Robert Steinadler, a year ago

Inflation is increasing: 7,5 % overall in the EU – Can crypto save us?

Inflation is a topic that has been picked up by Bitcoiners and the broader crypto community almost 2 years ago when the Corona crisis started. Now it’s here and its effects are devastating not only to the economy but more importantly to the average Joe who is working a full-time job and all of a sudden, his purchasing power is going down the drain. Cryptocurrencies and particularly Bitcoin have been discussed as an inflation hedge.

Is there a way out for Jane and Joe? And will Bitcoin save all the hodlers?

This is not a test

Sometimes life hits you fast and this time it hits even faster. Total inflation of 7,5 % in March leaves a bitter taste in the mouth of consumers. And that’s just the number for the whole EU, depending on the choice of data material and the method that is applied for creating the statistics the results are even worse.

According to a report from inflation has hiked up to 12 % in the Netherlands in March using the HICP. Asking your boss for a raise probably won’t help and the ECB didn’t announce any countermeasures unlike the FED did. And even if they did it would take months until results are achieved. In the meantime, prices go up continuously.

Is there a way out? Can each person take their own economic independence into their own hands and escape this poisonous effect?

Crypto might be the answer

In the last few years, Bitcoin was always discussed as being a savior in such a hostile environment. But we all have to acknowledge the fact that it is not only digital gold that could be potentially helpful in fighting inflation.

All it needs is to take a look at several opportunities to create income by using Defi protocols along with stablecoins. There is around 19 % APY on the US-Dollar stablecoin UST to be earned with Terra’s Anchor protocol. Using the Ethereum-based aggregator Yearn one can create an income using the Curve EURN vault. Effectively earning 14,86% on tokenized Euros at the time of writing.

Of course, all those investment opportunities come with a high risk. But as the situation of the economy shows there is no such thing as security available at the moment. This leaves consumers with a very narrow choice. They either watch the purchasing power melting away or they risk jumping into a brand-new world with a lot of experimental technology. The second option has an advantage over the first. It is more exciting to learn new things and ways to handle your own financial business rather than waiting for others to decide what’s going to happen.

Featured articles
Four trading strategies for crypto
Bitcoin and Ethereum: what are the differences?
What determines the Bitcoin price?
Related articles
Bitcoin Pizza Day 2023: What can we learn from this historic moment in Bitcoin’s history?

May 22, 2023

Every year the Bitcoin community is celebrating the fact that somebody bought two pizzas online. This looks a little bit strange at first glance but it is one of the most important moments in Bitcoin’s history. What is Bitcoin Pizza Day all about and why is everybody celebrating it?

Trade anytime, anywhere

Boost your trading impact and reaction time in over 80+ cryptocurrencies via instant access to your portfolio with the LiteBit app.

App Store
Google Play Store
  • 2525 Ventures B.V.
  • 3014 DA Rotterdam
  • The Netherlands
More info
  • Support
Subscribe for updates

Sign up to stay informed via our email updates

Explore popular coins
    © 2023 LiteBit - All rights reserved