Inflation & Epsylon

What is inflation?

Inflation represents the extra money that is needed to live the same as the previous year (or any other period to which the inflation data refers).

Long-term effect of Inflation.
  • High inflation particularly affects those who have the most difficulty in increasing their income, who often are the poorest.

Hyperinflation

Hyperinflation is very high and typically accelerating inflation. There have been several cases of hyperinflation throughout history. One of the most known is Germany after World War I.

German kids playing with a kite made with banknotes.
People on earth living under high Inflation.

Purchasing Power USD

The lack of a currency backed by gold or something similar (BTC) independent of a political decision implies that it will depreciate permanently versus actual assets. It has always been like this and it will keep happening.

The purchasing power of USD with the time.
  • Interventionism, bureaucracy, high taxes, etc. drive up inflation.

2020 Covid Stimulus & 2021 Inflation

In life, every action has a consequence, and an unprecedented stimulus program, financed by the creation of money through an exponential increase in the money supply, will have consequences.

40% of US dollars in existence were printed in the last year alone.
2021, Monthly US Inflation rate.
25 Year US Inflation Chart, Inflation reaching 25 Years highs.
  • The package looks big, but when you open it, it is far less than anticipated.

Will the History repeat?

After a global flu pandemic in 1918 & 1919, and a depression that tanked the economy in 1920 & 1921, the United States entered into a decade of unprecedented growth and prosperity, the Roaring Twenties, from 1922 until 1929.

Roaring Twenties “American way of life”.
  • The depression in 1920–21 was short, about 18 months. (Let’s see in the following months).
  • In 1920, the Interest rate reached 7%. (In 2021 we have reached 5%).
  • Big technological advances in the 1920s. (Energy, Autos, Appliances, etc vs Blockchain, AI, Autonomous driving, etc).

Inflation Hedge with Epsylon

When it comes to investing the breaking point between winning and losing, is inflation. Any return that is obtained below inflation represents a real loss.

  • The yield generated through our platform overcomes Inflation.

Yield Farming 🚜

Vaults are capital pools that regularly generate yield based on opportunities present in the market. Vaults benefit users via socializing gas costs, automating yield generation, and rebalancing processes.

If you are already excited about Epsylon, make sure to follow our socials below. 👇

Links:

Twitter: https://twitter.com/epsylon_finance

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