The world has many economic struggles, and one that continues to worsen is Venezuela’s hyperinflation problem. Over the past decade, their inflation rate has skyrocketed to the point where items like toilet paper and flour are practically impossible to come by. This makes it nearly impossible to run an effective business in this country as you can’t predict your costs from one month to the next or even today. So what’s the solution? Investing in cryptocurrencies like Bitcoin may very well be the answer to a hyper-inflationary economy! Inflationary economies erode the value of saved money and slow down the economy. This causes citizens to prioritize spending over saving, decreasing their savings account value. As a result, people often seek to hedge against inflation by investing in assets like gold in such a situation. While gold has long been a popular choice, crypto has been gaining in popularity in recent years. Bitcoin as an Inflation Hedge It may seem hard to believe, but recent reports show that the annual inflation rate in the U.S. topped 8.5%. In other parts of the world, annual inflation rates are skyrocketing. Some economists worry that this bout of inflation will last and permanently damage the global economy. If this scenario continues, Bitcoin may be an inflation hedge. Indeed, JPMorgan Chase has reported on institutional investors buying bitcoin as an inflation hedge compared to gold. While Bitcoin isn’t the best...
