Doc's Daily Commentary

Mind Of Mav

7 Ways Rapidly Rising Inflation Affects You

What Exactly Is Inflation?

Inflation, as defined by the Bureau of Labor Statistics (BLS), is “the overall general upward rise in the prices of goods and services in an economy.” Inflation, on the other hand, is the general fall in the value of money, since the more prices increase, the less each dollar is worth. In 1988, a dollar bought four postal stamps; now, it only buys around two.

Inflation’s Effects and How to Protect Yourself

At first appearance, inflation seems to be nothing more than a swindle — robbing you of the value of your dollars while providing you with nothing in return. However, economists see moderate inflation — say, 1% to 3% per year — as a sign of a strong economy.

Here are 7 ways inflation affects you and the people around you in ways you might not have noticed before:

1. Living Expenses

Inflation’s most evident consequence is that it increases the expense of living. The more products and services become more expensive, the more you spend each year on your total costs — housing, food, gasoline, and health care, for example.

2. Compensation

One positive consequence of inflation on employees is that it tends to raise wages. This occurs because prices are more likely to rise in response to increased consumer spending. This growing demand encourages businesses to expand production, which necessitates the hiring of more people.

3. Workplace conditions

The primary reason inflation tends to increase salaries is because it reduces unemployment. As previously stated, inflation often occurs in conjunction with increased consumer demand, and increased demand forces businesses to recruit more workers in order to meet increased demand.

4. Government Subsidies

While inflation may be beneficial to employees, it is clearly detrimental to someone living on a fixed income — that is, an income that never fluctuates regardless of the state of the economy. For instance, pensioners getting Social Security payments and handicapped individuals receiving Social Security Disability Insurance are examples (SSDI).

5. Insolvency

Inflation is your friend if you are presently in debt. When the dollar continues to depreciate in value year after year, the dollars you spend to repay your debt have less buying power than they had when you took out the loan.

6. Financial savings

If inflation benefits borrowers, it hurts savers, particularly those who hold their money in cash.

7. Financial investment

Investments are classified into two types: debt and equity. Debt is money that you lend to others in exchange for interest. Your bank account balance is an example, since you are theoretically giving it to the bank to lend to others. Additionally, debt comprises corporate and municipal bonds — funds owed to corporations or municipalities.

Conclusion

Inflation is not always beneficial or detrimental. It increases prices and diminishes the buying power of your funds, but it also increases earnings and generally stimulates economic development. This is beneficial to investors and the economy as a whole.

And, of course, consider Bitcoin.

Bitcoin has many advantages over fiat, gold, or real estate. First, it’s not confiscatable like money or gold in the bank. Second, it is portable so it can be taken with you anywhere you go, should you need to escape war or a collapsing economy. Third, is decentralized so it’s impossible to manipulate like stocks or even gold markets do.

In order to protect your wealth, there is no other asset out there like it. Investors a starting to realize this and use it as an alternative to traditional vehicles in order to avoid inflation.

You need a safe haven, a risk-off asset, and a lifeboat for the financial turmoil that is about to unravel. Thankfully, Bitcoin is the best antidote against the expansionary monetary policies we’ve had for the last 50 years.

 
 
 
 

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)

Add your vote to the V3 Portfolio (Phase 3) by clicking here.

View V3 Portfolio (Phase 2) by clicking here.

View V3 Portfolio (Phase 1) by clicking here.

Read the V3 Portfolio guide by clicking here.

What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
Pillars of ReadySetCrypto. We aim to Capitalise on the collective knowledge and experience of the RSC
community & build model portfolios containing the premier companies and projects
in the industry and manage risk allocation suitable for as many people as
possible.

The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

Our Current Allocation As Of Phase Three:

Move Your Mouse Over Charts Below For More Information

The ReadySetCrypto "Top Ten Crypto" Community Portfolio (V4)

Add your vote to the V4 Portfolio by clicking here.

Read about building Crypto Portfolio Diversity by clicking here.

What is the goal of this portfolio? 

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.
This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.
To give an update on the position, each one listed in low to high relative risk:
SoV/money == BTC, DCR
Platforms == ETH, XTZ
Private Money == XMR / ZEC / ZEN
DeFi == MKR / SNX and stablecoins
It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

Current Top 10 Rankings:

 

 

Move Your Mouse Over Charts Below For More Information

Our Discord

Join Our Crypto Trader & Investor Chatrooms by clicking here!

Please DM us with your email address if you are a full OMNIA member and want to be given full Discord privileges.