Topic: Bitcoin can save you against inflation if you invest in & hold it some years (Read 438 times)

I have read enough of similar remarks on this forum and outside it but the truth is that Bitcoin will not do more than its capacity. Fine, Bitcoin is an asset and just like any other asset, it can help us make money, but are you guys not considering the current price of Bitcoin as a discouragement for hedging against inflation? If you've not been considering it, it is high time you start because it is a smart move and it shows who you truly are for being slack about it. We should not mistake this, that those who struck Bitcoin when it was at a very low price are the bosses now, they are the lucky ones who can have the advantage of Bitcoin to the fullest.

But those who are now striking it at high prices will not only make a small amount from their money but they are still risking their capital too highly. No one knows tomorrow, and can you imagine buying Bitcoins at $70,000 and in the next 5 years seeing them at $65,000? Do you think it is not possible? Then if you think so or do not use the current happenings around it where it lacks liquidity to launch higher than the current ATH as quickly as possible as a possibility, then something is wrong somewhere.

Bitcoin will not be buying automatically as many of you thought, especially when it is now in the mainstream of the financial market, it will have to behave more like a reasonable asset, unlike before.

In just 8years that is how cheaper the houses using bitcoin and this will never happen if you will just invest
your money in banks or other businesses that may generates you smaller income.

Kudos to Bitcoin that we can see the lights now for trusting this best currency ever created thanks Satoshi .



while the increase of Bitcoin value made it to hundred times over the last 8 years.

I think, those that took this decision some years ago to saved some huge amount of capital to purchased Bitcoin when the price was very low in the market and hold for long period of time before they release the Bitcoin early this year, it brought a huge amount of income that helped some of those long investors to achieve their houses in my environment. Based on what investors are achieving from Bitcoin investment these days, it will be difficult for them to experience this inflation that is causing citizens not to survive with their salary, because the price of commodities has increased higher in many countries. I have made up my mind this year to purchase Bitcoin and hold for long period of time, because I have a big target to achieve in five years time which I need to spend the huge amount of funds on Bitcoin and hold for the price to increase to $200,000 before i can trade to achieve my target
.

Bitcoin or altcoins, they are all risky investment choices for your portfolio but Bitcoin is safer than altcoins. Risk with altcoins is bigger than risk with Bitcoin, first because of capability and dedication of their founder, developer teams on project developments; centralization of those projects and blockchains; fundamental risk from their protocol.

Proof of Work has less risk than Smart Contract and big PoW blockchain will less likely be attacked, reversed than with Smart contracts or PoS blockchains.
https://howmanyconfs.com/

I am always skeptical on security of Smart contract and PoS blockchains.

You don't invest if you don't see risk from inflation and its effect on your wealth. Because you see risk of inflation and its impact on your wealth, you find chances to invest your money, to be less affected by inflation. You don't ignore inflation even you are a Bitcoin investor.

I don't think that actually, even when I started here in this bitcoin industry. All I know is that Bitcoin and other cryptocurrencies are a good opportunity. We know that BTC is good for long-term investment. Of course, when you make money with Bitcoin, that means you don't notice or think about inflation.

I just don't know if others think the same. Although I believe that Bitcoin can save us from financial problems because it has given a lot of help to many others who have succeeded and been successful in this field of the Bitcoin business industry,.

Investing in bitcoin has nothing to do with inflation. Bitcoin is not use to buy things now so how does bitcoin fight inflation. And those who are saying this should rethink and understand what is bitcoin and the causes of inflation and check if bitcoin is even involved. If you invest in bitcoin then you can only save your funds in the ecosystem so I don't know why the Op brought such a topic. And not everybody have the money to invest in bitcoin and hodle it for the long period but id they can then no problem.

This is true because when you save in Bitcoin you can also benefit when the price of Bitcoin is rising, Bitcoin makes saving very profitable. If you are saving fiats you would not have any benefit from it but if you save Bitcoin you can have a benefit. Saving in Bitcoin is also like investing in Bitcoin because you are doing the same thing. Bitcoin can help you stay safe against inflation and other customers investment that will multiply your money can also help you. Any thing that adds to the money that you already have is very good because inflation is one thing that we will be having as we depend on fiat as our main currency in the world. You can have an early retirement if you invest in Bitcoin and hold but we have to diversify our investment into other investments in spite of investing in Bitcoin.

Cryptocurrencies in general and bitcoin in particular are highly volatile assets, they should be considered an investment and not a savings. And in investing, we can make profits but we can also lose money, there is no guarantee that investing in bitcoin will always bring profits. Have you thought about the scenario if all your savings are bitcoin and you need money urgently while bitcoin is down 50%, what will you do if you have no savings?

Except for countries with hyperinflationary economies, currencies like the USD are not eroded by inflation at 5%-10% per day, per month. Meanwhile, if you buy bitcoin at ATH and bear season suddenly comes, you have to hold for many years and the value of your assets gradually declines. So don't use the excuse of inflation, and risk investing entirely in bitcoin without any short-term savings.

I think that's a very good advice from op, actually I think op forgot to add one thing which is using DCA method so as to enable us use the remaining one to sort out our bills. because if you invest the whole of the money definitely you most sell your bitcoin because challenges might come from any angle, this is why is very good to use DCA method more especially those Investors who has a job, so that you won't find it difficult to hodl your bitcoin for Long term.

But you must be careful to holds Bitcoin because we knows that Bitcoin can go to anywhere. Many people trying to saves their Bitcoin but they are not ready with the volatility and makes them panic and in the end, they sells their Bitcoin in a lost. But for those who already had many experiences since a long time ago will uses Bitcoin to save their money value in Bitcoin. They see that Bitcoin can gives more benefits than just saving their money in a bank. They can makes a profit from Bitcoin after few years they keeps Bitcoin in their wallet. Those who already see what happens in 2021 ago already invest in Bitcoin and now, they sees their profits comes to them. They just waits for the new ATH for Bitcoin price and sell it at the highest price and makes a big profit.

And this is a good example of why bitcoin is a good hedge against inflation. I also remember the grocery cart comparison with how much they were before and now with Bitcoin and how full you can fill it with current's value.

The situation of each individual varied per se. Some may be able to save and invest some while those that are obliged not to save the least that they can, won't be able to do it.

But those that are inspired and determined will do something like working for some hustles and the profit there will go to their Bitcoin savings plan.

LoyceV confirmed that the price of houses is correct according to index


This has confirmed that there is inflation everywhere around the world. The rice of everything is going up when compared to some years back while the price of Bitcoin is going up as expected, this simply means that Bitcoin investment can save you from inflation. Therefore, instead of leaving your savings with bank, buy Bitcoin instead and stand a chance to buy what you wants to buy in the future because Bitcoin will store your value.

Bitcoin will actually save our money from inflation because the price does not go up the who aim will be defeated against fighting against inflation will fail. But nevertheless you can not predict when the price will go up, either way round the price will surely go hope that is one interesting futures about bitcoin no matter how the price is down if the investor can exercise patience. Because the way bitcoin works the market can not  be always predicted and anything can happen anytime. Yes bitcoin’s as the fastest growth and the same time their could be deduction in the market. Gold is also a good investment. Because before time gold as been their and people value gold a lot and some countries even use gold in their foreign reserves, it is also very reasonable when you consider gold too. Gold as a slow price movement compared to bitcoins. Both of them have their advantages and disadvantages both bitcoin and gold. When it comes to bear market that bitcoins experience. Gold does not fall that way and the same time it does not move up that way to. So both of them have their market movements it now depends on the way you want to go for.

Bitcoin has always been a solid hedge against inflation from the on set and anyone just realizing this now is late to th3 party but there's still time to salvage the inflation problem that has eaten up most of their funds. As debt goes through the roof and inflation continues to bite harder, Bitcoin and crypto will provide the only solution for escaping the global hunger and poverty that is about to hit the world economy. That's why I know that Bitcoin has more room for growth.

I don't think the point is there, buddy. Not that we have to buy bitcoin directly with a certain amount at once but indeed the prospect of bitcoin is still very good to think about if we are not yet in this investment.  The development is quite pronounced where for now and a few years ago the price for a house when compared to bitcoin was quite a difference but for today we only need a few pieces to get a habitable house.

But that does not mean we have to use our bitcoin for a house because it is optional depending on our thinking, it's just that the probability and prospect of bitcoin is very good so that we should be there as much as possible if we have more money. In addition, we also don't have to buy directly with a large amount because in the end we can also buy as gradually as we can even though the profit level may not be as big as expected but when we consistently make purchases then when collected even though the origin is a little clear it will be more than we expected the most important thing is that we are ready with all the consequences and ready with the time we have to sacrifice to achieve that.

@OP, You have already stated how you doubt the accuracy of the image you provide, but the honest truth is that Bitcoin can help with inflation.

Take, for example, when Bitcoin started in 2009, the first price for Bitcoin in the market was $0.0009, which was made possible by Martti Malmi according to history. Back then, if you had $1, you could purchase 1100+ bitcoins, but today, you will need $60+ to get a 0.0009 bitcoin fraction. Funny right? Who knows? In the future, BTC0.0009 might be worth $6k.

I have laughed so hard from your sarcasm and wit. Well, I totally agree that Bitcoin is a strong hedge against inflation and it is true when you say one should include Bitcoin investment in their portfolio.

Every cent invested in Bitcoin will obviously worth more in the nearest future, because whether we like to agree or not, there's a financial evolution ongoing currently and everyone who intends to get out of poverty and join the elite class of wealthy billionaires, should heed advice and invest in the currency that is world renown and remain a key to financial freedom in the nearest future.

Invest in Bitcoin now and save yourself from further poverty later due to rise in inflation and national debt.

yeah it's true to some extent but it's very difficult to spread this kind of awareness among the people that really deserve these kind of investments in order to upgrade their standard of living.

People are actually in a trauma of the scams that hit them while people were involved in scamming through trade. So we need to make people aware of the fact that there is a way of online earning and not all the things are a scam.

Really good piece of advice, better that you learn not to trust centralized exchanges as a beginner rather than learn it the hard way later on which is the likely thing to happen when the exchange gets hacked or they decide to run away with all of your money. I was like that person too back then but then the time when a lot of CEX were attacked by hackers that I got concerned that I might not see my bitcoin or any cryptocurrency again if I continue and now, I'm only using CEX for when I need to sell some of the cryptocurrency that I have especially if it had grown into something that would give me huge profit, it's mostly for P2P for me now and to all newbies that are still researching about the things that you need to know about investing in bitcoin or any cryptocurrency, heed what @Plaguedeath is talking about and you'd know that it's for the best as time goes by.

Now about the inflation part, I can attest to everyone here that bitcoin is definitely a good investment to have to protect your finances against the inflation, I've seen with my very eyes how huge the growth of the value that my investment have come because the inflation rate in my country is rising too fast and so high right now.

We must plan early to enter bitcoin investment before your old age is approaching then the usual work is no longer productive, while there is still a pretty good income every month then it would be good to set aside for bitcoin and with the DCA method is the best way to do it.

I will not keep too much fiat because it is certain to be subject to inflation especially if you have a lot of fiat and stored in the account we can see the graph is quite a difference.

The price of bitcoin will continue to rise every cycle, I am optimistic that bitcoin will become a mainstream asset to be used as a future investment or retirement fund or education for our children in the future.

well, owning bitcoin might save us from inflation because only it goes up continuously. I hope the price can be higher than the current price. Apart from saving from inflation, bitcoin even has very fast growth compared to other investments. Investing in gold can also save us from inflation, but the price movement is a little slow, meaning it will take us quite a long time to feel the benefits of gold. However, if we look at the price of bitcoin 10 years ago, then the current price is really fantastic and I think there is no harm in holding bitcoin in the long term.

Yep, I had to reread the post because I was misunderstanding it but I didn't bother to change my post because I want it there as a reminder for me. I totally agree with you, the more the years come by and the more the price of bitcoin becomes more higher and the cheaper that the houses would look when you want to buy them with bitcoin.

It's just a one time thing and they haven't done anything so far, hopefully they really did invest now and that they're just not talking about it but I doubt it given that they pretty much was asking how to invest in it but now they don't talk about it. I already did my part so hopefully they also do their part, I think it's a bad idea to not be investing when you're just relying on your salary money, it's a good time for some people to be finding ways that they can save money in the most efficient way, piggy bank savings is just not cutting it anymore in this economy.

It’s nice that you are suggesting investing in bitcoin to your co-workers possibly friends and family as well. But personally I wouldn’t want to suggest it anymore especially if they do not want to listen anyway. I will just be wasting my energy and effort in trying to make them understand.

That's what I've telling my co-workers in a while when they ask about bitcoin, that's it a good hedge against inflation and the only way that they can save themselves from the ever increasing inflation and the rampant price growth of the goods and services is if they start investing now albeit slowly so as to make sure that they're not being too greedy but still making some point into investing something. Probably that's the only thing that you should do with bitcoin, trading should be left to the altcoins and such. I think that it's really stupid for anyone to not invest now when all the stuff about bitcoin growing through the years is already an evidence that it's a safe asset to invest into despite the arguments that the market is so volatile, that volatility can easily be remedied by having the patience to wait things out.

If nothing else, the graphical representation of the OP is quite interesting. If somehow true in some parts of the US, then, I would say, a lot of people will be convinced in trying their hands on crypto market. Such comparison is a very good one to attract one person to check out btc. However, one should not force anyone to go into this market, they should be willing to educate themselves about the risks that come with this volatile asset.

This is also one of my reason why I am putting my savings in crypto, the value of Fiat keeps on decreasing because of inflation, the money that we have now or the amount that we could buy would surely be lessen in the future.
But if I would put it in crypto it could also give me a profit by holding it, and could save me from inflation.

First of all, graphic is VERY realistic, depends on where you are though, USA is as big as a continent, meaning that something that happens in Florida, may not happen in Nebraska, they are different places, a rural and urban area house will have different results as well. But if we are talking near Manhattan type of New York, or Bronx/Queens then we can see that it did grow to be like that.

I have seen houses that worth 300k become 450k in the past 5-6 years, so it's quite close to this. I have never even been to America in my life, so I am not saying I know this, I just like real estate so I check it for fun at times. And bitcoin prices are a fact, so when you combine these two data, then it's true that you are right about this.

Bitcoin is now moving into the mainstream financial world. Pretty soon you will be stupid not to own any. I don’t think there has ever been an asset like it. I would not feel comfortable not having any exposure to Bitcoin in my portfolio. Inflation is a very real threat to our purchasing power, Bitcoin is the perfect antidote.

Either of it all, i know that bitcoin is more preferred when it comes to asset of investment than any other physical form of assets which we have been used to like real estate, this alone requires for maintenance annually and you don't have to go through any unnecessary stress with bitcoin investment over any maintenance challenge or go through a centralized authority before you could invest or use a wallet for it, bitcoin is all we want to have financial economy dreams achievable to our benefits.

Yes. Even though bitcoin is volatile I still think it’s a better option than just a saving your money and letting it lose value over time. It’s also a much safer way of saving, in my opinion, in terms of where to save it.
It’s still important to have some cash on you in case of emergencies. I always leave out some to make sure that I have something to pull out when in need.

The point is not the debt they are handling, the point is the demand of USD. Unless the demand goes down and another currency become a global currency they will keep on increasing the debt threshold.

Everyone here knows that the global currency is USD, even Bitcoin is valued on the basis of USD and the biggest stablecoin is pegged to USD , then why you want to question the existence of USD and then compare it with inflation.

Regardless of how we think Bitcoin is for financial freedom it is still not more than an asset. It will remain as an asset which can make an individual or a country powerful enough to question the USD dominance.

Do you think saving in Bitcoin is a better hedge against this kind of economic uncertainty? How do you balance traditional savings with Bitcoin in your investment strategy?

lol you meant 2003, not 2023. National debt tripled over the past 20 years, not in one year lol

But that graphic is pretty amazing. Simple graphics like that are probably the best education to make people start getting interested in learning about Bitcoin and stop thinking its some sort of scam.

That chart is very accurate but to be honest, it doesn't take the highest prices of the year but still very correct and in touch with reality. In 2016 I suggested my parents to sell the house and buy Bitcoins but since I was a kid at that time, no one took me seriously, no one took me seriously in 2020 and today I no longer live with the family because they prefer hard work over smart work. People still can't understand how much they missed when they didn't buy Bitcoins years ago and even months ago. Bitcoin is one of the best assets because it's the future of money.

I agree that investing in bitcoins is a very good decision, but if you invest the money you are buy a house in bitcoins, you may be at risk. Because there is no guarantee that Bitcoin will always increase, I am optimistic that the Bitcoin price will continue to increase in the future. If you have invested in bitcoins and if you want to withdraw your money from there for planning to buy or build your house then you can withdraw from there and transfer to bank no problem. But if you invest in bitcoins and want to complete the construction of the house, you may spend extra money, if the price of bitcoins falls, then a part of your surplus will go to the extra spending sector.

Its true that bitcoin will help a lot of people if they will just explore, learn from it, and invest in it, but the word you chose or statement is that people will be saved in the inflation rate if they will invest in bitcoin and hold it for some years. I get it and know it that, in order to maximise the profit of bitcoin, the good option is to hold it and wait for bull runs or bullish events, but for others that couldn't wait for a year, that will be impossible for them, for example, poor families who can't even have money to eat twice a day, so they will need to invest in bitcoin and wait for years in order to survive. What I'm saying is that bitcoin will definitely make you wealthy if you do it right, but of course it depends on your situation in life. You should work on living first in order to focus on investing in bitcoin. 

What you mean in short is that bitcoin is a speculative asset. I found that to be true but that is how life is because people are speculating on a lot of things including gold. With how the world is right now as they have embarrassed bitcoin, the price by the next 10 years is going to increase and another of this kind of posts might be posted at that time if this forum is still existing by then.

High bitcoin withdrawal fee on the exchanges is a disadvantage. Lightning network for small amount is good while normal cold wallet for the huge amount is good.

And make sure people who want to start DCA-ing Bitcoin should invest in the right place i.e. non custodial wallet.

Most people use centralized exchange as a place to hold their coins because they think it's safe and cheaper, but if one day the exchange went bankrupt and they can't withdraw their money, they will lost all of their hard earned money.

It's just a possibility, no one knows the future and what it may behold, and we speculate based on the occurrences from the past. Though we know it has the potential, what if Bitcoin doesn't gain much value in the next decade? I mean, it's possible, that there might be a lot of uncertainty and instead of extreme adoption, we may see lows and highs which will keep the price fluctuation within a certain range.

So even though it can be a good thing to save money in Bitcoin, one should be moderate when they are doing this and should only save what they think is what they can afford to see losing value in case that happens because you can't expect only upside movement when an asset has a volatile value.

There is nothing wrong with having expectations, but the expectations should be backed with practical thoughts and no imaginations.

Well said instead of saving our money in fiat or bank account more especially those who are planning to buy a house, is very good to Invest it in bitcoin instead of saving it in the bank, because as time goes on that's how it keep increasing. but for bank instead of your  money to increase it will still reduce, sometimes due to the charges that bank normal takes, even if you don't have a decent job that is paying well you can still use DCA method before you know you have accumulated a lot.

You can hodled based on your financial level or strength. The advantage of Bitcoin is that you can buy with any amount you have over a long period. Many people who don't have bulk money to buy can use DCA to accumulate. Also OP just used the US as an example, houses are much cheaper in my country. With less than $15k one can own a good house in my location.


You just spoke my mind @_act_. The worst victims of this inflation are people who keep their money in fixed deposits or savings accounts for many years. In a few years, inflation will make the money worthless. It will be even better to invest in a house than keeping money in banks. But I agree that Bitcoin is a better hedge against inflation but we should also take note that nothing is certain.

And the truth is that bitcoin is also considered an investment choice, it does not always receive the trust and support of everyone.

Before inflation, we also know many options, but for those who do not have access to financial economic knowledge, they will not bother much.

But I agree that accumulating bitcoins (at least for now) is more profitable than any other asset, but they still have risks that we don't want to talk about. Anyway, in terms of life, we all want the best, whether we choose bitcoin or not, each person should be responsible for their own behavior in life. In the spirit of supporting bitcoin, I encourage everyone to learn about it and then be able to decide for themselves.

Your analysis would have sent a better message if you had reduce the value you're using in making your comparison between investing in Bitcoin and going into real estate investment. On a more practical bases, most of us here might not even be able to accumulate up to 3BTC after we've invested for years and seeing analysis as this, it's going to be very deficult to relate with it to be honest.

But that being said, real estate isn't a bad investment choice just like the way Bitcoin isn't, each of the investment choice has her merit and demerits and the decision to invest into Bitcoin or real estate investment most cases is controlled by which of the option one is exposed to and can work well for you based on your level of knowledge and want you want to push your funds into. The main advantage I see that Bitcoin has over real estate is that with Bitcoin investments, you get to invest bit by but and overtime you get a groose investment that's good but when it comes to real estate, it's not possible to invest $30 at regular intervals and expect that it will work well for you. In most cases, the initial capital you need to get land and make payment for all the legal stuff is much more than what you will even need to do a six months DCA that will even pay you well in the long run. We can just say that Bitcoin allows but the rich, the poor and the average person to invest into it and still make good profit out of his investment while real estate on the other hand favours mostly the rich.

This is not about having the amount of money that can buy a house and use it to buy bitcoin. House is just used as an example in the OP just to let us know that bitcoin is an asset that can be used to hedge against inflation. It can be used instead of saving dollar or fiat in your bank account, you can buy bitcoin instead and hold it. According to the image in the OP, he is comparing bitcoin and fiat, that fiat is an inflationary asset.

The housing price is correct, based on the House Price Index. But don't make the mistake of thinking you can extrapolate historic data with certainty: Bitcoin's price development wasn't certain in 2016, and it's not certain now.

Not every have that kind of money so even if you want us to hodl bitcoin, it would probably take many of us a long time before we can see our bitcoin going up in price and by then, the price of a house and lot would be at such an astounding levels that it's probably not worth it to buy anymore and just continuing hodling. I can see why it's a good scale too, it just shows what would happen when you invest in bitcoin and you accumulate and hodl for the long-term, it's just that profitable to have bitcoin in your possession that it would be stupid not to buy now even when you're at a loss temporarily which always happens when you're invested in bitcoin, it's a volatile market after all.

Price of a house in the USA, I don't know how accurate this graphic is.

The USA. national debt is $34T today and it was only about $10T in 2023. The national debt increases 300% within one year, it's amazing 'success' from government and central bank in the country. It won't stop there because the debt ceiling will be raised again next year.
https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/
https://www.pgpf.org/national-debt-clock

You can try to save your money from your jobs in bitcoins and prepare for your wealth and retirement earlier than if you work days by days without bitcoin in your savings and investment portfolio.