Protect your wealth against inflation with our Inflation Shield Bundle
The 2020s have been off to a crazy start, kicking it off with a global pandemic, causing a rapidly digitising world, a complete political and societal divide and, more recently, the absolute chaos in Ukraine following Russia’s invasion in February 2022. These insane factors have led to even crazier financial conditions than expected. Inflation hitting 40-year highs in the US and near double-digit inflation across the rest of the globe has severely hurt our wallets…
We’ve all noticed things are getting more expensive. One hundred Rand used to go a lot further than it does now. Filling your tank with petrol costs as much as a plane ticket used to, and going out for dinner requires strict budgeting for the remainder of the month.
Inflation is devaluing your money every day.
We’ve all heard about inflation, but few know what it truly means for your wallet and your future.
Not to mention that inflation has hit highs not seen in forty years in the US and how difficult it is for inflation to be brought back down.
We’ve broken down how record-high inflation works in a simple way, and we’ve built the perfect product to deal with it. Let’s dig in.
Why is inflation so high?
Every government worldwide has a central bank that controls the ‘printing’ (issuance) of that country or region’s currency. Covid resulted in central banks ‘printing’ vast amounts of money, pumping it into the economy to keep people spending and businesses earning. It worked, but all your money in the bank is now worth less than before Covid. Why? Well, imagine there are only 100 avos in the world. If someone finds another 100 avos, the value of the first 100 avos decreases because it’s easier to get avos now. Covid money printing dumped hundreds of avos on the market.
So much so that more than 40% of all US dollars in existence have been printed since Covid began!
(When the Fed buys assets, that in turn gives money to banks, and that money eventually finds its way into the economy)
Nowadays, central banks don’t have to print money physically. They can make money easier to come by in the form of lower interest rates on debt. Lower interest means easier access to cheaper loans and, therefore, increased spending. If your credit card interest rate is 6%, it’s easier to pay it off, and people are happier to spend that money, but if your interest rate is closer to 20%, it becomes challenging to pay that off, so people spend less.
Thus, raising or reducing interest rates becomes an important tool for stimulating the economy.
In response to COVID, the US Central Bank (known as the Fed) cut interest rates down to near zero percent in an attempt to stimulate the US economy.
But what happens when you make debt cheap, and spending increases dramatically? You get inflation.
Since then, US inflation has gone on to record highs and recently printed an inflation rate of 8.2%. The US Central Bank has now gone from lowering interest rates to raising them in order to slow down the economy and try to slow down this rapid inflation.
There have been a number of interest rate ‘hikes’ this year, but the most notable was in June 2022, when they recently raised by 0.75%, which was the most significant rate increase since 1994.
How does this affect my investments?
Jerome Powell, the Chair of the Federal Reserve of the United States, said that Americans should ”Hope for the best, plan for the worst.” This comment was with respect to shelter inflation, otherwise known as housing costs. Powell expects that housing costs will be difficult to bring down and will take a long time to adjust downwards.
Unfortunately, inflation is here to stay. Luckily inflation has started to decrease this year, but it will be a long process to get inflation down to regular low levels of 2–3%.
We sit in uncertain times — where inflation is running wild, and global growth is slowing down.
During these times, many ‘smart money’ investors look to protect their assets from the effects of inflation while still trying to gain exposure to some form of capital growth.
There are two assets that are particularly effective at protecting against inflation — namely, Gold and Bitcoin.
“If you believe we’re going to have irresponsible monetary policy and inflation going forward. If it’s in a bull phase, you’re going to want to own Bitcoin. If it’s in a bear phase, for other assets, you want to own gold.” — says Billionaire Investor Stan Druckenmiller.
Why not own both?
The perfect inflation protection Bundle
Our team at Revix, a Cape Town-based investment platform backed by JSE-listed Sabvest, developed a one-of-a-kind bundle that offers you inflation protection, as well as the upside potential offered by Bitcoin.
We’ve called it the Inflation Shield Bundle — an algorithmically optimised investment basket, giving you the protection of gold with the performance of Bitcoin through a single investment. The ratio of gold to Bitcoin within the bundle is based on historic risk vs return data aimed at maximising returns while taking on the least amount of downside risk possible.
Currently, the bundle consists of 75% Pax Gold (a cryptocurrency backed by 1:1 physical gold in London Brinks vaults) and 25% Bitcoin (digital gold for a digital world).
“This is the perfect Bundle for those investors looking to protect themselves against inflation by taking the best aspects of both Gold and Bitcoin into one product.” — says Chris Beamish, Investment Analyst at Revix.
“The really cool part about this Bundle is that you get the safety of Gold for when times are tough, and when the market turns around, you get the performance of Bitcoin too. Since it was created, this Bundle returned nearly four times the return of gold.” — Continues Chris.
The Inflation Shield Bundle offers protection against rising inflation, allowing you to ride out the current market volatility while making the most of the rising gold and Bitcoin trends. The inclusion of Bitcoin gives you just enough growth exposure to allow you to spring back from the dips, while the high percentage of Pax Gold anchors your investment against the money printers. The Inflation Shield Bundle is an invaluable tool to add to your portfolio, allowing you to hedge and secure value while facing curveballs.
About Revix
Revix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember, cryptocurrencies are high-risk investments. It is important not to invest more than you can lose and consider your level of experience and investment objectives before investing. If needed, seek independent financial advice.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.
To learn more, visit www.revix.com.
