The Relationship Between Bitcoin and Inflation

One attribute that has actually made cryptocurrencies-- specifically Bitcoin-- so appealing to people is the idea that it's more immune to inflation than fiat money like the dollar.

What is causing the increase in prices for goods and services? 

Inflation is the process whereby currencies decline, in time, causing prices of durable goods to increase. Since most financial experts think that some degree of inflation is good for our economic life, the government, for example, has actually printed more money than we need. It's the reason that a gallon of milk that set you back a dollar a half-century ago is four dollars today.

On the other hand, Bitcoin has normally increased in worth much faster than the U.S. dollar has actually declined-- going from practically useless in 2009 to greater than $65,000 in mid-2021. 

Because it's an unstable market, Bitcoin has actually likewise seen remarkable spikes and also declines, however the trendline with time has actually been upward. This has actually made Bitcoin a significantly preferred hedge against fiat-currency inflation.

Bitcoin was designed to resist inflation, its supply is limited and known, and also, the creation of new bitcoin will certainly lessen with time in the foreseeable future means. There will only ever be 21 million bitcoin, as well as every 4 years, the amount of bitcoin that is extracted is reduced by fifty percent.

Why is the rising cost of living important for crypto?

Bitcoin, as well as specific various other cryptocurrencies like Ethereum, hand investors a choice. A high inflation price for fiat money might incentivize individuals to invest more in digital money because the dollar, or any other countries money you put in a savings account, is actually losing value over time. 

 The business economics of the Bitcoin market is complicated, yet there are functions designed from the start to help it resist the rising cost of living.

Bitcoin can't be manipulated by federal governments readjusting interest rates or printing even more money to accomplish policy objectives.

Like gold and various other limited stores of value, the conventional wisdom around Bitcoin is that it increases in value in unsure times. This has actually not constantly held true, however-- at the start of the COVID pandemic as an example, it dropped greatly together with the stock exchange. It's also a much more convenient store of value than gold.

Scarcity is one way of making a store of value resistant to the rising cost of living. There will certainly never ever be greater than 21 million bitcoin. There is no end to the printing of fiat money or the mining of gold.

As of now, approximately 19 million bitcoin have actually been mined. Every ten minutes, miners process a brand-new "block" and also 6.25 bitcoin are included in the network. 

In 2024, the mining reward will drop to 3.125 bitcoin and will certainly decline by fifty percent once again every 4 years until all bitcoin are extracted. This function, which is baked right into the Bitcoin protocol, is referred to as "the halving".

This scheduled shrinking of brand-new supply in time makes Bitcoin predictable in unique ways. Unlike gold, no brand-new bitcoin can ever before be "uncovered.".

Do cryptocurrencies experience inflation?

Yes, technically, even Bitcoin experiences a rising cost of living as more of it is mined (as does gold). But because the quantity of brand-new bitcoin is instantly lowered by half every four years, Bitcoin's rising inflation price will certainly also be reduced over time.

As long as Bitcoin's purchasing power continues to rise vs. fiat money we often tend to contrast it to, Bitcoin's few-percent yearly inflation price isn't a major problem for holders to think about.

Yet, not all cryptocurrencies are made like Bitcoin. For example, an increasingly prominent classification of digital money called stablecoins, tied to fiat money like the dollar, can be a useful, low-volatility area to save some cash. 

But if a stablecoin is secured to fiat currency, your financial investment will be affected by inflation and might lose value over time as the dollar declines. Some stablecoins have benefits that work just like an interest-bearing account, which might change the worth equation, especially with non-crypto rates of interest floating around zero.

Click Here To Buy Bitcoin At Coinbase

Where Are Your Home's Greatest Energy Drains and How to Mitigate Them

As the summer month near, homeowners must begin to think about how they are going to conserve as much energy as they possibly can. 

This is necessary to take care of the environment and ensure that your monthly energy costs don't go through the roof. The following includes a list of some of the greatest energy drains within your home and how to mitigate them.

Heating & Cooling Devices

According to the U.S. Department of Energy, your heating and cooling devices are often the biggest energy wasters. This applies to both window A/C units and larger, more complex HVAC systems. 

Some homeowners may say that there's no going around this as most of us want our home to feel comfortable. Fortunately, due to innovations in technology, homeowners finally have a few options in mitigating the vast amount of energy that is wasted. 

For example, homeowners now have access to relatively affordable smart devices that help regulate the home's temperature depending on the conditions outside or according to the homeowner's habits. 

This means your A/C unit won't have to be on full blast while you're out at work nor have to come back to a stuffy home.

Interior & Exterior Home Lighting

Let's face it; most people are guilty of leaving multiple lights on within their homes. However, can you believe that according to the U.S. Department of Energy, over 9% of your energy usage comes from your home's interior and exterior lighting? 

Although turning off lights that you are not using certainly helps, it's simply not enough. You can further diminish the cost and amount of energy you are using by replacing your lights with energy-efficient alternatives such as LED. 

You may also seek the advice of an electrical services company to receive further information about how you can reduce your energy consumption.

Electric Stove

Few people understand just how many watts an electric stove uses (2,500 watts) each time it's operated. Add a family that you need to feed multiple times a day to that, and you can quickly see how it can become one of your home's greatest energy drains. 

Although you certainly can't go without preparing food for your family, there are a few tricks to lower the amount of energy you are using. First, it is recommended to turn off your stove before your food is cooked. 

There is often enough heat left to fully cook your food without having to waste more energy. Next, if you don't have to, don't use your stove at all and instead use your microwave to warm up food.

As you can see from the information above, there are several appliances and devices that require a lot of energy to operate. 

Therefore, it is recommended to utilize the information above and apply it to your own home in order to reduce energy consumption and some money at the end of the month.

5 Reasons You Might Not Qualify for a Home Loan

Now that you have found your dream home, you thought qualifying for a home loan would be the easy part. However, this may not be the case. 

Although lenders are generally more eager now than in past years to approve mortgage loans, there are some instances where you may be denied the loan needed to purchase a home. 

Should you be preparing to apply for a home loan, here are some of the most common reasons why you may be turned down.

Poor Credit History

If you have had past credit problems, your poor credit history may be the reason your loan application was denied. Since a lender wants to make sure you are not a high-risk applicant, any problems with foreclosures, bankruptcies, or credit cards could be reason enough to deny your claim. Generally, if your FICO score is under 620, your loan will be denied.

Income/Asset Documentation

Even if you think you have enough money to make a monthly mortgage payment, your lender may not think so, especially if you are unable to provide sufficient documentation regarding your income to debt ratio. 

Should questions arise about this or other related areas, private equity representation may be what's needed to let everyone make a well-informed lending decision.

Very Small Down Payment

If you put down a minimal down payment on your new home, the lender will view you as a high-risk applicant, and thus may deny your loan. If possible, try to put down as much as 25% of the home's price as a down payment, since this will almost guarantee approval.

Issues with the Property

If your new home is appraised at an amount that is far less than the amount of the mortgage loan, your lender may deny your application. While you can get a second appraisal, your best option is to shop around for other lenders.

Limited Employment History

Should you possess a limited employment history or have one where you have changed jobs frequently, this can be used against you by your lender to deny the home loan. 

In most cases, a lender will want you to have at least two years of consistent employment with your current employer prior to approving your loan.

If you have had your home loan application denied, don't give up. By seeking out other lenders and making improvements where you can, it is quite possible you may still get the loan needed to purchase your dream home.

How to Prevent Foreclosure When Struggling to Pay Your Mortgage

When you cannot continue making your loan repayments, lenders and banks will consider selling the asset you had registered as collateral, such as a home. 

There are, however, steps that can help you prevent foreclosure from happening. Below are the hints that you need to consider.

Request for a Loan Modification

When you are stuck on repaying your mortgage loan, one thing you can do is negotiate with your lender. The negotiation will help you reduce the loan terms that you had agreed upon when signing the agreement. 

When requesting a loan modification, you want to either reduce the monthly interest rate or request an extension of your loan term. It, therefore, ensures that you do not struggle to pay for the remaining loan.

Forbearance Agreement

You are eligible to enter this agreement only when you are facing financial constraints on paying the loan. For example, it could be a medical emergency or sudden income reduction. 

You will, therefore, need to prove to your lender the situation that you are currently in, as this will increase your chances of the forbearance is granted. During this period, you should regain your financial stability hence can, after that, pay for the mortgage loan without trouble.

File for Bankruptcy

By filing for bankruptcy, you will be delaying the foreclosure process. You could either file for chapter 13 or chapter 7 bankruptcy. 

To know which is best for your current financial position, it would be best that you consult with a bankruptcy attorney. However, you should note that the lender has the authority to get full payment for the mortgage loan if your request for bankruptcy is suspended. 

Due to this legal move, you will have created a negative credit score, which means that you will not qualify for refinancing.

Consider a Short Sale

When you have considered all the available options yet are not working to your benefit, selling your home is the last resort. You will have to sell the lender your house even though it does not cover the entire outstanding balance. 

Before you proceed with this option, it would be best that you consult with your lender to know whether they agree with your plan.

To ensure that you do not get into this situation, it would help if you do not accumulate your debt. However, if it is inevitable, ensure to go through the options above to know which would be helpful to you.

How to Prepare for Your Next Tax Return

Statistics indicate that over 80 million Americans use a professional on a yearly basis to assist them with their tax returns. If you fall under this category, you've come to the right place. 

As the old saying goes 'Proper Preparation Prevents Poor Performance'. As such, the IRS recommends that you prepare for the next tax season as soon as possible.

Prepare Important Documents, Bank Statements, and Tax Forms

The idea of gathering your documents early, for the next tax season may seem minor, but gathering all the documents you need and placing them in a convenient location can help to ensure that you don't forget anything once the season actually approaches. 

Experts suggest that you should create a folder in which you place every document that you'll need for the upcoming tax season.

Make A Charitable Donation

Spring and summer are perfect for doing some thorough cleaning around the house. In the midst of doing this, you'll undeniably find clothing and other items that you no longer use. 

Therefore consider donating some items, because you can deduct them on your upcoming tax return.

Tax Attorneys

Depending on your particular circumstance, you may owe taxes for the upcoming season. For instance, as a private contractor, you have to set aside a portion of your income to pay in taxes at the end of the year. 

If you fall under this category or if you want to ensure that the process remains error-free, consider the possibility of hiring a tax attorney. Tax attorneys can help you to:

• Reduce your tax burden
• Establish a savings account for the sole purpose of accumulating money you think you may have to pay.
• Estimate how much you may owe and develop a budget that enables you to set aside a portion of your income to take care of said obligation.
• Maximize itemized tax reductions.

Lifetime Learning Credit

If you're in college, there's no reason why you shouldn't take advantage of the Lifetime Learning Credit (LLC). If you're currently in school and claim the Lifetime Learning Credit, you can get a tax return of up to $2000.

Dependents

If you recently became a parent, you need to gather information on your dependents so that you can include them on your tax return. In order for you to claim a dependent, you need the social security number and name of said person.

Every year, millions of taxpayers wait until the very last minute to file their taxes simply because they failed to organize the necessary paperwork beforehand. 

But, by preparing for the upcoming tax season way in advance you can submit your return as soon as possible which provides you with several benefits such as getting your refund faster as well as extra time to pay taxes in the event that you owe.

4 Steps Seniors Should Consider When They Want to Downsize After Retirement

Downsizing is a great way for you to simplify your life and potentially save yourself some money, but that project is easier said than done. If you have recently retired and are ready to downsize, then you need to come up with a long-term plan that is going to streamline that process.

Cleaning

When it comes to any move, decluttering is always going to be one of the most important steps. Spending a little bit of time cleaning up your home and the rest of your property is going to make each following step that much easier. 

If you own the home and plan on selling it, then you might want to consider getting it professionally cleaned as well. Professional cleaning services are very affordable, and they could save you quite a few hours of work and get a deeper clean than you might be able to get.

Categorizing Your Belongings

Once your home has been cleaned, it is then time to begin the process of categorizing all of your belongings and decluttering. While that task might seem daunting, you can turn each room into its own separate project, going as quickly or as slowly as you need. 

As you go through your possessions, you should break them up by items that should be thrown out, given away, sold, and kept.

Finding the Ideal Living Arrangement

After you have gone through your entire home and all of your possessions, it will be much easier to determine exactly what kind of new living arrangements you are going to need. 

For example, you might be looking for an apartment or condo if you don’t want to deal with a lot of space or yard maintenance. If you expect to have family over regularly, you might want something with a little more space.

Instead of looking for a new home on your own, you should consider working with an experienced real estate agent who understands the local market. 

Explain to them exactly what you’re looking for in terms of location, space, maintenance, and other considerations. As long as you start your search early on, you will have plenty of time to find the perfect living arrangement.

Preserving the Items You Want to Keep

Even if you are able to get rid of a sizable portion of your possessions, you will still probably need to put at least some of your belongings in storage. 

Many people are surprised to hear that quite a few everyday items require climate-controlled storage so that they don’t become damaged. Luckily, those units are often fairly inexpensive if you sign an annual contract.

Older adults who are getting ready to retire and downsize should try to start this process as early on as possible. Downsizing is going to be easier and less stressful if you take the first steps a few years before you plan on retiring and moving to a smaller residence.