Image by Aleksi Räisä on Unsplash
Today, most Canadians have to work hard to earn and save money but even that’s not enough. A big reason for this is due to inflation.
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Inflation is an increase in the cost of goods and services over time. It can be a positive thing if you own assets (like stocks, real estate, even cryptocurrencies) because as inflation rises, so does the value of your assets.
On the other hand, it also means the cost of goods and services is also growing. It becomes more expensive to live and save, particularly for the middle and low-class. Even worse, while inflation grows, people’s wages are staying the same. Who wants to pay more for groceries when they’re earning the same amount?
Did you know? Canada’s inflation rate increased to 4.1% in September and the average house prices rose 14% in the past year. Even if people are able to save money, their savings are being slashed by growing inflation.
What’s Causing Inflation?
When the pandemic hit, many governments — including Canada — turned to printing money to help their citizens endure the crisis. By having more money, Canadians could afford to pay their rent, food and medicine.
At the same time, having too much money is also detrimental because it means the devaluation of the currency.
Suppose for a moment that money grew on trees. It would be so easy to get money to buy goods, wouldn’t it? Money would be everywhere. It would be cheap. Knowing this, businesses would charge more money because it’s not worth much.
So as governments continue to print trillions of dollars, we’re seeing a few things happen:
- Devaluation of the dollar
- Price increase (inflation)
- Stagnant wages
For this reason, people are looking for alternative ways to protect their wealth, like bitcoin.
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Canadians are Investing in Bitcoin
More Canadians are buying bitcoin to benefit from growing inflation. More specifically, they’re looking for assets that will not be controlled or managed by governments, like bitcoin.
Bitcoin is a digital, scarce asset. No one can produce more or less of it because the rules of its supply are limited to 21 million. No more and no less.
Plus, every 10 minutes new bitcoin are released into the economy. In this way, bitcoin’s supply is scarce, programmable and predictable.
These are characteristics that together make bitcoin a safe haven, especially during hard times like a pandemic. Not to mention the fact that bitcoin is the best performing asset of the decade with a 200% compound annual growth rate.
How to Buy Bitcoin in Canada
Netcoins allows Canadians to buy and sell cryptocurrencies like bitcoin.
Simply create an account with Netcoins.ca and get verified. Then send Canadian dollars into the Netcoins platform via an e-transfer (or one of our other funding methods). Once those dollars are in your Netcoins account, you can use them to buy bitcoin or any of the other cryptocurrencies it offers. Selling is just as easy and only takes about 2 minutes.
Netcoins also offers features like limit orders (or trades that self-execute at specific prices) and price alert notifications (so you can stay updated on any price movements with cryptocurrencies).
There are no fees when it comes to funding, cash withdrawal, cancellation or limit orders.
Netcoins is a publicly-traded company (CSE:BIGG) (OTCQX:BBKCF) and is fully regulated. Being regulated means that it must adhere to specific requirements laid out by the regulatory bodies in Canada.
Download the Netcoins mobile app on Google Play or the Apple Store.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. The content was purely for informational purposes only and not intended to be investing advice.