Posted 12 months ago | by Ben Armstrong

Diginex CEO Says Technological Progress is Deflationary – But Inflation Might Be Coming

Diginex CEO Richard Byworth says that technical advances might not save people money as expected, due to the inflationary ideas of central banks and governments.

In a recent conversation with media, Byworth stated that "Technology is just so deflationary on many of our goods and services." Diginex business’s core strategy is to develop a platform for crypto and blockchain solutions.

The potential of technology to disrupt most industries in some way is undeniable, even though there are still some hurdles to overcome before we see the impact of complete transformation.

Diginex CEO Sees a Complex Economic Picture

Byworth recalled that decades ago, CDs were sold at about $25 dollars. Today, in a matter of seconds, customers can purchase new iTunes songs for around $10 to $12 - less than half the price seen when CDs were popular – even including the inflation that many items have seen in recent years.

Technology, along with multimedia development, has helped us solve the cost problems of production while increasing productivity. This deflationary effect of technology is also applicable to several other categories – although it is more complex.

Food, infrastructure and other commodities and services have seen significant improvements in technology, which has effectively reduced the manufacturing costs. However, there are other factors that keep people from seeing these gains in efficiency in from a price perspective.

The crisis of 2008 was the dawn of crypto – and after that event, Byworth began to enter the crypto space to secure his money from inflation.

More Inflationary Ideas are On The Way

Monetary devaluation concerns increased significantly in 2020 – mainly due to the wild ideas coming out of central banks and governments.

Byworth described the situation in these terms,

"It's gotten to a point of being frightening...If you look at a trend line of monetary expansion over the last 40 years, and then it's a fairly steady line until you hit about 2008. Then the gradient just increases. It gets much steeper, and then suddenly, in April of this year, you have a straight line up that is an increase of 25% on the entire increase that you've seen over that 40-year period — you've seen that in four months."

The U.S. central bank takes the Consumer Price Index ( CPI) into consideration when assessing its inflationary objectives. The index basically shows the cost of common goods paid by an ordinary individual based on a variety of goods and services compiled into one number.

Byworth pointed out that,

"Having that CPI target is really just a distraction...They are never going to be able to get that CPI meaningfully higher unless they lose control of the money itself...Effectively these central banks are fighting to get to a 2% number on a basket of goods that is very deflationary."

Inflation makes it easy for governments to deal with debt – "The U.S. government has a gigantic amount of debt, so if the money is worthless, then the debt is worthless...This is the game that everybody is playing, and that inflation and monetary base really means that the only way to protect your value and your wealth is through sticking it in high value assets — so assets that people are going to fight for," he stated.

While a central bank tries to control inflation, Bitcoin appears to become the perfect hedge for any institutional portfolio against the negative effects central planning, according to the Diginex CEO.

To wit,

"This is why Bitcoin is going to continue to be more heavily and heavily demanded.”

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About Ben Armstrong

ef4f73e9ddeb61becab57469962fa946?s=90&d=blank&r=g Diginex CEO Says Technological Progress is Deflationary – But Inflation Might Be ComingBen Armstrong is a YouTuber, podcaster, crypto enthusiast, & creator of BitBoyCrypto.com. Better known as BitBoy Crypto, he works hard to educate and inform the crypto community.

Ben has been involved with the world of cryptocurrency since 2012 when he first invested in Bitcoin. He used Charlie Shrem's BitInstant & lost Bitcoin in the Mt. Gox hack.

In 2018, Ben decided to go "full-time crypto" and focus all of his time and energy into expanding the reach of crypto.

If you have any questions or comments please feel free to email him at BitBoy@BitBoyCrypto.com or contact him on Twitter @BitBoy_Crypto.