Real Inflation and the Need to Invest in Cryptocurrencies to Protect Your Assets

Inflation in Brazil is a recurring challenge for the economy and families' financial planning. Although the Selic rate was raised to 12.25% by Copom, as the updated graph shows, the real inflation faced by the population is often much higher than the official rates published, such as the IPCA. This discrepancy occurs because the official rates do not always reflect the real increase in prices of essential items, such as food, transportation and health, which directly affect purchasing power.

Traditional fixed-income investments, such as CDBs, LCIs, LCAs or even the Tesouro Selic, generally offer returns that follow or exceed the Selic. However, when faced with higher real inflation, these returns end up losing purchasing power. Thus, the investor who depends exclusively on these assets is, in practice, seeing their assets eroded over time.

It is in this scenario that cryptocurrencies gain relevance. Assets such as Bitcoin and Ethereum are decentralized and have deflationary or limited supply characteristics, which makes them a hedge against the loss of value of fiat currency. In addition, the crypto market provides access to innovative financial products, such as staking and yield farming, which offer significantly higher returns than traditional fixed income.

However, it is important to highlight that investing in cryptocurrencies requires study and planning, due to the high volatility. A well-diversified strategy, balancing traditional assets and crypto assets, can be the key to protecting and enhancing assets in an environment of high inflation.