For a couple of years with very low interest rates worldwide, emerging countries took up a lot of dept to develop their own economies. With interest rates rising for USD, investors leave the emerging countries to invest back in Dollars. This leads to a devaluation of the currencies of those countries. This effect is only increased by the trade warfare lead by the US.

What are the effects on Crypto?

Countries like Turkey, Argentina, South Africa, India or even Iran are facing a huge challenge with their currencies devaluation. The devaluation leads to inflation and there are only a few tools to fight it.

• Increase interest rates but this slows the economy
• Sell hard currencies or gold to stabilize the local currency but this invites hedge funds to fight against them
• Control over foreign currencies. Meaning that people of these countries are not free to buy foreign currencies anymore.

Let's say you live in an emerging country and you want to secure your savings. Every day your money looses value but you are not allowed to buy foreign currencies like Euro, USD or CHF. What do you do?

Buy Crypto Currencies might be the answer

Just to keep your savings from devaluation, the only answer could be to put some of your savings into Crypto Currencies which have huge advantages:

• They are certainly volatile but compared to the local currencies much more stable.
• They can easily be exchanged into local currencies to buy everyday stuff
• They are not under the control of the government!
• They are not touched by inflation rates
• They can be sent abroad if you have to flee the country...

Well I hope we won't get there...