So that's out! And what a statement, huh? But trust me, it seriously comes from the bottom of my heart. Crypto is volatile yes, that is a risk. But doing nothing, and seeing how quickly the euros in my bank account decrease in value, is perhaps an even greater risk at the moment.
For everyone who thinks that life in the Netherlands is still so good, I'm afraid I'm going to help you out of a dream. And yes, for enough people, life in the Netherlands will indeed still be good enough. The fact is, however, that the Netherlands is currently dealing with record inflation.
A small graph of inflation over the last 12 months clearly shows this. And this chart is from January 2021 to December 2021, but January 2022 is doing even better with a percentage above 6%.
Chart inflation Netherlands 2021
What does that look like? Amazing, right?
You can say that the Netherlands suffers a bit from inflation, and then I think that in the second month of this year I already made THE understatement of the year. In other words, inflation threatens to hit many people very hard in their wallets. Because yes, that is of course the case with inflation.
All living costs rise, but your income does not rise with it! So the euros that you get in your bank account are worth less with the month that goes by. You can now say, 1 euro is still 1 euro. Yes, that is certainly true. 1 euro will always be 1 euro. But what you bought 10 years ago for 1 euro, the same now costs you 5 euros, so to speak. And therein lies the problem. You can do less and less with the same amount of euros!
And of course the salaries of most people do not or hardly increase with inflation, and if a salary does increase, we are certainly not talking about an increase of more than 6% per month! So we can conclude with a probability bordering on certainty that more and more people in the Netherlands are currently getting into trouble. Because if you look at this chart then inflation is in the euro, but if you look at the consequences of that. Then this percentage is much higher.
The shopkeepers have to pay more to buy their goods, they really do pass this on to their customers. Energy prices have risen, which is of course passed on to customers. And these are only 2 things, of the many that private individuals are currently encountering.
In short, your bank account runs out much faster, and people have to puzzle to get by with their money. Saving is often no longer possible and more and more people are in danger of getting into serious financial problems.
As I said, crypto is volatile, yes. But this has 2 sides. The fact that it is volatile also presents opportunities. In addition, there are many projects to build up a passive income. Like LBI, SPI, INDEX, ARCHON, DHEDGE, and outside the Hive Chain, you also have many projects that let you build a passive income stream.
Try to do that with your euros or dollars these days. In crypto there are options that pay you 1% or even 3% per day. If you can also let the effect of compounding interest kick in, then you understand that you have found something that you have to be careful with.
And yes, of course you have to deal with the volatility with crypto, the prices are not stable. Take Hive or Leo as an example, the price is not the same for 24 hours. 1 euro is 1 euro today, and will be 1 euro tomorrow. But where Hive and Leo have the opportunity to rise, the opportunity for the euro is not so great. And with the growing inflation, which they don't seem to do much about as yet! I'm very happy that I can create opportunities within, and thanks to, the crypto.
