Tools and Practices for Inflation Down
Print Less Money
Encourage People and Institutions (inc. Government Spending) to Save Rather than Spend
Raise Interest Rates on Loans and Savings Account
Raise Taxes
Bring Down Costs of Basic Goods (Real-Estate, Healthcare, Education, Food, Supply Chain Companies)
Why This Isn’t Likely to Happen in the Near Future
The Fed has printed historical amounts of money in order to pay for COVID related expenses, stimulus checks, and government procurement contracts. (After-effects of these spending habits are still unknown.)
Government spending is at an all-time high. (Highest now, lowest in the 1970s.)
The Fed has publicly stated that no action will be taken, first meeting in Aug 2021, action taken at 2023 at earliest.
Politically unpopular.
Politically unpopular because certain asset classes stand to gain from high inflation. (e.g. real-estate)
Likely Outcomes For the Crypto Industry
Both on micro and macro levels, high inflation usually coincides with high cryptocurrency adoption rates. (Venezuela, Nigeria, Argentina, etc.)
People “exiting” the US Dollar lowers demand for fiat while increasing demand for crypto - a win-win for some.
Print Less Money
Encourage People and Institutions (inc. Government Spending) to Save Rather than Spend
Raise Interest Rates on Loans and Savings Account
Raise Taxes
Bring Down Costs of Basic Goods (Real-Estate, Healthcare, Education, Food, Supply Chain Companies)
Why This Isn’t Likely to Happen in the Near Future
The Fed has printed historical amounts of money in order to pay for COVID related expenses, stimulus checks, and government procurement contracts. (After-effects of these spending habits are still unknown.)
Government spending is at an all-time high. (Highest now, lowest in the 1970s.)
The Fed has publicly stated that no action will be taken, first meeting in Aug 2021, action taken at 2023 at earliest.
Politically unpopular.
Politically unpopular because certain asset classes stand to gain from high inflation. (e.g. real-estate)
Likely Outcomes For the Crypto Industry
Both on micro and macro levels, high inflation usually coincides with high cryptocurrency adoption rates. (Venezuela, Nigeria, Argentina, etc.)
People “exiting” the US Dollar lowers demand for fiat while increasing demand for crypto - a win-win for some.
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