Topic: How Do You Store Value to Offset Inflation? (Read 782 times)

undeniable that bitcoin is truly effective in that situation but honestly, buying digitalized gold is also as effective.
the problem with offseting inflation most of the time is that people can't really calculate the real inflation that's going on, just basing off inflation rate based on data going around will not suffice becuase often time it's just tip of an iceberg.
michael saylor's guide on calculating inflation will definitely help at time like this.
only once we really know how much inflation in our own economy then we can try to build plan to offset it but these days, never expect safe investment to outweigh the inflation because they don't. riskier investment but with significant profit is the way.

This is the advantage of investing in bitcoin even in a state of war, bitcoin is not that complicated in terms of storage, as long as we can store Phase Seed safely then our assets will also be safe, and of course bitcoin is now one of the safest assets to fight inflation, this has been proven over time. This.

If we live in a country where there is war, then bitcoin is the right choice, because bitcoin is easy to store, unlike property and gold which are physical assets so they can be affected by war. but if we live in a safe and peaceful country. Investing in precious metals and property would also be better, because after all we should not focus on one investment but make better use of various investment assets to protect value. Because if one asset doesn't go according to our plan, there are still other assets that can profit.

Lets not forget about Gold. The yellow metal has reached new heights because of the on-going conflicts between Russia-Ukraine and Israel-Hamas. BTC's performed better, but now it's losing value because of market volatility. Gold is much more stable, though. You can also buy and hold Silver as a means to offset inflation. Anything that is scarce and has value can help protect you against the depreciation of Fiat currencies.

If you're smart, you'd diversify your investment into the aformentioned assets for complete peace of mind. I have a feeling this is going to get worse. Especially when we're transitioning from a unipolar world to a multipolar world. Everything's been a mess since COVID-19 took the world by storm. Maybe there's still hope?

Bitcoin is effective to offset inflation, Real estate is also effective and those are the two that I have an experience with and I have used to build some defense for inflation. Real estate is more established and would be more costly but investing in Bitcoin is cost efficient. Holding fiats is the worst form of combating inflation because fiats only does one thing which is losing value but your money in Bitcoin and Real estate keeps appreciating in value. Inflation isn't slowing down as more money are being printed and devaluing the already existing ones. If you don't invest your money, you wouldn't be able to avoid things you could afford before because of inflation.

Bitcoin has an appreciating value because of its limited supply and the room for more adoption. Bitcoin is still a new asset and hasn't reached its full potential while Real estate is an area that'll keep appreciated too because housing is a necessity that we'll always need. As the population of the world keep exploding, house will be in limited quantity and it'll drive up the price. Shelter is one of the needs of the world and we need shelter more than anything else excluding food, so it can't be an investment that goes wrong. As inflation becomes the order of the day so will the prices of house either rental or owning one will keep increasing.

I agree, bitcoin is the safest place from the impact of inflation and any impact including war between countries, I cannot imagine the huge losses experienced in war areas, they have lost their homes, assets, gold, and even their territory has been captured by invaders. From the current war cases we know a lot of things, we know that Bitcoin is the safest place to store assets under any circumstances, we just need to guard the phrase well so that we can access our wallet at any time.

It's not even that about the Real estate, I think Real estate looks more complicated and it's even risky in approach than Bitcoin. You can set up your username and password with verification done quickly on exchange and be able to buy your Bitcoin, withdraw it to your external wallet without any problem, without any scammer attempting to steal your coins unless you are careless and didn't hide your seed phrase or private keys but an attempt to invest in Real estate can make you buy scam investment until you involved reputable person in it.

Bitcoin has help a lot of people to preserve their assets against inflation but I'm bit skeptical how it is going to be hence forward from here. I'm not saying Bitcoin will not pump but the price which Bitcoin has attained today, it will take 2-3 times of the current liquidity of this market to achieve 2x of this market. The more we go and increase the price, I think the more it will be difficult for Bitcoin to help preserved value against inflation in the future.

I can't think of any other better asset to be against inflation than Bitcoin. Even fiat currencies are being down due to it.

Real estate? yes, one of the best hedge but if you're in an area where the war is about to startled. Do you think that it can survive when bombs hit it?

I guess this isn't for all but to those that are in the area that have potential war that's about to come, they need to rethink about it until the war or dispute of their countries and other countries have been settled.

Inflation has been a big topic for the last few years and so far owning crypto currencies or tech stocks seem to have been the best protection against it. Holding cash, bonds or even commodities wasn't such a great investment and you rather lost purchasing power. Gold for example was already on such high levels during the covid pandemic that the inflation rally didn't push it much higher. And still holding some gold makes sense because of diversification and the risk of a big collapse in the stock market. In general I would recommend to reduce cash levels to a minimum and split the money between stocks and crypto currencies. Stocks pay great dividends that will give a regular income and can be used to buy more cryptos.

Certainly someone will choose to protect their assets from inflation either in the form of real assets or other things they invest in and of course they will still protect their assets from inflation and as you said it is very true that most rich people only keep a little cash that they hold and don't will have a big impact on them and for some people who save a lot of money in banks, of course they will really feel the impact of inflation because the money they hold will not decrease, but the value of that money will be different from before inflation occurred and we must be able to follow the example. What do rich people do by turning the money they have into assets so that they are not affected by inflation.

You can obtain greater profits with Bitcoin as it usually goes up by a large margin within a short amount of time. But it could also go down all of a sudden due to unknown reasons. This volatility could prove to be an advantage for yourself if you know what you're doing.

If you want to play it safe, buy and hold Gold instead. I have both assets in my portfolio to help protect myself against inflation. Prices of goods and/or services are rising fast (despite governments saying otherwise). It makes me wonder if central banks have lost control of the situation? If that's the case, we should expect things to get worse in the long run. Just stick to the right strategy, and you'll be living fine. No one can predict the future, so lets hope for the best.

While investing in cryptocurrencies such as Bitcoin can be seen as a good option since it has the potential to appreciate when inflation rises, one must also acknowledge the high risks associated with crypto investments which results from the drastic fluctuation of their value.

Property and gold: the more stable, safer investments. Shares and mutual funds: higher potential returns, but coupled with greater risk. In Indonesia, the preference leans towards the former, each investment has its own perks and perils.

The saying "if you don't know, you won't love" is highly fitting here. In the decision-making process of determining where to store value, it is crucial that one familiarizes themselves with the different investment options. Having acquired ample knowledge on the subject, you will be able to make decisions that are not only prudent but also congruent with your financial aspirations. It's an old phrase: if you're ignorant of a thing, then you can't appreciate it.

Regardless of the option a person may choose to do this, this is something that must be done, after all if you take a look at what the rich do, you will see the majority of them have their fortunes in assets which protect them from inflation naturally and hold very little cash, so when there is an economic crisis they are barely affected by it, while those that have nothing are not that affected either, so it is the middle class the one that suffers the most, as they are the ones that keep their fiat money on their bank accounts and lose the most because of inflation.

To store value and offset inflation, many people consider various investment options. Some people choose to invest in cryptocurrencies such as Bitcoin, as the value of these cryptos can rise over time and can provide some protection against inflation. For example, when inflation increases, the price of Bitcoin also tends to rise, so its value remains stable or even increases.
When compared to Indonesia, people also often choose to invest in property, gold, shares and mutual funds as a way to store value and offset inflation. However, it also needs to be understood as the saying goes, "If you don't know, you won't love", which means it is important to understand or become familiar with the various investment options before deciding where to store value to fight inflation.

I have definitely never seen a bigger and better breakdown of investment than this. Here I am, putting %100 into crypto like a newbie, but to be fair even after seeing this, I am not planning on changing anything. Doesn't mean I am right, doesn't mean I am wrong, doesn't even mean what avikz has is right or wrong, it just means people have personal preferences.

I do hope that I am not wrong and bitcoin goes higher, somewhere 150k or more, that would be great for me, and I hope I invest into some tokens that makes me richer as well and get lucky, but I would never say that I am doing great or I know better than someone else. That would indicate that I think I know better than everyone and I never think of myself like that.

Gold and Bitcoin seems like the most common these days. Inflation is quite bad in most countries when something goes wrong, and I do not mean the ones that have less than 10%, that's very tiny and nothing, I am talking about literally 25%+ ones, and that's terrible. In those places, if you are holding bitcoin that isn't a bad idea at all, I would say it is definitely something to look forward to, and I would not be really that badly considering that as an issue, I would say it would definitely work fine.

The best thing to do right now is to just focus on what to do, and how to get better, we should consider how to get greater return for our investment if we know when to invest at the right time and hold long enough to get out at the peak.

If there is one of the family members or relatives who doesn't care about using their income, I think if we can give them advice, it would be better for us to give them that advice so that they don't have financial problems when inflation occurs, because in conditions of inflation, everyone who doesn't If they have even the slightest savings, of course they will have great difficulty in dealing with this, especially since they only have one source of income, which means they will have difficulty meeting their needs and if they still carry out the same actions in terms of managing their finances, of course this is no longer our responsibility when they have experienced financial problems when inflation occurs.

Imagine if one of those two people was a member of your family - what would you do if you had to give him advice?
Meddling in other people's affairs is inherently bad - but if it's an important part of your life, maybe you should give them some good advice. It's best to keep quiet about things that don't concern you - but advising him is an option if you're the one being listened to.

Everyone also knows that they have their own choices in managing their finances - that's their responsibility, of course. But try to make a good approach if he is a member of your family or a friend - maybe it will change his pattern and lifestyle to think not only for now.

Saying high income maker can't save is a bullshit, those people are choosing their own lifestyle and the way they live. If you find such people, better to calm down and never discuss about money management because they will never want to learn it, except something big happened them.

Different people different character, one is over saver and one is over spender, it's not something we need to discuss because they're happy with their own choice.

Making saving a priority can be hard even for those that have a high income, as many of those fall victims of lifestyle inflation in which every single extra dollar they get is an extra dollar they spend, but this is even more difficult for those that have a low income, since the only way for them to save is to reduce expenses on some key areas of their life, which will bring its own set of problems on the future, and if that was not enough, while saving for a few months is a feasible goal for the majority, to keep doing this for several is years is many times harder, because after those first months people will begin to think they are entitled to spend that money, after all they earned it, and just like that they will stop saving any money which could later be used to invest in an asset which is a store of value.

However - I agree that everyone should prioritize saving. This sounds simple - but basically each of them has their own obstacles in the process. Anyone who has more than one source of income is very likely to save once they have met their needs - but it will be very difficult to prioritize saving when they only have one source of income which only covers their monthly living expenses and bills.

Personally - I am having a really hard time saving money amidst the current bad economic situation. The cost of necessities increases due to inflation, the value of money is unreliable when you can only afford so little. Prioritizing saving will make me reduce many other needs – in fact this is never good for supporting a healthy life from a physical and mental perspective.

Improvements will of course be attempted - but things will not return to normal easily. The world is not even in a good condition when war is everywhere - this will clearly make things worse. Of course we hope for the best - but we have to find solutions ourselves instead of relying on the government.