Japan's prices are skyrocketing! Inflation has been out of control for 44 consecutive months. Is your money still losing value?

I just saw a statistic that chilled me: Japan's inflation rate in November rose by 2.9% year-on-year, and the core inflation rate reached 3.0%, marking the 44th consecutive month exceeding the central bank's 2% target!

What’s even more heartbreaking is the daily expenses—rice prices surged by 37.1% year-on-year! Just imagine, even the most basic staple food has increased like this; the pressure on ordinary people's wallets is unimaginable.

What does this mean? The Bank of Japan raised interest rates to 0.75% on December 19 and hinted at the possibility of further rate hikes in the future, but this “fever-reducing medicine” seems not to have fully contained inflation. A prolonged battle against inflation is unfolding in reality.

Core impact: Money is getting thinner

The essence of inflation is that the purchasing power of money is quietly diluted. When prices continue to rise, the cash you have in the bank or in hand can buy less and less. For investors and ordinary families, this forces everyone to think: how to preserve asset value and even increase it to outpace inflation?

Traditionally, people seek real estate, gold, or the stock market. However, against the backdrop of high global interest rates and increasing economic uncertainty, the volatility risks of these assets are also rising.

New idea: Finding a stable anchor against inflation

At this time, an asset that has value stability, global circulation, and is not directly influenced by the monetary policies of a single country becomes strategically significant. This is precisely one of the solutions that blockchain and decentralized finance (DeFi) aim to provide.

In the realm of crypto assets, investors are also looking for a stable cornerstone in a volatile market. For example, decentralized USD (USDD) anchors to the US dollar at a 1:1 ratio through on-chain over-collateralization. Its value stability comes from transparent asset backing and smart contracts, rather than relying on the inflation-fighting policy effects of a central bank. This provides an optional, globally consensus-based value storage tool when traditional fiat currencies face inflationary pressures.

In summary:

When inflation becomes a prolonged battle, protecting purchasing power is the most practical investment. Whether choosing traditional paths or exploring stable assets in the crypto realm, the key is to actively manage risks and not let your wealth be eroded by inflation in silence.

Are you ready with your coping strategy against uncontrollable inflation?