We found a video made by one of the most famous reporters in the market, Peter McCormack, who has been documenting since 2018 many of the news from Latin American countries and if situation with the biggest problem they are having, inflation, to be more specific.
First of all, we recognize that the video was not created by us. We are simply taking it to generate a debate on how this problem can be improved with the initiative of governments to accept cryptocurrencies as an alternative form of product exchange.
In the end, money is that: a means of exchange, as many of the economic theory?
What is Inflation?
But exactly what is inflation: that term occurs when governments print more money than they can to suppress the demand of the economy forced by the need for marginalized trucks between products.
That is not a problem. It is recognized that money at the end of the day is an invention to facilitate the trucks. The big problem exists when: the more money printed, the more internal debt is generated.
With more debt, unfortunately the crazy currency begins a devaluation process and with the latter happens what we are living today. “Yes, the offers are no longer offers, a high paid value is.
“Exactly! We are paying with more what we should pay with less. For the above fact, we are basically complaining that in recent days things are more expensive than before.
Crypto Deflation Or Defiance
So what is the solution to inflation? The answer is “deflation” or how they want to describe the movement they are documenting, “Defiance.”
Deflating money means “limiting the number of impressions and with due audit.” And this is where cryptocurrencies have been winning the battle.
As a clear example, and as explained in the video, Bitcoin, the trend of it, is that it is a digital asset that points to the latter concept.
From the beginning of the creation of Bitcoin, and as we learned in our lessons for Dummines, Satochi Nakamoto thought of it as a deflationary asset over time. But to understand this, it becomes important to remember the fact that only 21 million Bitcoin could be mined.
Based on the foregoing, then, the theory is recognized that the day that governments begin to implement the Blockchain Technology, and begin to create their state cryptocurrency, inflation decreases over time. Inflation here then is “have the control”.
Another Things
We have not forgotten the year 2017, to leave a clear example of why deflation is the way to go. Many fans of the cryptocurrency market will remember the fact that more Tethers were printed than could be cooked in a boiler.
That fact only generated chaos and panic to the market. Therefore, unfortunately the way to print more than you can, is not democracy in the end.
The video then represents a call to central governments to take better measures and join the initiative of China to start creating state currencies as active crypto and not as the role of the wind.
To see what it is like to think with your head in a hole: only in Colombia were the design of the bills changed more than 3 times and many of the coins (metal) were reduced by half. Curious, do not believe it, you do?
Clear Examples
In Venezuela the situation is about total devaluation of the national currency. But in Brazil it is much worse: the government thinks that by creating a tax system similar to that of the single states, the problem of inflation would be at its ends. But it’s not like that. Tax only generates marginality and less consequence to have purchasing power.
From own experience, in this country an average person to live really well must have a minimum salary of approximately USD $500, where this last amount, and in the United States, is an expense in a simple exit to a disco.
So, the question is: Should the economic system be conservative or does it need to be renewed to a more just and globalized economy? We want to know your opinion.
To do this, write it in the comments and let’s join together in this important debate to place cryptocurrencies as a main factor to eradicate once and for all the problem of inflation.
See you in the next story and opinion! With love 💛 Rubika Ventures Team!
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