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RE: How do you see crypto with the present inflation?

in LeoFinance2 years ago (edited)

Welcome back, Achim!

Regarding the rising prices... I'm quite at peace with that. I actually lived worse when communism fell in our country. Of course, I was very young then, but I remember my parents buying 'stuff' that could retain some value because hyperinflation was driving our national currency to the ground. Maybe Turkey is not that far from that experience with their national currency. The difference is now the whole world economy is affected, and there are no safe fiat currencies. Maybe the USD.

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In my opinion there is no safe currency. The USD is only stronger because the interest rates are higher than for the Euro other other currencies. In order to avoid importing inflations, it's possible that the different central banks will increase interest rates so that the currency appreciates in respect to others. Such a race would have a lot of losers, like exporting businesses... At the moment it's pretty difficult to predict how things will evolve.

I believe that's why ECB doesn't want to make the EUR stronger. To avoid affecting exporters from the EU as well.

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