Here I am with another bitter rant about inflation, inflation is a big pain in the ass to the citizens because it’s the citizens that are suffering from it the most more than the government. But this time around I will be talking and ranting from a citizen earning in the country’s local currency point of view. So over the years if you noticed, no matter how much minimum wage increases it will never be enough to allow you save. This is because, inflation always has a way of taking the money back. Inflation is the reduction in buying value of a currency, so when it is increasing, purchasing power is decreasing as well.
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No matter how much increase in income you earn, if the rate of inflation is increasing far more than your pay, you will only be taking one step forward and seven steps backwards. When inflation is hitting, it’s affecting all aspects of your spending life, from food, to shelter to transportation to healthcare etc. This means that if you used to spend 12% of your monthly salary on transportation, when inflation hits, depending on the rate, you might end up spending 20% of your salary on transportation. Even if your salary gets a raise, it’s just going to give you a temporary momentary relief. After sometime, it’s back to to the rat race and the inflation effect.
With the rate of inflation in my country, even an average standard of living is currently expensive. Even earning in a foreign currency will put you steps ahead but will not completely save you from inflation. There can only be an increase in income that makes the inflation effect a little on your side compared to others earning in the native currency, but still, you are going to feel the wrath of inflation.
Will crypto save us from inflation? In as much as I believe in crypto and trust in crypto being the future and giving us the financial freedom we seek, I still can’t understand or believe that crypto can stop inflation in the world.
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