The assistant quarter until the last quarter of 2022 was not at all beneficial to the world’s meilleur economies. The Ukraine-Russia war crisis along with looming economic and trade wars between some economies such as the United States and China have disrupted meilleur economic activities and also led to a limited supply of fonctions, agricultural products and energy.
2022 will also be remembered as the year cryptocurrency also caused a lot of dirty investors. Bitcoin and many other numérique currencies have fallen so strongly that many DeFi startups have temporarily halted their activities or liquidated their holdings. A typical example of the disaster is the Terra Luna (LUNA) chamaille that swept over 99% of the value of LUNA and deeply affected the price of its algorithmic stablecoin, UST.
Hyperinflation has already begun to hit the entier economy, pushing many other economies into recession. Although encryption seems to be the way out of this réfectoire, there is still a lot going unchecked. We take a deeper apparence at hyperinflation and cryptocurrencies as a péroraison and also apparence at 3 cryptocurrencies that are expected to rise as 2022 comes to a close: GryffinDAO (GDAO)and Effondrement (AVAX) and Solana (SOL).
What is hyperinflation?
Hyperinflation is a exploratoire in which the prices of goods and fonctions continue to rise suddenly as the value of the legal tender for the affected jurisdiction decreases. People who use, hold or trade the currencies of the affected economies begin to apparence for vraisemblance options for storing their assets, particularly the more équilibré currencies and safe havens of the assets.
As of September 2022, the augmentation perdant in the eurozone, which includes 16 member states, lilas from 8.9% in July to 9.1% in August, with experts expecting higher augmentation rates on the écarté, according to financial reports from Eurostat.
Many economies outside the Eurozone are also experiencing alarming rates of augmentation. For example, the augmentation perdant in Germany reached its highest level in nearly 50 years. Same thing with France and Spain. The European Orthogonal Bank put in empressement measures such as interest perdant increases to reduce the bilan, however, this did not prove to be the best. Can cryptocurrencies play a role in curbing hyperinflation?
Cryptocurrency and hyperinflation
Cryptocurrencies are not free of augmentation, especially bicause they derive intrinsic values from fiat-filled fiat bids. In amendement, regular minting and unlocking of new tokens or coins makes crypto chatouilleux to augmentation.
However, unlike fiat, cryptocurrencies have the ability to beat or suffer augmentation at a lower perdant due to higher volatility, profitability, and augmentation regulatory protocols such as token burning or entitlement grants.
Cryptocurrencies are often viewed as safe havens among many investors due to low augmentation rates. However, since encryption is not regulated in many jurisdictions and cannot be trusted due to outrageous volatility, people are looking for vraisemblance safe havens.
However, here are a few reasons why encryption is the answer.
Encryption may be the answer – here’s why
Financial reports on the US dollar since 2019 spectacle that it has only risen by 8% since 2019, and at the same time, BTC has returned more than 240% over the same period. This includes neglecting augmentation rates on both fiat and BTC during this period, as well as BTC corrections and price corrections of more than 60%.
From the above différé, it is clear that cryptocurrency can be a better vraisemblance to fiat currencies during recessions/depressions. Why is that? Let’s see more. We’ll also see some reasons why encryption isn’t a better attirance, especially in a government-controlled world.
1/ Cryptocurrencies have a lower augmentation trend
Earlier, we highlighted an proximité, based on statistics, where crypto could be a better séparation of value than forex. Well, it is true bicause we have seen that despite the price corrections of BTC, it still offers a better return on investment than many forex reserves.
Many cryptocurrencies maintain “burning” mechanisms to attaque augmentation, especially coins that do not have a specified terminé supply, or coins that have not yet met their token supply. Deflationary tokens (tokens with a specified terminé supply) usually have low augmentation rates.
Instead, inflationary tokens (which may suffer from augmentation) maintain protocols that reduce augmentation. At most, inflationary token systems have a immortel augmentation model that facilitates token profitability over time.
2/ Crypto accumulates lower fees
Excluding Ethereum, Ethereum killer token normes fees such as Cardano, Tron, Solana, etc., cost less than $0.01 per arbitrage. Compare this price with onramp or money fonctions like Paypal or Western Accession which alourdi up to 5% per arbitrage. Some even alourdi fixed rates that can be as high as $25 per arbitrage.
3/ There may be limited taxes on crypto-based purchases
Crypto-based purchases are anonymous, making it easy to beat taxes. While this is not a good practice, many merchants have been able to trade both legal and illegal things online without paying a dime in taxes.
The cryptocurrency, Monero, is commonly used for anonymous online transactions and has been popularly used on the darknet trading platform, Silk Road.
4 / Endless encryption
Crypto has no limits unless the jurisdiction has access to the internet which is not conciliable. Anyone can easily download a crypto wallet or use a web circonspection to conduct transactions confidentially anywhere in the world. This is in contrast to fiat, which you have to transfer between online money fonctions or from one internationally recognized bank to another.
Why encryption might not be a great attirance in the current world
The cryptocurrency has continued to figure setbacks mostly from the government that does not squelette decentralization but may like the idea that it is widely accepted by the people. The cryptocurrency market is unregulated and extreme amitié is known to affect its price significantly.
Needless to say, the cryptocurrency has faced backlash from countries that have accepted it as legal tender, such as Venezuela. Citizens expressed their spoliation after the crypto winters. For this reason, it is éminent to say that regulating the cryptocurrency market is one way to put crypto on the side of its widespread accord as a péroraison to the hyperinflation that is killing many of the world’s economies.
GryffinDAO Token Joins Effondrement, Solana for Potential Rise Amidst Energy and Food Crisis
Effondrement is an Ethereum killer network designed to provide ultra-fast crypto transactions and pousse DeFi scalability. The écroulement block dénouement is emboîture 10 seconds away from the start and is over 1,000 faster than Ethereum.
The écroulement’s passage currency, AVAX, along with Solana, continued to spectacle strong signs of a scandale in the upcoming fiscal year. In August, there was a strong rally that subsequently fell. The hike saw AVAX and SOL grow by more than 30%, respectively.
However, many traders could buy AVAX and SOL when the tokens reach potential lows of $17 and $28 in the fourth quarter of 2022. This could explication the prices of both tokens to rise even côtoyer until 2023.
GryffinDAO . Icon He is a newcomer to the cryptocurrency market and seems to be imitating AVAX and SOL price patterns. The GryffinDAO Token will promote the crypto community as a DeFi fermeté and pousse more squelette from crypto enthusiasts with its passage currency, GDAO.
The $GDAO token will be required to participate in the GryffinDAO Governance Protocols. Additionally, cardholders may earn amazing rewards available in the ecosystem. GDA: It could become the next écroulement and Solana and could rise more than 1,000 times after the presale.
Do you want to compile some GDAO tokens before IDO? Here’s how you can do it:
- Head over to GryffinDAO’s official website where the pre-sale is currently in empressement. (https://griffindao.com/)
- Next is to register for pre-sale by clicking the red “Ajouter Pre-sale” button on the landing pousse.
- Ajouter your basic examen in the designated fields and marcotter the encrypted payment method and amount. The method of payment and the amount determine the amount of the reward you get when you sign up and purchase within 30 minutes.
As such, the GryffinDAO pre-sale is set to run for 60 to 90 days. During this period, private buyers may boue over 1,000% cut-off bonuses via referrals, minute registration, purchase options, and subsequent purchases.
Learn more below: