Inflation is becoming more and more relevant to the current global conditions, as the world is going into a recession which many believe to be the deepest since World War II. The inflation impact on us is devaluing our holdings, giving us less purchasing power on our money.
An example of inflation is that in 1913, a single dollar had the same purchasing power that $27.58 has today. Nowadays, the United States Federal Reserve and other central banks throughout the world have been engaging in quantitative easing and other economic policies that increase banks’ liquidity, but risk increasing inflation.
Measures have been taken by the central bank through purchases of long-term securities from the market to increase the money supply. The goal was to lower inflation through incentivization on lending and investment activities, and deprioritization on savings and prudence.
Purchases of over $80 billion worth of treasures and $40 billion worth of mortgage-backed securities were made each month by the Federal Reserve in the summer of 2020. The balance sheet indicated passing through the $8 trillion mark.
The solution to these problems is a different type of currency, one that rewards prudent moves such as saving and ensures people’s purchasing power doesn’t vanish over time. Inflation Hedging Coin (IHC) is one of these currencies. It is also one of the most hyped projects receiving widespread support — evidence is that the IHC managed to raise $10 Million USD in under 30 seconds.