Inflation is a term that has been in the headlines a lot lately due to the risk it poses to the economy. When a nation’s currency suffers from inflation, the citizens are the real victims. Regular people that worked their lives to save can lose their holdings in years. Understanding inflation and what causes it can help you to become a more efficient saver and trader. It can also help you to better understand ways to avoid it.
What is Inflation?
The battle against inflation has kicked up a notch due to a combination of factors. Inflation is a loss of buying power in a currency. It means that you will pay more for everything. You can see examples of inflation currently when you exit your home. Gas is a perfect example of inflation.
The price of gas and other basic needs are the highest they have been in a long time due to inflation. Unfortunately, this means that people who live on a set income may now find that they are unable to afford the items they used to. Inflation is a serious issue that robs savers of their future.
Stopping inflation should be priority one for anyone seeking true wealth. Luckily, many people in the blockchain community feel the same way. As such, they have come up with innovative and out-of-the-box methods to prevent or block inflation. Let’s take a look at the causes of inflation to better grasp how networks like META 1 eliminate inflation from the equation.
Scary Inflation Statistics
What’s amazing is just how much value the US dollar has lost. The buying power of the dollar is down around 30% in the food markets. Specifically, food has increased by 9% year after year. Inflation is even more obvious when discussing gas. The Bureau of Labor Statistics (BLS) shows gasoline rose 48%, and energy prices are up 32% over the last year.
Reports revealed that inflation levels have hit that of January 1982. Specifically, the US inflation rate rose 7.9% in Q1 2022. Worst of all, inflation affects low-income homes most. As such, people from all walks of life continue to seek out remedies to this fiscal ailment. One such solution is the META 1 Coin.
How META 1 Coin Combats Inflation
The META 1 Coin tackles inflation at its core. Unlike its competition, META 1 Coin isn't pegged to fiat currency. The most popular stablecoins such as Tether are subject to the same inflation as fiat currencies due to their technical structure. The META 1 coin derives value from a basket of gold-related assets which provides the coin with self-appreciation.
Gold has proven to be an appreciating asset over time and as it does, the value of META 1 Coin increases accordingly. Additionally, the developers have integrated some other features that make META 1 Coin the most inflation-resistant option in the market today. For one, the coin has a capped total supply and planned issuance.
Value Locking Mechanisms
Another way in which META 1 Coin prevents sudden losses in value is through its asset value locking mechanisms. The network leverages off-chain sensors called oracles to monitor the asset value of META 1 Coin versus the current trades. The protocol ensures that all META 1 Coins sell for asset value or higher. This strategy prevents whales from conducting pump-and-dumps which lower token values.
You Can't Save an Asset that Doesn’t Stop Inflation
If you want to successfully build wealth, you need to avoid inflation at all costs. Currently, anyone who has their savings in fiat currency is losing as the 0.03% paid out by your bank account hardly covers the cost of inflation. A better solution is to leverage advanced next-gen protocols like META 1 to create savings via low-risk blockchain-based methods.