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Can The Crypto Ethereum Hedge Against Inflation? (Inflation Rate Highest In 40 Years)
Confounded Interest ^ | 12/31/2021 | Anthony B. Sanders

Posted on 12/31/2021 8:48:33 AM PST by Browns Ultra Fan

Inflation is the highest in 40 years. There used to be a lot of discussion about hedging against inflation in the 1970s and 1980s, but discussion subsided as inflation cooled in the US. But now it is roaring back as Fed monetary stimulus continues unabated and The Federal government continues to spends like crazy.

So, how do we protect ourselves against inflation caused by Federal government policies (or follicies)? How about cryptocurrencies like Ethereum?

Ethereum really started to take off as US inflation took off. Not a perfect fit (or hedge), but on average Ethereum has kept up with inflation.

If you believe in technical analysis, Ethereum is in the 3rd wave on the downside.

But if you believe the Ichimoku Cloud, Ethereum lies BELOW the cloud indicating that Ethereum is likely to rise.

Bear in mind that Biden’s energy policies have created large increases in energy prices which lead to large increases in other products such as food prices. Again, not all inflation is due to Federal policies. Arabica coffee prices are driven by droughts and excessive rainfall, etc. But inflation causes a rise in agriculture prices due to transportation cost increases, increases in fertilizer prices (thank to natural gas price increases), and panic buying by consumers.

Despite what Federal officials jawbone about, inflation has momentum and is unlikely to swiftly subside, particularly if the Build Back (Inflation) Better Act passes in 2022.

Remember, consumer purchasing power of the US Dollar has declined dramatically since the creation of The Federal Reserve System in 1913. The Fed isn’t going away and neither is wasteful Federal spending, like BBB.

Protect yourself! Or at least Treat Yo Self!

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Government; Politics
KEYWORDS: cryptocurrency; ethereum; hedge; inflation
Watch Romney try to push the hyperinflationary Build Back (Inflation) Better Act across the finish line.
1 posted on 12/31/2021 8:48:33 AM PST by Browns Ultra Fan
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To: Browns Ultra Fan

Brace yourselves for 15% to 50% inflation as the economy adjusts and digests the massive amount of fiat dollars that the Fed crapped out in the past 18 months.


2 posted on 12/31/2021 8:57:06 AM PST by MercyFlush (DANGER: You are being conditioned to view your freedom as selfish)
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To: Browns Ultra Fan

Yes.


3 posted on 12/31/2021 9:05:53 AM PST by BusterDog
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To: Browns Ultra Fan

Ethereum is the only crypto I own.

Stock market set 68 record highs this year after 12 months of imminent crash predictions (again). Next year looks more difficult so I have moved from pretty conservative to more conservative. The possible relief rally over Omicron could be hot, but I’ll still benefit, and don’t need to take on much stock risk at my age.

Heavy in preferred stocks and high dividend energy.

I am looking at rural land, it still looks reasonable in my area.


4 posted on 12/31/2021 9:09:52 AM PST by SaxxonWoods
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To: Browns Ultra Fan

I would bet on Bitcoin being the better hedge. Eth appears to have more immediate upside but lacks the set in stone scarcity offered by Bitcoin.


5 posted on 12/31/2021 9:10:05 AM PST by precisionshootist
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To: Browns Ultra Fan

Mittens would jump at the opportunity to “reach across the aisle.” And it would’ve already happened if Brandon had 48 or 49 other votes.


6 posted on 12/31/2021 9:10:50 AM PST by RKBA Democrat (Cultural separation and divorce. Not partisan politics.)
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To: MercyFlush

“Brace yourselves for 15% to 50% inflation as the economy adjusts and digests the massive amount of fiat dollars that the Fed crapped out in the past 18 months.”

Wrong, and hopefully this writer will soon figure out everyone knows there is inflation, the question is how to best take advantage of it or survive it depending on one’s situation, age, etc.


7 posted on 12/31/2021 9:12:36 AM PST by SaxxonWoods
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To: Browns Ultra Fan

Things like Bit Coin, Tesla stock, and all Chinese stocks simply don’t behave like reality. As one of the big investors said, (approximatly) “I don’t (buy puts) bet against these crazy stocks like Tesla because they don’t act like any other company where the actual value of the company is reflected in the value of the stock. These are fantasy prices, and the price defies logic.” He went on to describe what he called “the everything bubble.” The fact that the governments of the world are literally dumping money on banks is causing the banks to invest the money in stocks. Inflation is largely taking place in the stock market and is only slightly reflected in the market where people buy products.

There’s an electric car company called something like Vivian that has never produced a car. Its stock price makes it one of the most valuable companies on Earth. Total bubble. There is no place where you can safely protect your currency from inflation.


8 posted on 12/31/2021 9:15:30 AM PST by Gen.Blather (Wait! I said that out loud?)
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To: SaxxonWoods

Did Ethereum 2.0 ever come out?


9 posted on 12/31/2021 9:16:39 AM PST by Pollard (PureBlood -- youtube.com/watch?v=VXm0fkDituE)
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To: Pollard

“Did Ethereum 2.0 ever come out?”

Sep 17, 2021 · There is not a hard and fast Ethereum 2.0 launch date. The transition to Ethereum 2.0 has already begun, with the introduction of the Beacon Chain occurring in December 2020. The next phase will be “the merge,” followed by “sharding,” an


10 posted on 12/31/2021 9:26:55 AM PST by SaxxonWoods
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To: SaxxonWoods

Ethereum is the only crypto I own.
————-
Digital will die overnight when the US instates it’s own sovereign cashless called Fedcoin. It is in committee, closed doors. The US will never allow private crypto competition when the US will have our own sovereign cashless system in place. Many legendary financial greats have sounded the alarm. Read up on senate Bill 3571, good luck.


11 posted on 12/31/2021 9:37:08 AM PST by delta7
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To: SaxxonWoods

https://www.algorand.com/


12 posted on 12/31/2021 9:38:26 AM PST by Pollard (PureBlood -- youtube.com/watch?v=VXm0fkDituE)
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To: SaxxonWoods
Ethereum is the only crypto I own.

I'll admit, I understand Bitcoin, but I don't understand Ether.

13 posted on 12/31/2021 9:43:31 AM PST by Right_Wing_Madman
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To: Browns Ultra Fan

Etherium is a system. I know it’s a crypto unit…but it’s the basis for a lot of other cryptos. It is not Bitcoin.

Before you spend money on this or any other asset, people need to understand what it does. And then understand why you might want to own it.


14 posted on 12/31/2021 9:45:06 AM PST by Vermont Lt
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To: delta7

Yes, people will rush to Fed coin. And they will welcome all of the wonderful aspects of it. Until the IRS sends one of their new agents to your door asking what that $6,000 transaction was on the 5th. And, they decide to shut down your ability to spend it. Or they decide to devalue it.

Yes, Fed coin will be pushed hard. It will fizzle out very quickly.


15 posted on 12/31/2021 9:48:40 AM PST by Vermont Lt
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To: Gen.Blather

“The fact that the governments of the world are literally dumping money on banks is causing the banks to invest the money in stocks. Inflation is largely taking place in the stock market and is only slightly reflected in the market where people buy products.”

this is what ALWAYS happens when the economy is awash with massive amounts of brand new fiat dollars whipped out of thin air by kommie magic wands ... these magic dollars gotta go somewhere and the opportunities for productive investment like new factories are exceptionally limited when communists are in charge of the economy, so they get dumped into securities and even iffier magic “investments” like tulip bulbs, sardines and KryptoKrap, resulting in an upward price spiral of non-real things, at least for a while ...


16 posted on 12/31/2021 10:40:52 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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