Earlier last year when the inflation rate started to steadily rise, a lot of central bankers and politicians stated that this was a temporary phenomenon claiming that it will evaporate soon.

Here we are now again and inflation is still here and “stronger” than ever.

If you look back into the recent history, when governments used quantitative easing to manage the global financial meltdown, inflation did occur in big numbers. Asset prices went up and the wealthier saw their wealth skyrocket.

In what way technology is deflationary? If we watch closely the circular loop of the economy it goes like this: a) governments print tons of money, b) prices go up, c) companies are in need of measures in order to survive, d) companies invest heavy into software and automation in order to replace people who engage in trivial and repeatable work, e)  unemployment numbers go up as people are substituted by software and robots, f) governments need to support the unemployed, g) governments print more money, h) return to b.

Last Sunday I was having lunch with some friends and they were discussing in what ways the iPhone is the absolute tool for their work, entertainment and more. Just take a moment and think about it. In the same moment your iPhone is a phone, a camera, a laptop, a wallet and many more. All these by just paying 600-1000 euro (you can also make it with an older version :)). This is the way technology is deflationary, 600 euro instead of thousands.

What is the conclusion in all of that? Inflation rates gonna stabilize in some way in the future but the circular loop will stay the same. The result will always be the same. The value will be captured by the ones having the assets.

So what you can do about this in order to make it? Make yourself the asset and let inflation drive your value up. Educate yourself in fields like web3.0, biotech and automation. Create products, build communities online and start selling to them. The next ten years will be transformational for our generation and we all have the same opportunities to create. Don’t get distracted by temporary shiny objects and dopamine-related experiences. Stay focused and optimistic. WGMI

Earlier last year when the inflation rate started to steadily rise, a lot of central bankers and politicians stated that this was a temporary phenomenon claiming that it will evaporate soon.

Here we are now again and inflation is still here and “stronger” than ever.

If you look back into the recent history, when governments used quantitative easing to manage the global financial meltdown, inflation did occur in big numbers. Asset prices went up and the wealthier saw their wealth skyrocket.

In what way technology is deflationary? If we watch closely the circular loop of the economy it goes like this: a) governments print tons of money, b) prices go up, c) companies are in need of measures in order to survive, d) companies invest heavy into software and automation in order to replace people who engage in trivial and repeatable work, e)  unemployment numbers go up as people are substituted by software and robots, f) governments need to support the unemployed, g) governments print more money, h) return to b.

Last Sunday I was having lunch with some friends and they were discussing in what ways the iPhone is the absolute tool for their work, entertainment and more. Just take a moment and think about it. In the same moment your iPhone is a phone, a camera, a laptop, a wallet and many more. All these by just paying 600-1000 euro (you can also make it with an older version :)). This is the way technology is deflationary, 600 euro instead of thousands.

What is the conclusion in all of that? Inflation rates gonna stabilize in some way in the future but the circular loop will stay the same. The result will always be the same. The value will be captured by the ones having the assets.

So what you can do about this in order to make it? Make yourself the asset and let inflation drive your value up. Educate yourself in fields like web3.0, biotech and automation. Create products, build communities online and start selling to them. The next ten years will be transformational for our generation and we all have the same opportunities to create. Don’t get distracted by temporary shiny objects and dopamine-related experiences. Stay focused and optimistic. WGMI