El Salvador Going to Bitcoin
El Salvadors experiment to legitimize the use of bitcoin will be a first for cryptocurrencies as the revolution in crypto continues to shake economics with uncharted territory. I believe this may be bad for the US dollar as more countries follow in El Salvadors lead it may lead to an exodus of the US Dollar as the worlds reserve currency.
Currently, the United States dollar is the worlds reserve currency but if this falls and everyone starts to ditch dollars this will be very bad for inflation here in the United States. Inflation is already taking off at high rates and Deutsche Bank has issued a warning for the coming inflation. If many countries follow El Salvadors lead in using cryptocurrencies instead of the US Dollar as a hedge against loss of value for their money, they would mean that inflation will be even worse than predicted.
Analysis and Precaution
The author of this article is not a financial advisor, for advice, please seek out a qualified financial advisor. That being said in case of inflation there are a few hedges against a wave of inflation that one can take should inflation take off.
There are assets which may hedge against inflation such as real estate, gold, cryptocurrencies or other hard assets.
