How to use Stablecoins to Hedge Against Hyperinflation

They’re called Stablecoins for a reason. Stablecoins can provide some security during times of economic crisis. Here are two reasons why you should consider investing in stablecoins.

Shift Markets
2 min readOct 27, 2020

“In these uncertain times” has become a phrase so ubiquitous that it’s become a cliche.

In the wake of the pandemic and resulting economic crisis of 2020, many investors are now starting to feel uneasy about that underlying assumption. The volatility of traditional markets is starting to look and feel a bit more like crypto, the line of “safety” between the two seems to be blurring. In 2020 with such an uncertain future, we are all now on the roller coaster.

Stablecoins can replace fiat currency for everyday purchases.

For markets with volatile fiat, switching to stablecoins can be a more reliable way to do business. As cryptos become a more commonly accepted form of payment, especially in online transactions, a stablecoin can offer an alternative currency to an unstable national fiat for day to day transactions. Markets worldwide struggling with political and economic volatility have seen massive growth in the popularity of fiat-backed stablecoins.

Banking services are still available with Stablecoins.

Crypto holders can already utilize saving, lending, and investing with higher interest rates (see our liquidity provider for more information). In countries where the banking system isn’t the safest place for your money, stablecoins allow individuals to own their assets and participate in saving, lending, and investing through other crypto products. Any risk is lessened substantially by using these banking services with a stablecoin backed wallet and can provide interest rates up to 8%.

These “uncertain times” will not last forever, but you can be better prepared for whatever comes next with smart investment strategies. Stablecoins can be an answer to economic insecurity when banks can’t be trusted, and with careful vetting, can be an excellent way to manage your risk against potential inflation.

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Shift Markets

Shift Markets implements the Web 3.0, crypto, and blockchain solutions your customers need, without the headaches.