Is my family’s financial future secure? This is a common question that troubles the world at large.
Everything we do today lays the groundwork for what will happen tomorrow. We spend years chasing wealth and amassing fortunes only to ensure a secure future for ourselves and our families. However, only a handful are able to preserve or build their wealth over time.
Why is the situation like this? It has nothing to do with the lack of savings on the part of individuals. This is due to the ineffectiveness of the methods of the people to preserve their wealth. As economics progressed, we faced the beast known as unrestrained inflation. This is what I call the ‘money killer’ and that is why our savings get depleted. This is a cost that all of us will have to bear as a result of the current economic structure.
To get a grim sense of where we are in a better position, check out this image below. It compares that in 2016 to the value of ₹ 1 lakh in 1984, a span of only three decades, or the professional life of an average person.
Source: economic times
The results are downright shocking. Someone who was a millionaire in 1984 would probably cost less than the smartphone you are holding now.
The rise of safe haven assets
When we faced the problem of inflation we popularized investments and made a market out of them. Instead of just holding cash, we thought, why not invest in assets that increase in value over time. This prompted the creation of safe-haven asset classes such as gold and silver. The underlying premise was that because these assets were considered limited in nature. We will eventually eliminate them, which means that their value will increase as supply declines over time.
See how gold and silver prices have risen over the past century.
Gold prices last 100 years. Source: macrotrends
Silver prices last 100 years. Source: macrotrends
What’s the problem with metal?
By now, you’re probably wondering how well gold and other precious metals have performed in the past and will continue to do so in the future, considering why even bother to repair what isn’t broken yet.
To be honest, you could be wrong here. We often overlook the most basic reality that things change when better options are available. Once upon a time, a wise man said that the Stone Age ended not because we didn’t have stones, but because we discovered metals that were much more effective in every aspect. The value of precious metals as an investment is not decreasing; Rather, we are doing something better.
There are two things that our history clearly demonstrates. One, nothing is permanent, and second, innovation never stops. With the advancement of technology, a wide range of new variables were brought into play, including the environmental impacts of reliance on non-renewable resources.
And, just as the world moved from horses to vehicles, so did the investment sector. The growing need for efficient economic and investment tools led to the emergence of cryptocurrencies in response.
future of money
In the transition to a digital world, people have recognized that fiat currency is no longer an effective means of money exchange and that precious metals are not permanent assets. Cryptocurrencies have a unique position in the market because they provide answers for both the investment and money exchange aspects of the problem.
The popularity of cryptocurrencies is increasing every day as more and more people and organizations start accepting them. Consider the figure below, which shows that gold has declined in value in contrast to bitcoin, the leading cryptocurrency, often referred to as digital gold.
Source: long term trends
The ratio in the graphic above divides the price of bitcoin by the price of gold and indicates how many ounces of gold are needed to buy one bitcoin. When the ratio increases, bitcoin outperforms gold; When the ratio decreases, gold outperforms bitcoin. The flagship cryptocurrency has outperformed gold and made up almost all publicly traded traditional assets.
It is simply the largest cryptocurrency; There are many others, each of which performs a unique function. The ability to program even the most fundamental features of cryptocurrency and fine-tune them to our specifications is one of the primary selling factors that facilitate the transition from inefficient traditional assets.
Using cryptocurrencies, you can monitor inflation rates, aggregate supply, total circulating supply, and more. So at this point, you must question whether your financial future is secure with the current system. Can you trust this? A system that has failed many times before?
From the point of view of the average investor, the influx of institutional capital, which is generally much more informed than retail investors, should be more than enough an opportunity to buy cryptocurrencies like bitcoin and ethereum at rock-bottom prices over the past few years. One reason to switch to cryptocurrencies.
Additionally, the industry is constantly evolving, with new areas emerging regularly. The cryptocurrency business is only a little over a decade old and is still in its infancy. However, within this brief period, the crypto industry has been successful in establishing new markets such as decentralized finance and the NFT market.
Within this short period, the industry has already developed solutions that do not rely on energy-intensive technologies. The sector has figured out how to automate the entire economic system and make transactions seamless. Santander estimates that the use of cryptocurrencies and the underlying blockchain technology could result in annual cost savings of up to $20 billion by 2022.
Banks have also started using cryptocurrencies. This would have been unthinkable just a few years ago. Major financial institutions such as JPMorgan and CITI have jumped on board the cryptocurrency bandwagon.
One thing is certain: Cryptocurrency and blockchain technology will eventually replace traditional systems, such as the internal combustion engine, already being replaced by more economical and efficient integrated circuits.
What better way to celebrate the occasion of Raksha Bandhan, symbolizing the protective bond between brother and sister, than by gifting our siblings some cryptocurrencies to help secure their future?
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