What is Inflation? How inflation is impacting us? By @yuvi243
Hello everyone hopefully you all are healthy and happy. Today I'm talking about a serious issue that we all need to focus on. Inflation is robbing us since the creation of the currency and we can't do anything about it but with proper knowledge we can surely prevent or minimize the damage it can make on us.
Lets take an example to easily understand what inflation is, when i was ten years old we take 10rs everyday with us to eat 2 samosas at lunch but today if i go out with 10rs i wouldn't even get one samosas. I have the same note of 10rs which i used to have when i was ten but it didn't have same value now that because of inflation. Inflation is a situation in which the value of currency decreases as prices of living increases.
There are alot of factors that can cause the inflation. Mainly the factors are production cost, international market rates, reductions in tax, increase in demands etc.
There are three types of Inflation
Let take an example of increase in rates of Diesel/petrol. Increase in petrol prices impact everyone even those who don't have vehicles. You may be thinking how can petrol price impact people who don't have vehicles. well, you may not use any vehicle by your self but every goods that reach you is trading on transport. And increase in transportation price impact on the price of every good you are buying.
As we all know increase in demand always impacts on price of any good and service. For example, Delhi is a big city and pollution in delhi is always increasing but the land to live there is limited. Thats what builder take in mind so every time they sell a landmark they wait for highest buyer and sell property at highest bid.
Now this is the factor of inflation that Government can Control and they are controlling it since a long time. Physical currency a.k.a money is a centralized currency that means government can increase or decrease their value however they want. But obviously they have limitations for example you can study Zimbabwe Case. Zimbabwe government started printing more money and contributes it in civilian. That doesn't help Zimbabwe anyway because they can print as many money they want but goods are limited.
How can we prevent the damage that inflation can make on us
There is one simple way to prevent the damage rather then using physical currency which is centralized by government we can use digital currency or we can buy assets, properties. Decentralized currency like cryptocurrency, Bitcoin and more is recommended solutions.
Thank you all @steemindia
Regards @yuvi243
Very well spoken. But I have my doubts about the digital currency, as not everyone is accessible to them.
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