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Topic: How to protect from inflation? - page 3. (Read 1124 times)

hero member
Activity: 2646
Merit: 582
Leading Crypto Sports Betting & Casino Platform
October 09, 2021, 04:32:47 AM
All the means that have been mentioned in this article are all good for saving yourself from inflation, but the levels of what you will be gaining from it differs for each of them. From the list we have here I have only invested in gold and cryptocurrency.

The first investment I had in gold wasn’t an investment I made myself, it was a free gold that was given out to me by someone as a gift. Then As for cryptocurrency I was the one who personally chose to be investing in it, and as time goes on I discovered that cryptocurrency is a better choice for me than any other that I’ve seen so far, so most of my investments are now going into cryptocurrency and it has been a way for me to retain value.
hero member
Activity: 3024
Merit: 745
Top Crypto Casino
October 08, 2021, 01:35:11 PM
In any country there are always reports of inflation that is higher than economic growth, especially when the pandemic period like now makes inflation out of control so we have to be selective in spending money, buying only the things we really need and investing in the best kinds of things. should be done immediately, crypto is the best choice to invest and overcome inflation.
It certainly happens but there are also some good news that they report that their economic growth are much higher than the inflation.
If it's not because of the pandemic, there are too many developing countries that might have slowed down the inflation on their countries due to a good economic growth.
full member
Activity: 1442
Merit: 108
October 08, 2021, 10:35:04 AM
Inflation is caused somehow by governments printing more and more money higher than the real GDP growth rates or faster than the real expansion of yearly production of goods and services produced . More money printed causes the real value of a unit currency including the US dollars to depreciate in terms of purchasing powers .
The cause of inflation is not only that, there are several causes of a country experiencing inflation. for example, such as the scarcity of products or services and a very strong public demand or attraction for an item. Inflation is a serious threat to the economy of a country, if inflation in a country exceeds the specified limit, it will have a very bad impact on the country's economy.
legendary
Activity: 3220
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www.Crypto.Games: Multiple coins, multiple games
October 08, 2021, 09:31:02 AM
Passive income is the path to getting rich, there is no denying that. All the rich people get richer by not working however their stocks going up. Look at Elon Musk, Jeff Bezos, warren buffet, bill gates. These are richest people in the world and they do not get richer by working, they get richer by their stock prices going up.

It doesn't mean that you should own stocks, but you should do something that is similar in logic, stocks work too but not the only one. This is why we are in crypto, if you have 100 bucks when you go to sleep but wake up with 110 dollars when you wake up, that is how you beat inflation. Just find a way to make money while not working and you can become rich as well. Or you can lose it all too, just be careful.

Crypto is the best way to protect yourself from inflation. There's no doubt about it. If you manage to make your own passive income system with crypto, then you'll be on a road towards financial freedom. It's always important to keep in mind the scarcity of a crypto asset before deciding to invest into it for the long term. Inflation will always be there, but it's up to you to decide whenever you'd want to hold onto your Fiat or simply invest it into something that would help you increase your purchasing power in the future. I wouldn't mind about inflation, as long as crypto exists. Just my thoughts Grin
hero member
Activity: 3024
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★Bitvest.io★ Play Plinko or Invest!
October 07, 2021, 10:21:14 PM
Inflation is caused somehow by governments printing more and more money higher than the real GDP growth rates or faster than the real expansion of yearly production of goods and services produced . More money printed causes the real value of a unit currency including the US dollars to depreciate in terms of purchasing powers .
Whether a government will print more money or not, inflation is inevitable. The world is affected by each commodities and resources that are becoming more expensive due to circumstances.

But a fact that a government plays a big role on how to stop or slow down an inflation based on the leadership and economic status of a country.
full member
Activity: 1344
Merit: 103
October 07, 2021, 10:15:06 PM
That's a problem we'll have to deal with in the long run. The amount of tax you'll pay after selling a scarce asset will leave you with very little money in return. How would anyone protect against inflation this way? This of course, applies with Gold and other tangible assets. It might be hard (if not impossible) to tax intangible assets like Bitcoin and NFTs. With or without inflation, what's important is that you're able to secure your financial future. Once you do that, you'll have nothing to worry about. Just my opinion Smiley

The case with gold is different, because it is suitable for extremely long term investment. So if you sell your gold after 20 years or 25 years of investment, the returns that you receive may be still higher than the depreciation due to fiat inflation. But that is not the case with stocks. Even for long term investment in the stock market, the usual duration of investment is 3 to 5 years. That means that capital gains tax need to be paid frequently and after the taxes, there will be a net loss in the value due to inflation. 

Very well said , gold is so much differences in bitcoin but its profitable as well. Investment in longterm can protect inflation then choose wisely to put investing , But if you are investor i prefer to find a expert to advice you. The only things to do is always think first before we invest because this can help us to avoid big losses.
legendary
Activity: 3346
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Leading Crypto Sports Betting & Casino Platform
October 07, 2021, 10:00:20 PM
That's a problem we'll have to deal with in the long run. The amount of tax you'll pay after selling a scarce asset will leave you with very little money in return. How would anyone protect against inflation this way? This of course, applies with Gold and other tangible assets. It might be hard (if not impossible) to tax intangible assets like Bitcoin and NFTs. With or without inflation, what's important is that you're able to secure your financial future. Once you do that, you'll have nothing to worry about. Just my opinion Smiley

The case with gold is different, because it is suitable for extremely long term investment. So if you sell your gold after 20 years or 25 years of investment, the returns that you receive may be still higher than the depreciation due to fiat inflation. But that is not the case with stocks. Even for long term investment in the stock market, the usual duration of investment is 3 to 5 years. That means that capital gains tax need to be paid frequently and after the taxes, there will be a net loss in the value due to inflation. 
sr. member
Activity: 2226
Merit: 347
October 07, 2021, 04:27:42 PM
Passive income is the path to getting rich, there is no denying that. All the rich people get richer by not working however their stocks going up. Look at Elon Musk, Jeff Bezos, warren buffet, bill gates. These are richest people in the world and they do not get richer by working, they get richer by their stock prices going up.

It doesn't mean that you should own stocks, but you should do something that is similar in logic, stocks work too but not the only one. This is why we are in crypto, if you have 100 bucks when you go to sleep but wake up with 110 dollars when you wake up, that is how you beat inflation. Just find a way to make money while not working and you can become rich as well. Or you can lose it all too, just be careful.
It might looked easy but it isnt for everybody because stock investment is something still a gamble or have particular risk.It just turns out that those rich people would always have the advantage because they could
be versatile and can deal up with various things which isnt limited to investing on stocks but on other forms of investment as well which would  really able to patch up whenever they do experience losses from other investment. Rinse and repeat and this had been the advantage when you are rich one but this cant be applied on middle class to low class but it doesnt mean that is impossible but a really very hard thing.
legendary
Activity: 3052
Merit: 1188
October 07, 2021, 04:00:25 PM
Passive income is the path to getting rich, there is no denying that. All the rich people get richer by not working however their stocks going up. Look at Elon Musk, Jeff Bezos, warren buffet, bill gates. These are richest people in the world and they do not get richer by working, they get richer by their stock prices going up.

It doesn't mean that you should own stocks, but you should do something that is similar in logic, stocks work too but not the only one. This is why we are in crypto, if you have 100 bucks when you go to sleep but wake up with 110 dollars when you wake up, that is how you beat inflation. Just find a way to make money while not working and you can become rich as well. Or you can lose it all too, just be careful.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
October 07, 2021, 03:54:01 PM
Investing in valuable assets can effectively avoid inflation, and bitcoin is now a good way to protect funds from inflation.

The decentralization and fixed finiteness of Bitcoin will make it more valuable as people's demand for it increases. Long-term investment can be profitable and can be protected from inflation.

You can always invest in assets that are protected against inflation. But what about taxes? For example, in USD terms, an asset which you invested for $100 in 2021 is priced at $1,000 in 2031. But during the same duration, the purchasing power of USD went down by 10 times. So essentially your net wealth remains the same, despite the change in values as per USD terms. And now comes the tax bill. According to the IT department, your gains are +$900 in 10 years and long term capital gains tax are applicable on this. In many countries, this works out to 10%-30%. And there are a lot of politicians who want this rate to be increased to 60%-70%. Now calculate yourself how much will be left after the tax payment.
That is without a doubt the problem, in times of crisis you can be sure that you are going to be taxed very heavily on your hard assets if you ever decide sell them because governments will argue that this is the best for the rest of the population and obviously all of those that did not invested in those hard assets are going to agree with them, so as we can see investing in a hard asset is a good start to try to protect your capital but it is not the end of it, you also need to have an exit strategy so you are not robbed by the government.
jr. member
Activity: 89
Merit: 4
October 07, 2021, 06:46:26 AM
Inflation is caused somehow by governments printing more and more money higher than the real GDP growth rates or faster than the real expansion of yearly production of goods and services produced . More money printed causes the real value of a unit currency including the US dollars to depreciate in terms of purchasing powers .

Countries make 100% sure price inflation happen by printing enought money and using it, but price inflation can happen without government help. NXT a 100% premined coin has inflation when compared with dollar despise no new coin being printed. Not only that, dollar already have price inflation because of previous said things at this post, so not the inflation is even bigger at NXT.
newbie
Activity: 14
Merit: 1
October 07, 2021, 04:56:08 AM
Inflation is caused somehow by governments printing more and more money higher than the real GDP growth rates or faster than the real expansion of yearly production of goods and services produced . More money printed causes the real value of a unit currency including the US dollars to depreciate in terms of purchasing powers .
full member
Activity: 1484
Merit: 101
October 05, 2021, 09:20:41 AM
The easiest way for inflation protection is to take risks by making new businesses or investing in various places, and in my opinion cryptocurrencies are the easiest type of investment to do and have the opportunity to make big profits so that we can overcome inflation, create accounts and trade cryptocurrencies, no need to queue like in forex or others so that investing in cryptocurrencies is suitable for anyone even during a pandemic like now,.
jr. member
Activity: 89
Merit: 4
October 05, 2021, 07:03:15 AM
Would something like this works?

Coin is 100% premined (AND distributed, not like ripple) by some method (but new coins can be created check later).

Crypto has 5 variables.
1-Coin
2-Pre Burn
3-Pre Temporary Burn
4-Temporary Burn
5-Burn.

You can send coins at your coin variable to your pre burn variable, your pre temporary burn variable or other wallets coin variable.
You can send coins at your pre burn variable to your coin variable, or your pre temporary burn variable or someone else coin variable.
You can send coins at your pre temporary burn variable to your coin variable, or your pre burn variable or someone else coin variable.
You can send coins at your pre burn variable to your coin variable or someone else coin variable.
You can send coins at your temporary burn variable to your burn variable.
You can send coins at your burn variable to your temporary burn variable.

Every X blocks (some amount that is 14 days, or 2 weeks), the amount of coins at your temporary burn variable go back to your coin variable. THEN, the amount of coins at pre burn variable goes to to  burn variable and then the amount of coins at pre temporary burn variable goes to your temporary burn variable.

Mining is made based at the amount of coins you have at your temporary burn variable and burn variable.

After Y blocks (Z months) since the start of the coin, when new coins will move to temporary burn and burn variables, it calculate the percentage of market cap those coins are, lets say they are W% of total coins.

After it, when moving coins from temporary burn variable to coin variable, and then pre burn/ pre temporary burn to burn and temporary burn, it first calculate the % of total amount of coins the pre burn and pre temporary burn and burn variable coins are. If that value is smaller than W%, it destroy some % of coins at temporary burn and burn variable first, before sending temporary burn variable coins back to coin variable and then adding pre burn or pre temporary burn coins to burn and temporary burn coin variables. The amount it will be destroyed is some amount that will make those coins be w% of all coins.
If before moving those coins, it discover that the % at pre burn, burn and pre temporary burn variable is bigger than W%, it creates more coins to be mined during those X blocks period (that is 14 days at average), to make the coins at the pre burn, burn and pre temporary burn variables become W% of all coins.

So you make the coin stable by increasing or decreasing the coin amount to make the amount people are ok with burning during a 14 days perior be always, the same percentage of all coins.
legendary
Activity: 2366
Merit: 1624
Do not die for Putin
October 05, 2021, 06:24:25 AM
I believe that there will be many answers Bitcoin is, that understandable because this is a forum about Bitcoin, but it will only run properly if we do it for the long term, gold and stock can also be chosen to protect from inflation

Banks are a good protection to inflation but the problem is there is close to zero profits with banks so it's not a good thing to go that route for inflation protection
We cannot protect from inflation with just by putting money in the bank, the amount will remain the same but the value will decrease as inflation increases.

Exactly, that would be the perfect way to NOT being protected from inflation, as you money would be worth less each time. The problem is quite obvious if you understand what inflation is.

There is however one chance to protect by using banks, and that is if the deposits offer a yield higher than the currencies inflation, but that is something I have not seen in any major currency since the 1990s.
sr. member
Activity: 1428
Merit: 252
October 05, 2021, 05:55:36 AM
Inflation in any country cannot be prevented, even in developing countries like Africa the inflation rate can be 2 digits and economic growth is only 1 digit, of course this is a big problem so we have to save our finances by looking for alternative income, every month we have to invest even if small value.
legendary
Activity: 3220
Merit: 1363
www.Crypto.Games: Multiple coins, multiple games
October 04, 2021, 09:41:00 AM
You can always invest in assets that are protected against inflation. But what about taxes? For example, in USD terms, an asset which you invested for $100 in 2021 is priced at $1,000 in 2031. But during the same duration, the purchasing power of USD went down by 10 times. So essentially your net wealth remains the same, despite the change in values as per USD terms. And now comes the tax bill. According to the IT department, your gains are +$900 in 10 years and long term capital gains tax are applicable on this. In many countries, this works out to 10%-30%. And there are a lot of politicians who want this rate to be increased to 60%-70%. Now calculate yourself how much will be left after the tax payment.

That's a problem we'll have to deal with in the long run. The amount of tax you'll pay after selling a scarce asset will leave you with very little money in return. How would anyone protect against inflation this way? This of course, applies with Gold and other tangible assets. It might be hard (if not impossible) to tax intangible assets like Bitcoin and NFTs. With or without inflation, what's important is that you're able to secure your financial future. Once you do that, you'll have nothing to worry about. Just my opinion Smiley
legendary
Activity: 3346
Merit: 1352
Leading Crypto Sports Betting & Casino Platform
September 26, 2021, 10:10:30 PM
Investing in valuable assets can effectively avoid inflation, and bitcoin is now a good way to protect funds from inflation.

The decentralization and fixed finiteness of Bitcoin will make it more valuable as people's demand for it increases. Long-term investment can be profitable and can be protected from inflation.

You can always invest in assets that are protected against inflation. But what about taxes? For example, in USD terms, an asset which you invested for $100 in 2021 is priced at $1,000 in 2031. But during the same duration, the purchasing power of USD went down by 10 times. So essentially your net wealth remains the same, despite the change in values as per USD terms. And now comes the tax bill. According to the IT department, your gains are +$900 in 10 years and long term capital gains tax are applicable on this. In many countries, this works out to 10%-30%. And there are a lot of politicians who want this rate to be increased to 60%-70%. Now calculate yourself how much will be left after the tax payment.
jr. member
Activity: 54
Merit: 6
September 26, 2021, 08:42:56 PM
Investing in valuable assets can effectively avoid inflation, and bitcoin is now a good way to protect funds from inflation.

The decentralization and fixed finiteness of Bitcoin will make it more valuable as people's demand for it increases. Long-term investment can be profitable and can be protected from inflation.
sr. member
Activity: 784
Merit: 250
September 26, 2021, 05:52:35 PM
#99
To beat inflation, you must earn at least 6% of your investment. There are many options you can try. You can easily earn much more than 6% by trading your shares. If you are an experienced investor, you will know that stocks are one of the riskiest investments. In fact you can lose your money up to 50% or it could be more than that.
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