmoil and reeling in from the effects of the pandemic, the new CPI for June gives people a reality check. It showed that all prices have risen by 9.1% and wages haven’t kept up.
This means if you haven’t gotten a 10% raise in the last year, your burning power has reduced and you can now purchase less stuff for the same money. Food prices alone increased by 10.4% and energy prices have gone up by 41.6%.
One would expect that due to this Gold prices will also go up and the Crypto too. But that did not happen. In fact, the crypto market crashed and is now slowly recovering from the 2020-21 pandemic.
Inflation is good for you and is being touted by debtors as a great way to deceive the common people. As inflation increases the value of your house increases, in the long run, your debt burden is decreased. But what about the food and energy costs that have gone up. Your real debt easing is just a tiny factor as compared to the price of everyday items rising.
But if your wages have been stagnant then you have no real benefit from this inflation. Gold has been a hedge against inflation but that also is underperforming. And for the first time since 2022 the value of the Dollar has been below the Euro.
With all these changes happening it is the perfect time to start your crypto journey and set up a hedge against inflation.