Does cryptocurrency really protect us against inflation?

Living in one of the cheapest countries in the world does not guarantee easy access to vital needs. When labour and purchasing power are low where products are cheap, products that are seen as cheap are actually expensive.

A person earning $1.25 per hour needs to work 4 hours to buy a $5 product where he or she lives.

When the same product costs $20 where a person earning $10 per hour lives, the time required to work is 2 hours.

If we compare the two examples above only by looking at the prices, the same product is cheap where it is sold at a price of 1.25 USD and expensive where it is sold at a price of 20 USD. We can even say that it is overpriced. However, when we look at the labour force that determines the purchasing power, we encounter the opposite picture. We can see that the price of the product is expensive where it is cheap and cheap where it is expensive.

The more money earned in a short time, the higher the purchasing power will be. Side factors such as inflation should not be ignored in maintaining purchasing power, but the picture becomes easy to understand when we look only at the sticker price of the same product in the evaluation.

People in places where the power of the money they use is ensured can lead an easy life in places where the power of money is lost. It is only the strength of the money they earn that ensures this. Higher inflation and the increased cost of living relative to the local population, due to the exchange rate difference, do not negatively affect the people whose currency is protected, but positively. As their purchasing power is higher than before, they will have easier access to what they desire.

image source

We think that crypto will eliminate this difference, at least the value we have against inflation can protect itself. However, since the adoption rate of crypto is not yet high enough and there are very sudden changes in the markets, I do not think that it is protected against inflation and price fluctuations in crypto markets.

How can we explain crypto that is not affected by inflation as long as the values are indexed to foreign currency and especially the dollar. For example, the price of the product that I could buy yesterday for 100 bch's, although it has not changed at all today, the value increases to 120 bch's due to the decrease in the bch price. Doesn't this mean that the crypto that I have, based on the day before and the day after, has decreased by 20 per cent?

Yes, the amount of crypto I have is the same, but there is a decrease in the product I can buy with my crypto. One day I can buy more stuff, the next day I can buy less stuff. Isn't that inflation?

My money may be protected against inflation for the future, but what about today? With today's realities, does having crypto money really protect us against 100% inflation? The answers of people with more knowledge about crypto may vary, but for me the answer is simple; no with today's realities.

I realise that crypto is the future and the freedom of not being dependent on other parties in terms of ease of use and I will definitely continue to hold my cryptos, but if we look at it from today's perspective rather than the future, we can see that we have a long way to go.