Topic: Best Investment is currency most safest and you get asset with use case (Read 209 times)

Depends on the currency. If you are talking about the normal ones, then I think they are only good for trading due to their limited volatility but if it is the volatile cryptos, then yeah. There are still a good number of them, so we must still inspect and choose wisely first.

There are decentralized cryptos and cryptos are digital, so space is no problem no matter how much money you put in here. This also makes them secure, in a way that the people outside or on our nearby won't see them but if let say they have a physical appearances, I think that can lessen their positive impression.

Another reason on why they are the best is the fact that they are currencies, so we can also spend them easily just like a normal currency. This is something that a regular investment asset can't do but before we can use them, we need to convert or sell them first and that can still take time. Indeed that fluctuation in fiat is tied in inflation but fluctuation in cryptos are more than that.

One example is the demand and supply, the news, fear and greed index, and so on... If about profit making, we can achieve it by selling at the pumps and not at the dips but selling at the dip might help us to save the value of our investment.

In the end, whatever currency you're using or saving, they have all lost much of their value for the past years and decades. Notwithstanding their volatility, the movement of their purchasing powers has always been downward. That itself is enough reason why currency is far from being the best investment.

Worse, that they've continuously shed value over time isn't even a discrepancy; it's a design. So I don't understand why we even come up with this idea that currency investment is the best and safest. That seems ludicrous.

My country's currency has lost over 70% of its value over the past ten years. People who kept their money in banks in our currency were the biggest losers. Those who held their savings in dollars had a better advantage in avoiding inflation. However, the introduction of cryptos has given us a better option on how to hedge against inflation. That's why even with the restrictions placed on crypto in my country, we are still one of the highest users of the currency.

I am quite surprised to hear that Afghanistan's economy has been doing well since the Taliban took over. Maybe you have a first-hand experience of the happenings in that country. But from what I have read in so many newspapers, the economy is going bad. Many businesses have been closed due to religious reasons, and they have been sanctioned by some Western nations. A country under sanctions might not be able to grow economically, unless its leaders have other means of improving the economy.

Well, Hold of currency matter on many things and we can not hold that by seeing only one side. We should see many sides and if we want to invest to invest in anything we should have enough know about that. Always read the books and newspaper and always tough with social media and then you can judge that what path is good for you. In my country, Dollar is powerful, So I give priority to invest in dollar in comparison to local currency. Our local currency has no value and it is controlled by IMF.One country should create their items if they to want to get progress but our country is not like that and our export is very small and import is very large and as a result we are poor country. One country should create their items if they to want to get progress but our country is not like that and our export is very small and import is very large and as a result we are poor country.

You're right when you say the Best investment is currency in the aspect of getting assets, yes you can decide to invest in any currency be it fiat, USD, Bitcoin and so on and overtime you'll definitely see the profits that follows after but it depends on the fluctuations rate of the currency's which is due to inflation that has been a greatest challenge to the investment rate, sometimes as the markets becomes flexible you may tend to buy some currency's at cheaper rate and sell when you approach a dip or a favourable markets condition at higher rates and gets enough profits that can amount to generating more wealth and assets as well .

I think it should depend on where you live. There are some countries whose currency is getting stronger against the USD from time to time and others are getting weaker day by day. For people like me who live in a 3rd world country where mostly the local currency gets weaker against the USD yearly, it is profitable for us to invest in dollars and wait for further inflation.

But for people who live in a country that is developing and their currency is getting stronger against the USD, holding their local currency is more profitable for them. Afghanistan has been doing pretty well since the Taliban took over.

No doubt the USD is one of the strongest currencies but one thing I have come to realize is that no currency cannot be affected by one or more factors. And one nemesis of currency is inflation. It doesn't do anything good to currencies. However, the USD has been strong enough to not be affected that much because it is still risky compared to to other countries' local currencies. This means the USD is strong enough to be immune against inflation, yet it is still affected on a small basis.

Holding dollars in a long term can increase the chances of having profits. But just like you said it is not a guarantee. However, in my country, it is best if one can hold onto the USD for the long term because the value of USD to my country's currencies is increasing significantly. That means it is a good investment for people in my country.

The USD has seemed very strong compared to other currencies lately, but now that the Federal Reserve has started its rate-cutting, it is beginning to stagnate. What this might ultimately mean to you is netting some short-term profits by selling at the right time, but you really never can tell how currency is going to move. Inflation, world events, and economic policy make the value of currency fluctuate, so it's not exactly as safe as it might seem.

I think that even holding onto dollars does not guarantee long-term profits. Due to inflation, the buying power is eroded, and although the dollar increases in value against other currencies, it can actually be much lower in real purchasing value because of increased costs of goods and services. This does not mean currencies cannot be lucrative; they involve risks, just like any other investment.

lets say you are american and had $20,000. and were going to buy 4 "asset" of $5k each on october 1st 2023 and sell them on october 1st 2024

lets see which earned best results for a years investment
          2023      2024
gold: $1848     $2663
BTC: $27974   $62040
EUR:  $1.06      $1.11
GBP:  $1.22      $1.33

$5k of gold gets 2.70ounces in 2023 which when sold gets $7,205 in return(<45%)
$5k of BTC gets 0.17873740 in 2023 which when sold gets $11,088 in return(<122%)
$5k of EUR gets 4,716euros in 2023 which when sold gets $5,235 in return(<5%)
$5k of GBP gets 4,098pound in 2023 which when sold gets $5,450 in return(<10%)

so it seems forex trading is not the best

My old professor of Economics said once that investing in currency is too risky. I guess that he said that because he believed that the value of the pairs change too randomly, so it is more difficult to predict the outcome compared to other tradicional markets like stocks, commodities or real estate.

But he didn't know about cryptos at that time and how volatile they are so if he had to choose I guess that he would've chosen fiat instead

In my opinion gold is the safest investment. the supply of gold is limited, theres always demand for gold like jewelry and electronics. Gold has historically been seen as a hedge against inflation, as its value can rise when the purchasing power of fiat currencies (like the USD) declines. During times of economic uncertainty or geopolitical turmoil, investors often turn to gold as a safe-haven asset, which can drive up its price.  Unlike stocks or bonds, gold is a physical asset that can be held and stored. This can provide a sense of security for some investors. supply of gold is limited, on the other hand for USD or other currencies they can be printed as much as the goverment wants

You are right the safe investment is the asset that has a use case, that is why i was always saying that meme coin has a big risk because they don't have a use case and its price is only driven by the hype from the community so it is not safe but for now i see a lot of meme coin that appeared with good profit i see a lot of tap to earn project on telegram app and they launch successfully it is not bad to invest in meme coin but you need to set a limitation for good.

You are absolutely correct that fiat currencies can be a profitable asset class when bought at the right time and sold at higher value, The key advantage in currencies trading is their vast liquidity. However, it requires expertise in analyzing technical indicators/charts to accurately identify the timing of buying and selling along-with risk and money management skills. Moreover, it is also associated with risks such as, exchange rate fluctuations, change in interest rates and devaluation. Therefore, it requires careful analysis of market and understanding of market trends to mitigate the risks.

Your review gives a view of the currency business as a source of funding. There is a big volume of liquidity in the currency. Make it accessible to trade. But then, timing is everything. Trading up on a slow acquire and trading down on a sell is very profitable. However, trying to foresee directions in exchange rate movements is the problem. The example you gave when you were referring to earlier historical periods illustrates the point of considering going back in history to understand interest rates. This is even more so when investment returns are sensitive to economic indicators. geopolitical events and market confidence. The other aspect to consider includes the real influence that inflation imposes on purchasing power. Even though nominal values of the currency rise, inflation is bound to reduce real purchasing power in the long term. Accurate valuation of your actual profit through a comparison of current and historical exchange rates. This will provide a clearer picture of a profit or loss.

The currency is best asset If buy it on right time and sell it with good profit later.
Unlikely Investment in company or other things like assets the currencies large liquitity pool globally can be best way to invest for good profit and it's safe and Im sure rich people bought the dollar early and sell it when price of dollar high.

significantly based on those earlier rates.
Conclusion on Profitability: Given that currency values fluctuate based on numerous factors including market demand and economic indicators, determining exact profits requires specific historical data points for comparison.

In summary:

Selling $5000 today could yield approximately 4700 EUR or 3900 GBP, depending on current exchange rates.
Early investors may have benefited from lower nominal prices but must also consider inflation’s impact on purchasing power over time.
Final Answer Selling $5000 today could yield approximately 4700 EUR or 3900 GBP, depending on current exchange rates.

Exchange Rates Over Time: The USD has fluctuated against other currencies like the Euro (EUR) and British Pound (GBP). For example, in 2003, the exchange rate was approximately 1 USD = 0.93 EUR and about 0.63 GBP. Fast forward to recent years; as of October 2023, the exchange rate is roughly 1 USD = 0.94 EUR and around 0.78 GBP.

Inflation Considerations: Inflation affects purchasing power over time. The Consumer Price Index (CPI) indicates how much prices have increased for goods and services in the economy. Over the last two decades, inflation has generally eroded the purchasing power of the dollar.

Investment Perspective: Early investors in dollars would have acquired them at lower nominal values compared to today’s standards due to inflation and changes in economic conditions. However, it’s essential to note that “cheap price” can be relative depending on what you are comparing it against.

Calculating Potential Profit from Selling $5000

To determine how much EUR or GBP you could make from selling $5000 today:

Current Exchange Rates:

For EUR: If we use an approximate current exchange rate of 1 USD = 0.94 EUR:
5000
USD
×
0.94
EUR/USD
=
4700
EUR
For GBP: Using an approximate current exchange rate of 1 USD = 0.78 GBP:
5000
USD
×
0.78
GBP/USD
=
3900
GBP
Profit Calculation: To assess profit, we need to compare these amounts with historical values if you had sold them at a different time when the dollar was weaker.

If we consider a hypothetical scenario where you bought dollars when they were worth more against these currencies (for instance, if you had exchanged $5000 for euros back in early 2003), your returns would differ significantly based on those earlier rates.
Conclusion on Profitability: Given that currency values fluctuate based on numerous factors including market demand and economic indicators, determining exact profits requires specific historical data points for comparison.

In summary:

Selling $5000 today could yield approximately 4700 EUR or 3900 GBP, depending on current exchange rates.
Early investors may have benefited from lower nominal prices but must also consider inflation’s impact on purchasing power over time.
Final Answer Selling $5000 today could yield approximately 4700 EUR or 3900 GBP, depending on current exchange rates.