How long can Bitcoin out perform inflation in the long run?

MarjorieZimmermanGinger

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Quote from: darewaller on August 31, 2023, 04:11:23 AM

DCA is definitely one I would highly suggest as well, it is one that helps everyone out and it does turn out to be something that people could enjoy as well. I know that it is not going to be that much of a great thing just yet, but it is definitely a decent one without a doubt. Remember that it is going to end up with a result that will not be properly used like that, and we could just consider this to be something to care about if we do not have a lot of money right now but have an income.

If you do not have a lot of capital to invest right now but do have an income every month, just put in at least 10% (but more if you can) into bitcoin and then eventually it will end up doing a lot better on the long term because you DCA naturally.

We will actually get a great thing if someone has a strategy in investing, when today we don't have a lot of money to invest in bitcoin then there is a DCA strategy that can be applied and when this can be maintained consistently and regularly then in a few years we will will experience an increase, both in terms of profits and assets that we have. These are some strategies that can be applied when someone has a small budget to start with because there is always an opportunity when someone intends to do it.

Normally everyone must have a monthly income, but sometimes the monthly income is not balanced with expenses so that it can cut the percentage of the investment that is carried out. I don't think it's necessary to depend on the percentage, but if there is remaining money you can put it into investment and it also depends on a person's level of ability because the most important thing is that we have to have our own strategy in investing bitcoin.

laris2

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I've been closely monitoring the upcoming Bitcoin halvening, and it's fascinating to see the economic principles at play. For those who might not be aware, the halvening is an event where the reward for mining new blocks is halved, effectively reducing the supply of new Bitcoins entering the market by 50%. This is a built-in mechanism to ensure that Bitcoin remains deflationary over time.

What's even more intriguing is the current demand from retail investors. Recent data suggests that retail investors are purchasing more Bitcoin than what's being produced daily. This supply-demand imbalance is a classic economic scenario. With the halvening further reducing the daily supply, and assuming the demand remains constant or even increases, we could potentially witness some interesting price dynamics in the near future.

And with new people getting mature and ready for digital economy (eg. people grown buying things online, skins and other intangible things) it will be easier for them to transition into this digital age.

Inwestour

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Quote from: Mauser on August 29, 2023, 08:20:51 AM

An inflation rate of 10% per year seems like a lot, even if many countries faced such a rate last year it's not constant and will drop again. Trying to reach such returns every year seems too high and not reliable. Many assets might achieve that during good times, but during a crisis this is rather leading to loss. The only asset might be inflation protected bonds, that will pay you coupons based on the current inflation rate. The problem is that there is no upside with bonds. Gold as the go to investment in the past also didn't protect us from inflation in the current crisis. That's why I don't really have a strategy to protect myself from inflation, I will keep holding my cryptos and keep buying more. The worst thing we could do at the moment would be to leave our money at the bank in a savings account.

Buying cryptocurrencies is not bad, in my opinion, everything other than Bitcoin contains certain risks that are worth considering. And it is also very important to choose the right time to buy, because if the entry point is chosen incorrectly, then the investment may suffer losses that are even greater than what inflation would do to your funds. Gold may also not be the worst option against inflation, but it has the same long-term nature as Bitcoin, if you want to protect your funds from inflation in the long term, then gold is also suitable for this.

NotATether

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Bitcoin price rises by a multiplication factor (and stays there) roughly every 4 years - not necessarily coinciding with the halving. It's not like it's a small factor either, even though it's decreasing for each halving. Even if Bitcoin price increases only by 10% after some other halving one day, that will still beat inflation rates.

darewaller

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Quote from: MarjorieZimmermanGinger on August 28, 2023, 11:03:15 AM

The power of storing value makes bitcoin one of the best investments today and it is for that reason that people prefer to take advantage of long term investments when involved in investing. Not for the reason that buying bitcoin is a little higher than the current price, because if that's the reason, we can sell when the price increase is a little bigger than the initial purchase capital. At least that's what I understand why bitcoin is one of the best investments in the long term and other advantages may be because of its value which never depreciates at any time.

More precisely take long-term steps for investments made in bitcoin and continue to use patterns that can increase the amount of ownership of our assets in bitcoin, be it using DCA patterns or any method that can be utilized, because if you wish to buy to increase the amount of ownership after profits then we're going through a good period of accumulating.

DCA is definitely one I would highly suggest as well, it is one that helps everyone out and it does turn out to be something that people could enjoy as well. I know that it is not going to be that much of a great thing just yet, but it is definitely a decent one without a doubt. Remember that it is going to end up with a result that will not be properly used like that, and we could just consider this to be something to care about if we do not have a lot of money right now but have an income.

If you do not have a lot of capital to invest right now but do have an income every month, just put in at least 10% (but more if you can) into bitcoin and then eventually it will end up doing a lot better on the long term because you DCA naturally.

Silberman

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Quote from: internetional on August 26, 2023, 07:51:22 AM

Storing savings in bitcoins is always more advantageous than holding them in any inflationary asset. The exchange rate is completely irrelevant here. If you store your savings, for example, in dollars, you will definitely lose them in the long run. But if you store them in bitcoins, you will preserve everything in the long run. One bitcoin is always equal to one bitcoin. And it doesn't matter what the entry point was or how long you hold onto bitcoins.

It's better not to sell bitcoins at all. And if there is a need for dollars, you can take them out on credit secured by bitcoins. If the loan is long-term, it's almost certainly more profitable than selling bitcoins and then trying to buy them back.

A more stable bitcoin should be able to track inflation anyway, this is what happens with real estate, there are bubbles as in any market but when we take a look at the prices of real estate over the generations you will see they will go up in line with inflation, so a bitcoin that was not as volatile as it is now should be able to track inflation as now there are more dollars chasing the same amount of bitcoins, and we know that when the demand of any asset goes up, while its supply remains static then that asset has no option but to go up in value accordingly.

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Quote from: Despairo on August 23, 2023, 12:52:09 AM

Every four years seems to be the best way if you want to sell at the highest, don't sell your coins every year because Bitcoin isn't in bull run season.

For me, I have not yet sell my coins. I only sell small amount in order to buy foods, pay bills, household, electricity etc. The rest of my coins, I continue to hold until I don't know when I sell because I'm not really focus to increase my coins by selling my coins, I'm focus to develop my skill to get paid higher and continue DCA-ing.

10000% Agree if you want to hold the bitcoin as an investment the 4 year cycle or the halving cycle is a good choice because you can take profit at the very peak of the bitcoin price.

and like despairo it would be very nice to hold as much as possible, especially when you get money from the crypto industry by doing bounty or airdrop like signature campaign, you will get btc from your signature then you can just hodl it.

or Since you treat bitcoin a investment you can hold as much and as long as possible and take profit when you are ready. at 4 year cycle bitcoin already beaten inflation rate on any country in my opinion

SquirrelJulietGarden

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Quote from: Mauser on August 29, 2023, 08:20:51 AM

An inflation rate of 10% per year seems like a lot, even if many countries faced such a rate last year it's not constant and will drop again.

Inflation rates can be higher than 10% in many nations with hyper inflation rates. National fiat currencies in those countries lose their purchasing power a lot with time.

Quote

Trying to reach such returns every year seems too high and not reliable. Many assets might achieve that during good times, but during a crisis this is rather leading to loss. The only asset might be inflation protected bonds, that will pay you coupons based on the current inflation rate.

Bonds are not safe and if you don't know why they are not safe, see some banks' bankruptcies in the USA. recent months. They are like your savings in banks that sometimes will bring negative interests for your capital and with bonds, there is another risk that if you want to sell your bonds to get cash, you sometimes have to sell it as lower values than what you spent to buy those bonds.

Banks in the USA. collapsed / bankrupted because of such unwanted bond selling.

Bd officer

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Inflation is also very high in the country where I live. It is increasing day by day. Now I invest in Bitcoin without depositing money in the bank. Because I don't think it is advisable to keep money in the bank at this time. Many have invested in gold and silver as inflation is high. But I invested in Bitcoin. I consider Bitcoin an asset. Bitcoin I expect to see a big price increase in 2024-25. If Bitcoin is $50,000 in 2024-25, then if I invest $100 now, I will get a return of about $200. As per the inflation rate given by you, 20% inflation is seen in 2 years. $100 becomes $80 in 2 years at 10% inflation rate. Now I invest $100 in Bitcoin and expect $200 return. So I think by investing in Bitcoin, inflation will not affect my money.

Mauser

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Quote from: Kakmakr on August 23, 2023, 12:44:10 AM

What strategy do you use to beat inflation with your Bitcoin investment? (I am saying investment... because a lot of people use Bitcoin as a commodity and not as a currency)

How long are you willing to wait, before Bitcoin are not an inflation beating investment anymore?

An inflation rate of 10% per year seems like a lot, even if many countries faced such a rate last year it's not constant and will drop again. Trying to reach such returns every year seems too high and not reliable. Many assets might achieve that during good times, but during a crisis this is rather leading to loss. The only asset might be inflation protected bonds, that will pay you coupons based on the current inflation rate. The problem is that there is no upside with bonds. Gold as the go to investment in the past also didn't protect us from inflation in the current crisis. That's why I don't really have a strategy to protect myself from inflation, I will keep holding my cryptos and keep buying more. The worst thing we could do at the moment would be to leave our money at the bank in a savings account.

MarjorieZimmermanGinger

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Quote from: Onyeeze on August 26, 2023, 08:06:28 AM

Those people who is hoarding their bitcoin and be waiting for bitcoin price to rise before they can sell are the people who bought Bitcoin when the price is higher than the price its now, and a good investors will like to hoardi bitcoin until the price reaches bullrun before selling bitcoins, their is something I know quite well concerning bitcoin and know the bitcoin price can never depreciate In price and stay up to six months without rising, do when you are investing in bitcoin you have a bought and you also have a target the price of bitcoin will get to before marketing or selling your bitcoin. It's good to hoard bitcoin.

The power of storing value makes bitcoin one of the best investments today and it is for that reason that people prefer to take advantage of long term investments when involved in investing. Not for the reason that buying bitcoin is a little higher than the current price, because if that's the reason, we can sell when the price increase is a little bigger than the initial purchase capital. At least that's what I understand why bitcoin is one of the best investments in the long term and other advantages may be because of its value which never depreciates at any time.

More precisely take long-term steps for investments made in bitcoin and continue to use patterns that can increase the amount of ownership of our assets in bitcoin, be it using DCA patterns or any method that can be utilized, because if you wish to buy to increase the amount of ownership after profits then we're going through a good period of accumulating.

Solosanz

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How long? no limit.

Fiat is always inflated and the value is keep decreasing while Bitcoin is immune against inflation and the price should be keep rising as long as the demand is high. We've seen Bitcoin price hit $17K before and now $26K, it's because we're compare with USD, if not Bitcoin is Bitcoin and the value never decline.

Lorence.xD

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Quote from: Onyeeze on August 26, 2023, 08:06:28 AM

Those people who is hoarding their bitcoin and be waiting for bitcoin price to rise before they can sell are the people who bought Bitcoin when the price is higher than the price its now, and a good investors will like to hoardi bitcoin until the price reaches bullrun before selling bitcoins, their is something I know quite well concerning bitcoin and know the bitcoin price can never depreciate In price and stay up to six months without rising, do when you are investing in bitcoin you have a bought and you also have a target the price of bitcoin will get to before marketing or selling your bitcoin. It's good to hoard bitcoin.

That is why investing at Bitcoin are not really advisable for people who's aiming for a quick money. Cause as you said Bitcoin could remain it's value for many months or even decrease its value. If those people who used money such as loan, then it wouldn't be a good idea especially if you don't have income to pay your debt. Maybe trading would do for those people which takes a lot of analysis for you to have a good call. If one person invested doesn't even have any aiming price, for sure he would panic when the market started to be random since it's volatile. This is the time where most likely they would do a bad call and causes losses. Just keep hoarding and take your time, it might be a long journey but Bitcoin would reach bullrun in months or even years.

Onyeeze

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Those people who is hoarding their bitcoin and be waiting for bitcoin price to rise before they can sell are the people who bought Bitcoin when the price is higher than the price its now, and a good investors will like to hoardi bitcoin until the price reaches bullrun before selling bitcoins, their is something I know quite well concerning bitcoin and know the bitcoin price can never depreciate In price and stay up to six months without rising, do when you are investing in bitcoin you have a bought and you also have a target the price of bitcoin will get to before marketing or selling your bitcoin. It's good to hoard bitcoin.

internetional

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Storing savings in bitcoins is always more advantageous than holding them in any inflationary asset. The exchange rate is completely irrelevant here. If you store your savings, for example, in dollars, you will definitely lose them in the long run. But if you store them in bitcoins, you will preserve everything in the long run. One bitcoin is always equal to one bitcoin. And it doesn't matter what the entry point was or how long you hold onto bitcoins.

It's better not to sell bitcoins at all. And if there is a need for dollars, you can take them out on credit secured by bitcoins. If the loan is long-term, it's almost certainly more profitable than selling bitcoins and then trying to buy them back.

Silberman

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Quote from: Blitzboy on August 25, 2023, 08:23:31 AM

Saying "sell Bitcoin as soon as it hits an ATH." is oversimplified. Bitcoin defies financial norms. Every time critics say its peaked, it hits a new high. We humans mistakenly believe the current situation will last forever. No way! You recall the 20k-68k surge? Peak prediction is impossible. Sell when Bitcoin reaches ATH? Absurd! Its clear from history that holding past the ATH may be very beneficial. Here's the catch: you need balls to handle uncertainty. Not for the fainthearted. If you can manage that, doubling may be the beginning. For Satoshi's sake, dont be fooled by short-term swings and believe in HODLing

Selling at the top may seem easy but this is only because of hindsight, when taking a look at the charts it is easy to see the highest point of a cycle and think that was the best moment to sell, however that is not how the market looks on real time, there are points that seemed like the top but then the price of bitcoin kept growing, and when people though 69k was not the top and we could reach 100k suddenly the price stopped growing and 69k became the current ATH, as such only a few fortunate ones are able to sell at the ATH, while the rest have to sell for less than that.

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Quote from: justdimin on August 25, 2023, 03:20:11 AM

Quote from: fauzan Ichsan on August 24, 2023, 01:28:17 AM

Quote from: davis196 on August 24, 2023, 12:53:46 AM

In theory, some deflationary and scarce asset like Bitcoin should be able to always outperform the levels of inflation.
In reality, the Bitcoin price has ups and downs and there's a possibility for it to crash in times of high inflation.
Many people claim that the Bitcoin price movement is cyclic, which means that we always have to wait for the next high wave of the cycle(when the price hits another ATH).
Just don't sell when the price goes down and wait for the upcoming ATH. Inflation is good for BTC, because "money printer goes brrrr..." and this creates more demand for Bitcoins. Grin

Investment in bitcoin cannot be bound by time and formula, but does take advantage of the waves that occur. it's different with inflation where it's possible that it can multiply as OP talked about, but for bitcoin to be able to beat inflation at a certain time if it penetrates a new ath and we sell it, maybe it will be several times, but it's different if we sell it in a bearish season, it can happen instead we will lose to inflation, it can be said to beat inflation because of the growing adoption of bitcoin, thus increasing its price

I think it's hard to just sell bitcoin as soon as it goes over the ATH price, that doesn't mean that it will stop going higher. It is true that we are going to have some sort of trouble if we keep holding it for too long, because eventually it will start to go down but that doesn't mean that we shouldn't hold it after it breaks above ATH, we should keep holding it a bit longer than that and see where it can peak, that would make sure that it could go to a better place.

Look at last time, 20k was ATH and it peaked 68k, that means that we are not going to end up being something a bit harder than usual and that should be something to look for and care about. I believe if you hold at least double, you should be fine.

Saying "sell Bitcoin as soon as it hits an ATH." is oversimplified. Bitcoin defies financial norms. Every time critics say its peaked, it hits a new high. We humans mistakenly believe the current situation will last forever. No way! You recall the 20k-68k surge? Peak prediction is impossible. Sell when Bitcoin reaches ATH? Absurd! Its clear from history that holding past the ATH may be very beneficial. Here's the catch: you need balls to handle uncertainty. Not for the fainthearted. If you can manage that, doubling may be the beginning. For Satoshi's sake, dont be fooled by short-term swings and believe in HODLing

justdimin

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Quote from: fauzan Ichsan on August 24, 2023, 01:28:17 AM

Quote from: davis196 on August 24, 2023, 12:53:46 AM

In theory, some deflationary and scarce asset like Bitcoin should be able to always outperform the levels of inflation.
In reality, the Bitcoin price has ups and downs and there's a possibility for it to crash in times of high inflation.
Many people claim that the Bitcoin price movement is cyclic, which means that we always have to wait for the next high wave of the cycle(when the price hits another ATH).
Just don't sell when the price goes down and wait for the upcoming ATH. Inflation is good for BTC, because "money printer goes brrrr..." and this creates more demand for Bitcoins. Grin

Investment in bitcoin cannot be bound by time and formula, but does take advantage of the waves that occur. it's different with inflation where it's possible that it can multiply as OP talked about, but for bitcoin to be able to beat inflation at a certain time if it penetrates a new ath and we sell it, maybe it will be several times, but it's different if we sell it in a bearish season, it can happen instead we will lose to inflation, it can be said to beat inflation because of the growing adoption of bitcoin, thus increasing its price

I think it's hard to just sell bitcoin as soon as it goes over the ATH price, that doesn't mean that it will stop going higher. It is true that we are going to have some sort of trouble if we keep holding it for too long, because eventually it will start to go down but that doesn't mean that we shouldn't hold it after it breaks above ATH, we should keep holding it a bit longer than that and see where it can peak, that would make sure that it could go to a better place.

Look at last time, 20k was ATH and it peaked 68k, that means that we are not going to end up being something a bit harder than usual and that should be something to look for and care about. I believe if you hold at least double, you should be fine.

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Quote from: Sim_card on August 23, 2023, 03:03:18 AM

Bitcoin is a store of value and no matter how inflation rises the assets in bitcoin will be overcome inflation. I prefer hodling my bitcoin till the bull run for every circle so that I can sell and have profit,that is when the price of bitcoin during the bull run has reached my target selling price. And if during the bull run,bitcoin didn't reach my target selling price,I will keep hodli till the next bull run. I believe with this method one will be able to beat inflation with his investment. While hodli one still needs to use DCA method when necessary to take advantage of the market.

I don't think bitcoin is a store of value, I mean its volatility is large, so it is more suitable for investment than a store of value like gold. And for bitcoin investment to beat inflation, we need bitcoin's growth rate to be greater than inflation's growth rate. If bitcoin doesn't grow, it won't be able to beat inflation.

In theory, a finite supply of bitcoin could help us beat inflation, but limited supply is not enough, bitcoin needs to be in high demand. As demand for bitcoin increases, which in turn pushes the price of bitcoin higher, it can help us fight inflation.

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Quote from: Blitzboy on August 24, 2023, 10:08:23 AM

Quote from: Darker45 on August 23, 2023, 10:50:25 PM

I can hardly grasp your point, but I think this is where the argument that "since inflation is never-ending, the increase of Bitcoin's price is also never-ending" comes in.

Bitcoin will always beat inflation. It might not strictly be year after year, but in the long run Bitcoin will always be the victor. You will only be defeated if you sell your Bitcoin for fiat.

Perhaps one way of making sure your value overcomes the continuous inflation is to store your wealth in assets or properties that grow in value over time. A piece of land, for example, especially in a strategic location, is one thing of this kind. Investing your money in a business is another.

But, for me, Bitcoin is more or less sufficient as far as the overall numbers are concerned.

Inflation and Bitcoin aren't just two actors on a simplistic stage of economics. No! Inflation is a wicked beast, birthed by systems that love control. Now Bitcoin, my friend, is the hammer to the chains. You suggest that its price rise is just a mere consequence of inflation? A grievous underestimation! It's a revolt, a revolution against the corrupted systems.

Assets like land? Temporary safeguards, pawns in a bigger game. Bitcoin isn't just an alternative; it's THE solution. And let's not even talk about businesses - most are slaves to the same depreciating fiat.

You claim to comprehend the magnanimity of Bitcoin while simultaneously underplaying it? Tread carefully, for history has little mercy on those who fail to see revolutions unfolding before their eyes!

My friend, I'm afraid we're not talking here of the revolutionary features of Bitcoin. We're just doing some mathematics. We're just trying to compute certain numbers. We all know that Bitcoin is this and that, freedom, emancipation from the abuses of central banks, independence from banks, and so on and so forth, but we're simply looking at inflation as a number here. It means more than that, of course. It's stealing; it's taxation; whatever, but perhaps it's another discussion altogether.

Topic: How long can Bitcoin out perform inflation in the long run? (Read 382 times)