A financial crisis is one of the most common problems with which of the business owners have to deal sooner or later. Inflation caused a massive lost value of many currencies in Africa, also as well as in Latin America. In developing countries cryptocurrencies potentially could succeed as a real form of money. In those countries, cryptocurrencies may offer alternatives. In this article, I want to spend some time to discuss how hyperinflation affects small-sized businesses and how Cashaa can help to survive, even thrive during a currency crisis. Natural inflation is good for business in some cases. But what if it is hyperinflation, that your business might face. This is a terrible situation when your company stops bringing in revenue anymore. You are on the brink of losing your company but have no idea what to do.
Venezuela example
Venezuela was once the richest country in Latin America. By 1950, as the rest of the world was struggling to recover from World War II, Venezuela had the fourth-richest GDP per capita on Earth. And its democratic government was once praised worldwide. It has largest known oil reserves in the world. Unfortunately for Venezuela, this wealth wouldn’t last — and an over-reliance on oil would soon decimate the economy in unexpected ways. Today Venezuela’s democratic institutions and its economy are in shambles. Inflation rate dramatically went up. As result, the anti-government protests and a lot of poured human blood on the streets. Venezuela currency, bolivar had collapsed a few years ago and it’s still losing value over 100% every year.
Turkey example
Another actual example is Turkish Lira. Lira is one of many emerging market currencies that is going through some very serious deals at the moment. Turkish economy over the past years has been growing very steady. There’s been a lot of investments in infrastructure. The GDP has been quite well in Turkey. However, there is a serious issue with the currency this moment. We can see in the news how is the Turkish lira collapsing every month. The depreciation of the Turkish lira has been so dramatic, that purchasing power is depleting in global stage. Therefore, this leads towards prices going up.
Small enterprises in periods of prolonged currency crisis could suffer from economic downturns, due to their limited financial resources. Sometimes currency crises arise because of the interests of individuals, groups or failed Monetary Policy. Subsequently, restrictions on a foreign exchange market. If your business expands abroad, a stable exchange rate is a crucial part of the business, isn’t it?
Central Banks have control of the fiat currency. So in difficult times, they might implement various forms of managing Monetary Policy, but these fiat currencies have same flaws. Centralized controls that can manage and move money around like a toy, and go through the tools of Monetary Policy, no matter what you do, eventually you’re going to end up with facing the same results. We’re living in the world where a meaningless tweet can be cause of plummeting one currency against another. The bottom line is that this kind of issues makes impossible to use the over-depreciated currency to do business.
Solution
As we know Bitcoin could be used as a real form of money across the globe. A real example in 2014 when Argentine currency, peso collapsed people massively swapped out peso to Bitcoin. However, in many countries Bitcoin is restricted due to laws or regulations and it doesn’t allow entrepreneurs to use Bitcoin. It’s obvious that it isn’t appropriate to use it as an exchange unit. So we need a tool like Cashaa, which has a high quality AML/KYC policy, which allows Cashaa to make a good deal with regulators. By using Cashaa platform you all of a sudden eliminate inflation. Your business doesn’t affected by any kind of inflations. Because most cryptocurrencies’ and token’s, as well as CAS token’s supply, is limited. If it is a high or hyperinflation outside, your business will survive, even thrive. When economy faces recession, usually banks increase interest rates and charge high fees. It makes the business worse and this vicious circle leads to crash down all economy, including your business. Cashaa platform provides the same services, as bank does. Furthermore, it is safe, low cost and ease. In my previous article “CASHAA: A GLOBAL BANK” I describe how one digital wallet can be a global bank. So you and your business no need any traditional banks anymore. You can safely send and spend your money anywhere across the world. Also in my another article “Looking for a New Payment Company? We have good news for you” I discuss how you can use Cashaa platform as a payment system and what kind of advantage you could take.
Conclusion
In such difficult times, when everything goes to hell, it’s easy to panic which is driven by fear and doubt. All these emotions are not based on fact. Emotions have huge power, that may change the direction of business when currency rapidly falls down as a stone. But do you want to give in to panic and accept self-destruction? So take decisive steps and start using Cashaa platform. Crises in traditional markets offer the opportunity to show all potentials, cryptocurrencies and great projects like Cashaa. Let your business live and prosper.
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