Bitcoin the inflation killer :-> - page 4.

Binugon

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Quote from: Kakmakr on September 20, 2018, 12:58:27 AM

In my country the inflation rate averaged between 1% to 3% per year over the last 5 years. So whatever investments I had to make, I had to beat inflation for me to say that I am moving forward.

I am one of the fortunate people who invested in Bitcoin, when the price was around $400 per coin. Since then I have been smashing inflation on my investments made into Bitcoin.

In 2017 I obliterated inflation and I sold some coins, which was re-invested into other investments that also beat inflation. I can with all honesty say, that I am not bothered with inflation, even if it goes up to 100% for the next few years.

Let's celebrate the fact that Bitcoin enabled us to beat inflation for the last couple of years. Grin

If other currencies experience inflation, then Bitcoin only knows deflation or reduced bitcoin production which makes the value of bitcoin increasingly high, bitcoin experiences what is called bitcoin halvings

snipie

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The main problem for many countries is the devaluation of their local currencies comparing to USD essentially which worsen the economy especially if most of goods are imported. Bitcoin is a good and relatively stable investment if the price keeps at this level.

Kakmakr

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Quote from: timerland on September 20, 2018, 04:00:31 PM

Quote from: Kakmakr on September 20, 2018, 12:58:27 AM

In my country the inflation rate averaged between 1% to 3% per year over the last 5 years. So whatever investments I had to make, I had to beat inflation for me to say that I am moving forward.

I am one of the fortunate people who invested in Bitcoin, when the price was around $400 per coin. Since then I have been smashing inflation on my investments made into Bitcoin.

In 2017 I obliterated inflation and I sold some coins, which was re-invested into other investments that also beat inflation. I can with all honesty say, that I am not bothered with inflation, even if it goes up to 100% for the next few years.

Let's celebrate the fact that Bitcoin enabled us to beat inflation for the last couple of years. Grin

You make a good point about how investment returns should be calculated after inflation adjustment.

I see a lot of people looking at their savings accounts as some way to invest in the long run, while in reality, they are actually losing money from inflation overall. It's also important to note that the CPI index generated by governments may not be reflective of the actual inflation going on.

Bitcoin is a good hedge against fiat inflation given that it's completely independent from fiat and has a capped supply, which essentially means that in the long run, as long as adoption increases or stays the same, bitcoin should hold its value relatively stably. It's these properties that I think make bitcoin extremely useful for those in countries plagued by hyperinflation, as a safe haven to store wealth in.

You know, it is also not just the inflation that are killing most people. The government take their share of taxes from the profits from the different types of investments too, so you need to add the tax onto the inflation, to see what your real profits was. In a lot of instances, people are actually losing money, by investing it in safe investment options with low returns. Shocked

These types of investments, always reminds me of the little mouse, running inside a wheel , in his little cage. You are running, but you are not going anywhere.

Bitcoin returns beats inflation and taxes and breaks out of the little cage. Wink

Rune

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The bitcoin mining system is basically a slow inflation that gets slower with time by the time it stops inflating we will all be long dead.
So i don't really see how it is the inflation killer yet. But its controlled inflation is a lot better for holders then fiat obviously

xuan87

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I doubt it could be said as inflation killer because bitcoin is also not too stable, if you invest in the right time then it could help you from inflation, invest in the wrong time it will cause you losing money, and it's a bit dangerous to try to beat inflation with bitcoin, the price movement is too wild

Gozie51

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Yes naturally bitcoin has no business with inflation or deflation. It stands on its own and economic indicators don't affect it just like fiat which the government can decide to do anything with.

Anyway, the angle I think you are also talking about is , you have made much money with bitcoin that you can get just anything you want despite inflation.

timerland

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Quote from: Kakmakr on September 20, 2018, 12:58:27 AM

In my country the inflation rate averaged between 1% to 3% per year over the last 5 years. So whatever investments I had to make, I had to beat inflation for me to say that I am moving forward.

I am one of the fortunate people who invested in Bitcoin, when the price was around $400 per coin. Since then I have been smashing inflation on my investments made into Bitcoin.

In 2017 I obliterated inflation and I sold some coins, which was re-invested into other investments that also beat inflation. I can with all honesty say, that I am not bothered with inflation, even if it goes up to 100% for the next few years.

Let's celebrate the fact that Bitcoin enabled us to beat inflation for the last couple of years. Grin

You make a good point about how investment returns should be calculated after inflation adjustment.

I see a lot of people looking at their savings accounts as some way to invest in the long run, while in reality, they are actually losing money from inflation overall. It's also important to note that the CPI index generated by governments may not be reflective of the actual inflation going on.

Bitcoin is a good hedge against fiat inflation given that it's completely independent from fiat and has a capped supply, which essentially means that in the long run, as long as adoption increases or stays the same, bitcoin should hold its value relatively stably. It's these properties that I think make bitcoin extremely useful for those in countries plagued by hyperinflation, as a safe haven to store wealth in.

KocaEfe

full member

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If we talk about the financial component of bitcoin, then inflation does not threaten bitcoin in principle. Since bitcoin depreciation is not possible. Because bitcoins have a certain limit 21 000 000. What I can not say for the Fiat money system, which is so arranged that every year the national money loses its value.
If we talk about speculation and profit, which you are talking about, it is very cool that you managed to earn a lot of money. Your investment has paid off.

damberg

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We can beat inflation if bitcoin/altcoin prices rise. Otherwise, we only try to beat breakeven Grin

Generally speaking, unconventional assets tend to bring higher rates of return while facing higher risk.

Kemarit

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Quote from: Kakmakr on September 20, 2018, 12:58:27 AM

In my country the inflation rate averaged between 1% to 3% per year over the last 5 years. So whatever investments I had to make, I had to beat inflation for me to say that I am moving forward.

I am one of the fortunate people who invested in Bitcoin, when the price was around $400 per coin. Since then I have been smashing inflation on my investments made into Bitcoin.

In 2017 I obliterated inflation and I sold some coins, which was re-invested into other investments that also beat inflation. I can with all honesty say, that I am not bothered with inflation, even if it goes up to 100% for the next few years.

Let's celebrate the fact that Bitcoin enabled us to beat inflation for the last couple of years. Grin

Funny you mentioned about Bitcoin as as inflation killer because I also have made significant gains using it to beat our inflation rate here. Last 2 years was worst, ranging from 3%-4% so I'm glad I made the switch in late 2015 (after I've moved out of corporate world). Common sense will dictate that if I have investment my money on banks alone in 2015, I can't cope up with our inflation rate as we have one of the worst in Asia.

Let this be another lessons for newbie investors that crypto is one of the best hedge against inflation. I'm not saying its the best, because there's a lot of investments you can go around, but crypto has become a good leverage if you really wanted to stay above financially and fight inflation in the next coming years. Grin

willramis

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I think what you are saying is very controversial. Yes, Bitcoin by nature is a deflater, but still it is not widespread as the usual fiat money. Plus its legal status is still under question in many countries and jurisdictions. I am optimistic about future of cryptocurrency, not sure about Bitcoin though.

aso118

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There are a lot of investments which have managed to beat inflation, but Bitcoin may not be necessarily one of them. The reason I say that is we do not have enough data. You cannot conclude that basis Bitcoin's price increase in 2017.
Equities, when you look at it over a period of time (decades) definitely has given returns higher than inflation.

Kakmakr

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In my country the inflation rate averaged between 1% to 3% per year over the last 5 years. So whatever investments I had to make, I had to beat inflation for me to say that I am moving forward.

I am one of the fortunate people who invested in Bitcoin, when the price was around $400 per coin. Since then I have been smashing inflation on my investments made into Bitcoin.

In 2017 I obliterated inflation and I sold some coins, which was re-invested into other investments that also beat inflation. I can with all honesty say, that I am not bothered with inflation, even if it goes up to 100% for the next few years.

Let's celebrate the fact that Bitcoin enabled us to beat inflation for the last couple of years. Grin

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