Wealth is most basically understood as what you can get, with what you have. In our grandparents’ day, it was understood you should save your dollars. Get treasuries or CDs, save your money (money being U.S. Dollars). That has now changed with the advent of cryptocurrencies, and the inflation of dollars due to growing debt. We will make this abundantly clear with a basic example below. Remember, it’s about what you can get with what you have.
Last year, in October of 2020, Solana cost just under $3.00, so you could buy about 1 gallon of gas. Today you would get over 48 gallons of gas if you had put that $3.00 into Cardano. If you kept your $3.00 in dollars, you can still only get one.
Solana, as a smaller altcoin last year, surged more than others, so let us look at some other examples.
Let’s say you decided to save $1.60 last year, and at the time a loaf of bread cost $1.60, this year that loaf of bread costs $2.19, so you have lost almost about 30% of the value of your dollar. Also one year ago, the Cardano crypto coin was at .10 (ten cents), so the $1.60 bread would have cost you 16 Cardano.
Today Cardono is at $2.19, so instead of the bread costing me 16 Cardano it now only costs me 1. If I had saved the $1.60 last year by buying Cardano, I’d now be able to buy 16 loaves of bread, versus 2/3rds of a single loaf with the dollars I saved instead.
Do you see where this is going? It is a tremendous shift in the economics of preserving your wealth.
Ethereum (ETH) is one of the more popular coins, it has drawbacks like high mining fees, but even still putting a dollar into ETH last year, overall today you would now have $7.54 in purchasing power.
As you can see from the charts, all these coins have some volatility, there can be sharp drops from profit-taking, but over the course of just a year we see the same thing over and over; if you want to preserve and grow your wealth then cryptos are far superior to the ever-inflating dollar.
Certainly BTC, or Bitcoin, is the biggest cryptocurrency, it was the first after all. It only went up 300.93% for the year, still far better than fiat currencies that lost buying power. In less than a decade (think 10 year CD), it has increased in value 40,178.14% – that’s right, over Forty-Thousand percent.
As you can see the smaller coins that get adopted at this point have the greater potential for huge growth.
This issue of dollar wealth versus crypto for future buying power becomes even more immediate right now as the United States could be just weeks away from defaulting on its debt for the first time ever.
To truly understand what is happening, I recommend the video below. Just watch the first 10 to 15 minutes worth, it is critical understanding to the psychology, and mechanics of what is taking place in our changing economic model. Join our “Crypto For Beginners” group on this site to get the education needed, so you are not left behind.