Are you saving money? Do you save on everything you can? Did you want to buy a car but were surprised to find out that while you were limiting yourself, it became more expensive? You may say that you had $100,000 and still have it. Then how come that just yesterday I could afford a two-room apartment for this amount but now I can’t buy even one room? Vladimir Okhotnikov will tell you when fiat will go to zero, and cryptocurrency, gold, and silver will finally gain value.
Vladimir Okhotnikov is not just a crypto enthusiast, but an outstanding expert in cryptocurrencies. His business history began through a struggle with traditional finance, and his story will serve as an inspiration to many.
He was one of those who was the first to see the limitations and problems of the banking system. He noticed how inflation gradually depreciates our savings, and how centralized financial institutions control and manage other people’s funds. These shortcomings prompted Vladimir to explore alternative instruments.
Game of money. Vladimir Okhotnikov on a complex combination of strategies
Have you noticed how things and services have become more expensive lately? For the same money you can buy less and less, although more and more dollars appear in circulation. One might ask – how is this possible?
Vladimir Okhotnikov shared his view of the situation, “Let’s imagine that our economy is a big village where each person has his or her own chest in which money is kept.
In this village, there is a special person who plays the role of village chief. The chief is very important because this person has a special chest in which he or she keeps special money. It is called the central bank.
And so, the central bank decides when and how much currency should be distributed to all other residents. Sometimes it adds and sometimes removes some of the currency from circulation. However, lately, it has been constantly busy distributing money to those who want it uncontrollably.
The currency is distributed throughout the village and everyone receives a little of it. But there’s a catch: the money isn’t distributed evenly. It first falls into the hands of those who are closer to the central bank and have bigger chests. And only then it flows to the others.”
Then why is there a depreciation, because in the end there was more money?
“It’s very simple – those who have more currency buy goods in the village and use services more often. Accordingly, demand begins to grow, and prices follow it.
At this time, other residents who are not so lucky are now forced to buy at new prices. Although their earnings remained the same, now most are unable to buy the same amount of goods and services.
This is a paradox – you have more money but you buy less,” summed up Vladimir Okhotnikov.
Vladimir Okhotnikov about the real value of money
Let’s imagine that money and currency are like trees in a forest. There are varieties that always remain green and do not lose their value. Such trees represent real money in the form of gold and silver. They always remain valuable and stable.
On the other hand, there are trees whose leaves fall down over time and lose their value. They symbolize a currency that is gradually losing purchasing power due to inflation.
And then there is inflation — the wind that blows leaves off the trees. It affects your ability to buy what you need. Therefore, many people think about how to preserve their capital so that it does not decrease over time.
Vladimir Okhotnikov about rolled out dough and greedy fingers
Inflation provokes a gradual rise in prices, and you already understand this. This occurs when the government or central bank starts issuing more fiat money. But why does this happen?
The key concept here is “fiat money”. This is money that is not backed by anything real. Instead, the central bank can simply print as many currencies as needed.
But it’s important to understand that this new money is not distributed evenly. They first appear in the hands of the wealthy and financial institutions. Therefore, you may not notice rising inflation in the prices of common goods and services.
Even though food prices remain relatively low, the rich continue to experience increased capital gains from new money while the middle class and poor face diminishing purchasing power.
Note that gold always rose in price when the US dollar lost value. This happened for the first time after the abandonment of the gold standard, and it happened again, causing gold to reach its highest value during the inflationary recession and credit downgrade crisis in the United States.
Recently, Tesla made a move that shocked the financial world: the company invested in bitcoins and began accepting them as payment for its cars. The company announced that it is considering alternative assets as a hedge against rising currency risks in the market.
Elon Musk also shared information that his company has suffered from the depreciation of the dollar. He said, “It is no secret that we operate businesses on multiple continents and are therefore exposed to foreign exchange risks associated with our revenues, expenses, and debt in multiple currencies other than the US dollar.”
Interestingly, Tesla was one of the first major companies to accept crypto as a means of payment for goods to protect against currency risks in the future.
It is important to understand that money is not constant and does not maintain purchasing power over time. Therefore, cryptocurrency has become a kind of lifeline for many who suffered from the global economic crisis in 2008. Therefore, the sooner everyone understands the real value of decentralization, the better it will be for their own budget.
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