Topic: How Do You Store Value to Offset Inflation? - page 3. (Read 785 times)

In this case I exclude other Cryptocurrencies besides Bitcoin to maintain value in offsetting Inflation, Bitcoin is the only Cryptocurrency that grows my confidence in facing Inflation. Its ever increasing price offers many advantages when resold. This is very effective in managing finances to prevent its value from the dangers of inflation. Gold and Real Estate are also the best choices besides Bitcoin in maintaining currency value from inflation, the price of Gold and Real Estate will grow over time but the ratio level is lower compared to Bitcoin. My main choice remains Bitcoin, I will share the percentage level of financial ability to invest in different types of options, from 100% of the funds I allocate to invest I will buy Bitcoin, the rest to buy other assets.

Honestly, some fiat currencies aren't doing that bad. The USD has consistently low inflation rate, aside from a couple of exceptions (and in those cases, it still outperformed most other currencies). But that still means gradually losing money, around 3-4% every year. Cryptos are all very different, so I'd focus just on Bitcoin as the leading crypto. I like that it's very accessible: you don't have to buy a lot, you don't have to commit to it (you can always sell), you can store it yourself, and it has high liquidity, so you can make fast decisions if you need to. The rest of the options (stocks, real estate, etc.) seem less accessible to me: they often require a serious commitment, sometimes the liquidity can be an issue, and you often need a very decent amount of money to start.

there are always disadvantage you know even gold current valuation which deemed as something that could combat inflation depends entirely on beliefs that gold could beat inflation while intrinsic value and use case of gold isn't so much, the price derived entirely from speculation without people knowing because its tradition to consider gold as a treasure if things gets worse like war occur its not only bond that gonna be affected pretty much everything in that country gonna be affected and its gonna be tough economy all around, at that point the best investment to make is investment to food and basic needs. maybe if you think the situation could get that worse maybe arable land investment is a good option.

frankly speaking bitcoin is great for investment but only if you are investing from when the price were still low and heavily discounted meaning you invest in bearish cash out at bullish rinse and repeat.
therefore you need the flexibility and lesiure of spending as much time as you can to wait for the right timing.

if I were to fight the inflation though I could just easily invest money to be a landlord so far its the most lucrative way of beating the inflation since the house pricing keep rising but that without taking into account housing bubble which i don't know if it gonna happens anyway.

For the average person who wants to invest with medium risk and reward, it would seem that index funds are the correct way to go - using a global fund with say the top 1,000 companies or in some way diversified across different countries. There will be recessions and there will be peaks along the way, but the best thing you can do is consistently invest over a long term so you capture the best of both. It's when you take an erratic strategy or chase only high risk investments that you fail. As the second poster pointed out, you should try to invest in many different areas, that way if one does badly it could be offset by others that do well.

That is the best case scenario, however what will happen if yet another war or several wars breakout before those conflicts are resolved? This is a likely possibility, and it is not as if the world economy is in such a great shape either, so we could see the markets going down because a powerful country found itself in a major crisis and bring down the world economy with it, so anyone that has not taken a position in an asset that is a store of value should consider doing it now, as we do not know for how long the current balance can be maintained.

That's why it's important to diversify your investment. A little over here, and a little over there will help you minimize risks of loss as much as possible. I think the best strategy is to invest half of your money into Bitcoin and Gold. The former is highly-volatitle, while the latter is much more stable in market price. You can leverage between both assets to help beat inflation.

I'm afraid things will continue to get worse, until the conflicts between Israel-Hamas and Russia-Ukraine comes to an end. Once global stability is reached, the economy will recover. At least, that's what we hope for. Who knows what lies ahead in the future?

True that is a good one, the UK has the highest issuance of inflation linked bonds.   Historically they suffered inflation as high as 30% in prior decades and also have one of the worlds largest economies and also an equally large national debt.   Though the debt is well backed by tax revenue via the economy its still not perfectly safe.

USA has the similar kind of linked debt but both would base their returns off government statistics which are adjusted.   Some would say political bias stops this investment reflecting inflation properly.  Government stats account for technology advancement when including prices which means not all increased prices are accounted for at 1:1 full ratio but are reduced to include the idea products got better.

So if cars are inflation priced into an index they will ignore 20% of a price increase if they judge a car is 20% better then a previous model.   Maybe it has electric windows etc.   For this reason technology has disguised alot of inflation from the gains in utility we have received.

You can still lose money relying on government tracking of inflation.   I've noticed this in multiple ways, it explains why BTC rose overall alongside interest rates rising, part of the price is about inflation.   If I talk about 2021 peak pricing now, I would consider that since 2021 dollars suffered inflation loss, so the price from 2021 cannot be directly compared to 2024 pricing or the peak we see now; its all distorted.

Bitcoin's risks lie not only in knowledge but also in legitimacy and popularity. Although bitcoin is slowly gaining popularity, and one of its major achievements in becoming legal is that bitcoin ETFs have been adopted. But many countries have yet to legalize it, its popularity is still not comparable to assets like gold and real estate, and its volatility is too great. There is no guarantee that it will be able to maintain growth forever or that it will increase sharply in the coming years.

In general, it is the most profitable asset but also the riskiest. Therefore, investing in bitcoin not only helps us avoid inflation but also has the opportunity to become rich if the growth rate is maintained over a long period of time. But if unfortunately it is dumped and cannot be recovered, that is a risk that we need to guard against.

Yes I think the risk if Bitcoin just need good management and keeping all your details properly, there is no doubt that  even when BTC fall it will stall bounce back investing it to wage inflation or recession can't give the investor loss at the end because despite not being stable still maintain a high level of confidence as record has shown that it has not fall without rising.

Real estate could be a good asset but allot is involved I believe that in real estate some time one may run into loss in recession or on inflation example some real estate face some lower turn out during hard inflation and recession another negative of real during war one may loss complete as it could be hard to have customers or investment or those who may have interest to buy share if it's a large real estate that Allie for shares.

agreed things never that simple, if someone could make money through investment doesn't mean we can but honestly speaking in the case of crypto the solution to making money and offsetting the inflation is simple a f.
just look at the chart of bitcoin spans between 2012 to 2024 here https://coinmarketcap.com/currencies/bitcoin/
the key here to success in cryptocurrency quite literally is just holding it which is funny enough the simplest thing someone with the mind that is eager to invest can do, just holding crypto already gets us to multiple folds of our initial capital which is crazy.
the people that lost from investing in crypto probably just don't have the patience to hold on to their crypto longer or they just be having some unreasonable fear that crypto might be doomed whenever it hits bottom price while in truth its not and even speaking the fact the bottom price of every bearish is the ath of previous cycle which kinda speaks a lot about the prospect of investing in crypto which also means so far the easiest way to offset the inflation.

diversification is great and contingency is needed but with cryptocurrency getting some share of our investment portfolio I think we can safely say that it has successfully offsetting current inflation by massive amount of price growth.

Real estate is not something that gives you that much return, I can tell you that. It does make a good return in the sense that it is not bad, it goes up, but not enough. Bitcoin is the best one, but in that situation there is volatility, like for example inflation was high when we went from 2021 to 2022, and even a bit of 2023, and yet the price of bitcoin went down during that time. But if you look at 2018 to 2021 then the price went high a lot.

So, there are situations when it goes up, and situations when it goes down, if you are willing to wait for a decade ore more than bitcoin is the best answer. However, if you are unwilling to wait then I would suggest gold would be the best one for short term, usually doesn't surprise anyone at all.

Pension and property is probably the simplest and most common way to save vs inflation.  Primarily because they are both useful as tools that will be certainly be needed, you will need somewhere to live so why not save into owning not renting property generally that can work out as an investment.   Many countries also tax protect the idea of house ownership, its considered a basic tenet of citizenship so its pretty safe in that respect though not perfect or exactly easy always.

Pensions are extremely common and again its tax favorable to do so, I did try and put BTC into a pension a while ago but it wasnt quite allowed under the rules sadly.   So I missed out on those gains but the other assets mentioned are viable to put into a pension with hopefully not too much management costs.

It is always best to have contingencies when it comes to assets. Definitely, practice the saying, don't put all your eggs in one basket. But of course, you should have knowledge at least what you are venturing into. I understood, a lot of people want to jump into crypto market, because they thought it is quite easy to get rich. However, they will find out quick that there's more than meets the eyes in this market.

Trying to avoid inflation or preserve value is something you choose carefully. You can chose government bond and then war happens, you will get delay in payment but there is assurance especially if it's coming from the government but what happen when inflation has exceed the interest rate you are getting in return. If you consider Bitcoin too for example, you can invest this year and bear market will make you lose value of your money, you have to wait for another bull run which can take another 2-3 years before your value will appreciate and if you bought at the top, you are soup because you will probably make nothing much to beat inflation.

Under favorable condition, I will choose atleast two from crypto and then chose from non crypto and then divide my investment into them just to be safer and if should incase one is not ready to be spend for that moment or incase of emergency situations where money will be needed as quick as possible, nobody knows tomorrow no matter how careful you are with your investment.

I do not know much about the market of commodities, but bitcoin, precious metals and real estate are without a doubt good investments if you want to beat inflation, now stocks can do so in a regular basis as well, but you need to be careful as when there is an economic crisis, stocks have the tendency to go down just when you need them to go up the most, and depending on the stock the crash can be quite big, so unless you watch the markets attentively stocks may not be the best option.

My experience so far, although i don't know of you, but as for me, I have realized that inflation that happens in every leap years are more higher than the ones that happens in none leap years. So for that, one should continuously buying cryptocurrency, real estate and other materials when they are still cheap  so that during inflation days you can be able to manage your self out.

Exactly. Altcoins are a passing trend. They're experimental and often inflationary. Bitcoin is sound money unlike anything the world has ever seen. It's even better than Gold. Having a 50-50 stake in both BTC and Gold is the best decision you could ever make. The key is to beat inflation to prevent poverty in the long run.

I'm afraid things will get worse as central banks have failed in putting the economy back on track. Just remember to never invest what you can't afford to lose, and there should be nothing to worry about.

Real estate is good, no questions.

Crypto(Bitcoin) and precious metals  are also good. But the best option with all of those is you go with real estate and Bitcoin, yes at the same time.

100%.

If you are a Bitcoin only investor, no problem.

But if you want to diversify then just make sure that you are not leaving without Bitcoin as part of your inflation-counter portfolio.

Inflation is like an open secret, a country if mentioned in the list of inflation, of course there are those who do not want it, the fact is that many are starting to enter and are getting worse. The good thing about welcoming digital assets ‘Bitcoin’ is the right step, when supply and demand are carried out by the whole world who owns and uses bitcoin.

Transactions in a country must be added to the existence of bitcoin (if you want to see opportunities) and other instruments such as gold, silver and those that are constant / can go up even though massive than just relying on fiat money, because fiat money is only suitable for daily payment.

Naturally, if bitcoin has trust and can recover value prices well. Because there is more and more trust in bitcoin and there is nothing wrong with having bitcoin starting from today. Moreover, government entities and services in other countries have bought it, this is a good fact that bitcoin is increasingly trusted. So far I only use bitcoin and gold for my wife.

Agree with you. To hedge against inflation, each person has their own skills, knowledge and abilities. However, basically the five commodities you mentioned are the right way to fight inflation and of course have their respective advantages and disadvantages. For those of us who are members of this forum, of course the right choice to protect value due to inflation is to invest in bitcoin because of course bitcoin provides very significant advantages compared to other investments. Maybe those who are new to bitcoin will choose Gold, Real Estate and Stocks as investments to protect value. In essence, it's all good to fight inflation.

I chose bitcoin over gold because gold has “unlimited supply”. But Bitcoin fixes that because its supply is limited and verifiable across the network, which makes the price of this asset rise and fall. With Bitcoin, we don't need to worry about our assets because they are not waiting for us at the bank. With Bitcoin, we are the bank.