One of the biggest challenges for Brazilians for decades – and for people in many countries today – is how to deal with inflation today and protect the family budget and its reserves. Investments are an important resource and tokenization of assets has been standing out among the options.
We know that inflation is certainly the biggest ghost in Brazil’s daily life, greatly impacting purchasing power and imposing serious restrictions in more serious contexts, especially for the lower socioeconomic classes.
If today we no longer live with hyperinflation, a small inflationary pressure today strongly affects a society that is more dependent on consumption. But how can investments help in this task?
BLOCKBR, a native web 3.0 company, will show the challenge of current inflation and how investment tokens can protect your capital!
HOW IS THE CYCLE OF HIGH INFLATION CONSEQUENCES
Out-of-control inflation creates a negative cycle that feeds back and causes ongoing damage. See how it can impact society’s everyday life.
LOSS OF FINANCIAL CAPACITY OF THE POPULATION
High inflation affects all social strata with different impacts, but one thing is certain: it is more perverse for the middle and lower classes of the population.
In the lower classes, there is little or no savings capacity during the stability that protects in the inflationary crisis. In addition, the pressure is always stronger on the prices of the basic basket and essential services, which are the most consumed by the poorest populations.
This is called food inflation.
The middle class, in addition to these expenses, has historically assumed the costs of private education and health – increases in these items greatly penalize the budget.
CVM regulation: what impact does it have on tokenization?
DROP IN CONSUMPTION AND UNEMPLOYMENT
The immediate consequence is a drop in consumption, which ends up reducing companies’ revenues and many are forced to lay off employees. Unemployed people reduce consumption and companies’ sales fall – this is due to the vicious cycle of inflation.
MORE EXPENSIVE CREDIT
The expectation of inflation is part of the financial cost of personal loans and financing for people and companies, which makes credit more expensive. The risk of default in a scenario of high inflation is greater and also increases this cost.
FALL IN PRIVATE INVESTMENTS
With falling revenues and more expensive credit, companies only spend on what is necessary. This will cause new problems, such as the loss of customers, outdatedness in relation to the market and large expenses to recover in the future.
INVESTMENTS WITH LESS PROFITABILITY
A direct consequence of inflation is the appreciation of invested capital, as real income is the final result after discounting period inflation.
As an example, if you invest R$ 100 in CDB for 12 months and receive R$ 110 at the end, already with tax discounts, your gross return was 10% but if inflation in the period is 12%, your real return will be negative 2%.
That is, you lost money (even with R$ 10 in your pocket).
This is what we usually call the corrosive effect of inflation, which reinforces the importance of being very careful with investments so that they result in real profitability!
HOW INVESTMENTS CAN ACT AGAINST INFLATION
START INVESTING NOW
When is the best time to invest?
Now! Even in times of moderate or high inflation, investing is better than leaving money sitting around waiting for an emergency.
There are short-term applications with great yields, such as structured tokens backed by company receivables, a safe way to protect capital.
There are also products linked to inflation, such as securities indexed to the IPCA plus a fixed rate – this is the case of the IPCA+ Treasury.
You just can’t stop investing!
CONSIDER LONG-TERM INVESTMENTS
Time is a great ally of good investments for those who can keep the capital invested for a long or medium term. Barring extreme situations in the economy – which fortunately have been rare – long-term investments are the most recommended.
In addition to time counting in your favor, many applications have a decreasing incidence of IR and this helps to discipline the act of investing.
INVEST IN REAL ASSETS
Real assets such as real estate, precious metals and commodities are options to invest in the long term and whose appreciation normally follows the price increases of items in the sectors to which they are related.
In addition, they are highly sought after assets during and after crises, as they are excellent stores of value. But how to invest in these goods without having the necessary capital because they are of high value?
An excellent alternative is the tokenization of real assets, the process in which companies offer their goods and products through a digital asset – the token – on a blockchain with a very important advantage: the fractionation of assets.
In real estate tokenization, an apartment can be traded in hundreds or thousands of low unit value tokens. In this way, it is possible to invest in fractions of the tokenized property and gain from the appreciation in future sales or rental income.
Tokenization is also present in other real assets such as gold tokens and future crop tokens.
DIVERSIFY YOUR PORTFOLIO
The best inflationary protection lies in diversifying the investment basket, combining assets with different maturities and gaining from profitability over time.
With tokenization, you can find tokens from traditional products to tokenized precatories, including business projects in mining and agribusiness.
There is no shortage of options to create an efficient tokenized wallet and protect assets from the effects of inflation!
WHY START INVESTING IN TOKENS WITH BLOCKBR!
Investment tokens are an efficient way to invest capital and protect it as much as possible from the losses caused by inflation. And there is no shortage of sectors of the economy with great rewards in tokens.
But buying token seems complicated for you? Believe me: investing in tokens at BLOCKBR is simpler than you might think!
Opening an account only requires some essential information – less than what brokers ask for, but without neglecting the legality you expect.
Afterwards, just create a digital wallet to store your tokens with each investment. With your account and wallet in hand, just access our token marketplace.
You will get to know the investment proposals in tokenization of companies in all sectors. You will certainly find those that will meet your investment expectations.
Start with offers from 50 reais, get to know the token market and protect yourself from inflation with your investments!
BLOCKBR Digital Assets is a native fintech web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?