Economists are of the opinion that for an economy to flourish, the inflation rate must sit around 2%. But that has not been the case in recent times, even for developed countries, including the United Kingdom (UK) which recorded an inflation rate of 7.9% in June 2023.
As inflation continues to rise in some countries, especially developing nations like Nigeria, people have become more concerned about protecting their purchasing power. To hedge against inflation pressures, they are contemplating different strategies, which include -the smart diversification of investments, multiple sources of income, micromanagement, and cryptocurrency.
Oduwacoin, a true gauge against inflation
With a fixed supply and deflationary mechanism, Oduwacoin -the first pan-African cryptocurrency ensures scarcity and an inherent protection against the erosion of purchasing power caused by inflation.
Below are how Oduwacoin serves as hedge against inflation
Insurance against FX instability: It is common knowledge that the value of many currencies declines as a result of inflation. And even though Oduwacoin’s price is determined by supply and demand, amongst other factors, the fact that its price is not controlled by inflation makes it more awesome.
Oduwacoin as store of value: Just like gold used to leverage people against inflation, Oduwacoin is now serving that purpose due to its long term potential. Because of its growth trajectory, the crypto is a leveler.
Its decentralized nature: Unlike fiats (dollar, naira, e.t.c.), Oduwacoin is free from centralized authority., which eliminates any form of intermediary or authority. It can’t be devalued.
Limited access: Oduwacoin has a limited supply which is important in curbing inflation. It adheres to a defined supply schedule with a maximum cap on the total amount of coins that may ever be mined, unlike fiat currencies that can be issued at whim by governments. Due to its rarity, Oduwacoin is a desirable store of value because as demand grows over time, its value is more likely to increase.
Upshot
The economy can benefit from inflation, but when it spikes or spirals out of control, it becomes a concern. People are continually looking for places to invest their money in inflationary situations, or even before hyperinflation takes hold, in order to maintain its worth. For centuries, people have turned to real estate, equities, and gold. But the narrative is gradually changing.
