In an analytical article Vladimir Okhotnikov, a crypto enthusiast and supporter of decentralization, talks about the era of the dollar. There he discusses the problems of fiat currency depreciation and reveals to the reader the benefits of investing in alternative assets..
VLADIMIR OKHOTNIKOV ABOUT INFLATION AS A TOOL OF CENTRAL BANKS
Talking about the problem of preserving funds, Vladimir points out the main reason why central banks allow strong inflation. The author sees a reason in the combination of excessive issuance of paper cash and new cash flows that end up in the pockets of the super-rich:
“The Central Bank decides who to give and who to take from. But everything is arranged in such a way that the money first of all goes into the pockets of the beneficiaries.”
In the article, it is the market for luxury goods and services that pushes prices up. The author proves with words that the rich get richer and the poor get poorer.
ABOUT THE DOLLAR DECLINE
Vladimir is skeptical about the prospects for the dollar. According to the above facts, the key problem of any fiat is the lack of real security of the money supply with goods and services. After all, the central bank of any country can print as much money as it wants, but this does not mean that everyone will become rich.
A good alternative to fiat money can be precious metals, the amount of which is outside the power of central banks. For example, the main suppliers of gold are mining companies. The article conveys to the reader the idea of the power of the “yellow metal” during inflationary surges.
Beyond gold, Vladimir points to the revolutionary importance of the emergence of decentralized finance (DeFi), in particular Bitcoin. He considers the fact that Tesla, unexpectedly for many, invested in “digital gold” and announced that it accepts coins as a means of payment for its electric cars to be an important indicator of future global processes.
“It’s no secret that the risks associated with money circulation are increasing many times over. The need to exchange the dollar for other currencies as part of international transactions creates additional difficulties,” the author of the article quotes Musk.
Using the example of the Tesla CEO actions, Vladimir demonstrates, on the one hand, the vulnerability of the dollar as an international means of payment. On the other hand, the author thereby shows that cryptocurrencies have every chance of becoming an excellent means of hedging risks in the portfolio of any investor. Read about this and much more in the original version of the article: “Who steals money from the buyer.”
ABOUT AUTHOR
Vladimir Okhotnikov appears as an opponent of centralized finance. He believes that the DeFi sector, if it does not outgrow the traditional monetary system, will equal it. Vladimir regularly issues analysis covering similar topics. His keen eye on what is happening around the banking sector inspires many supporters.
