We always hear about inflation but what is it and what is it doing to our money? The classic definition of inflation is an expansion of the money supply, however most modern-day economists define inflation as the rate at which the level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
Central banks set monetary policy and control the creation of currency in a balancing act between inflationary and deflationary forces. As governments have dramatically increased the money supply, they have greatly diminished the purchasing power of our money.
Interest rates are one way that we can protect ourselves from inflation. In good practice, the accumulated interest on a savings account for example should account for the purchasing power lost through inflation. Currently, interest rates are at historic lows, meaning every day your money sits in a savings account, it is losing value in real terms.
Inflation at 1% or 3% may not sound too scary but inflation can be one of the most insidious forms of theft. In fact, the government started to expand the printing of currency in 1913, the value of the dollar today is worth less than 2 cents in 1913 dollars. That means that the dollar has lost 98% of its purchasing power over the last century. This system is stealing from millions of Americans and it needs to change!
How to Protect Yourself from Inflation
Traditionally the best asset class to protect yourself from inflation has been precious metals. Gold and silver have been used as money for hundreds of years and by having a finite supply they protect holders from the debasement of currency.
In modern times, things have gotten a bit more complicated. The price of gold and silver have been suppressed in order to hide the devastating effects of rampant inflation. In fact, there are several ongoing lawsuits and investigations alleging the coordination of banks to suppress the price of silver. If the same institutions that are causing mass inflation are also manipulating the asset that is supposed to be a safe haven, where can we turn?
Cryptocurrency is a new asset class that came into being with the advent of Bitcoin in 2009. The release following the 2008 great recession may be more than coincidence. It became clear that the current financial system was broken and average people needed a way out. The digital currency Bitcoin instituted a finite supply of 21 million bitcoins.
This is deflationary and in theory, the value of Bitcoin should continue to rise. Bitcoin is gradually mined, decreasing at a fixed rate over time, creating a deflationary effect despite the increase in the money supply. Bitcoin was the first cryptocurrency, but there are hundreds of others and one of them is offering a unique solution to inflation.
What is a HERO
The HERO is a mathematically defined asset designed to appreciate annually by five percent (5%). This means an investment of $1000 should net you, by definition, a return of $1050 after one year. The HERO is built on and trades on the BitShares platform.
Using the BitShares exchange you must use your BitShares (BTS) tokens as collateral for a 200% loan. This creates the asset known as HERO. This methodology not only allows for protection from inflation but it also opens the door for some very powerful solutions to problems plaguing our planet.
After seeing the explosive growth in Bitcoin from a few pennies to over $4,000 in less than a decade, the creators of the HERO wanted to find a way to harness this growth for the good of humanity.
BitShares has developed a way to create digital currency endowments that can leverage industry growth to multiply a single donation into a steady stream of donations that can last for years. A million dollars donated in Bitcoin five years ago at $4 are worth a billion dollars today. BitShares plans on harnessing the power of its own growth to multiply funds in an endowment.
The Billion Hero Campaign is going to start raising such an endowment immediately to help the victims of Hurricane Harvey. You can donate any digital currency on the BitShares DEX to the bhap-rebuild-houston BitShares account and watch how it generates HEROS for Houston over the next two years.
BitShares is building a new monetary system. This system is designed to empower humanity with honesty, transparency and democratized decision making. Fight inflation and make the world a better place.
The Billion Hero Campaign has also launched an online game where players can learn about digital money by participating in small games and activities. To learn more about the Billion Hero Campaign and to sign up for the game use the following link: