Can USDT Protect Your Naira from Inflation?

Inflation can be destabilizing 😮‍💨. It’s painful to see that your salary can no longer buy the things you used to buy easily. 

From the rising cost of food to the drop in the value of your money, inflation really sucks. And this year, inflation in Nigeria has been especially challenging to deal with – for July alone, annual inflation rose to 24.08%; the highest in 18 years 🤯. 

Fortunately, you can beat this with crypto. Whether it’s buying a stablecoin or saving in Dollars, Quidax is here for you. Let’s explain how.

What is Inflation?

Put simply, inflation is the rate at which the prices of goods and services increase over time 📈. It is usually determined by two factors: 

• An increase in the price of goods and services.
• A decrease in the purchasing power of a currency.  

When inflation rises, people spend more money to buy the same quantity of goods and services. Remember when our parents talked about things being cheaper “back in the day?” Well, that’s the effect of inflation.   

How Does Inflation Start?

Inflation happens when there’s an increase in the amount of money circulating in a country. This can be due to several things:

• A country’s government may print more money to fund its military, carry out a project, etc. 
• The government could also print more money as a form of relief 💸. For instance, governments around the world printed money for stimulus packages during the COVID pandemic.

Whatever the reason, this excessive money printing means that people can buy more things. As a result, sellers also raise their prices so they can meet up with demand. 

Soon enough, prices rise everywhere, and the value of the currency itself drops 📉. 

Stablecoins Can Protect You from Inflation

Anytime inflation’s effects start to get worse, the primary solution is for people to save their money in Dollars 💵. 

Why? 

You see, the Dollar is the world’s reserve currency. The demand for the currency has continued to grow; and not just in the United States. As a result, the Dollar’s price has remained stable over time 💪. 

Sadly, however, access to the Dollar isn’t always easy. This is due to several reasons: 

• The U.S government itself can restrict how much of the Dollar is being printed 🚫. Hey, they have to control their inflation too, right?
• Some countries can also restrict citizens’ access to the Dollar to avoid their currency falling even more against it. 

And, this is where cryptocurrencies come in 🪙. Thanks to stablecoins, you can access the Dollar from the comfort of your couch. 

Basically, stablecoins are cryptocurrencies whose values are backed against stable assets – such as gold, fiat, etc. 

Take USDT, for instance. Its value is tied to that of the Dollar, so 1 USDT is always equal to $1 🤝. This makes stablecoins the preferred choice if:

• You have your fears about crypto’s volatility.  
• You need unlimited access to your money. 

Today, the most popular stablecoins you can buy easily in Nigeria include Tether (USDT), USDCoin (USDC), and Binance USD (BUSD). And, they’re all available on Quidax 👍. 

Quidax Dollar Savings: Beat Inflation And Earn Returns 

If you think that merely buying a stablecoin is the best we’ve got at Quidax, well there’s more. 

Say hello to Quidax Dollar Savings! 💃

Our Dollar Savings product makes it easy for anyone to deposit Naira, convert it to Dollars, and save it. 

Yup, that’s right! In just a few steps, you can convert your money from Naira to the Dollar, save it on Quidax, and guarantee that you’ll beat inflation 💆‍♂️. What’s more? You get to earn up to 10% in annual interest on your savings

So, you get to beat inflation and earn interest on top of it. That’s the perfect double treat! ✌️ 

Final Thoughts 

Inflation is the reason your favorite things cost more by the day. Fortunately, Quidax provides the perfect way to protect yourself and your money. All you need to do is sign up to get started.