Topic: How to survive hyperinflation? - page 2. (Read 1436 times)

In a hyperinflationary environment, it is certainly important to invest in hard currencies with a stable supply, but I think the most important thing is to stock up on food and clothing because I feel that food and clothing prices have increased more. I do my shopping in bulk, especially for basic needs. For example, I stock up on flour, oil, sugar, and other foodstuffs that will last me for more than a few months. I know that when I do this, I am not curbing hyperinflation and I am creating a short-term demand inflation, but I cannot protect myself from hyperinflation.

With the rise of inflation in my country, I would rather invest in crypto than any of the above listed by you. In this period, although I haven’t invested in any other assets asides from crypto and I have gained and not too affected by the inflation because of how the value of my assets in crypto is rising against my country’s currency. This has only given me the opportunity to still get the same quantity of goods with the percentage of my income reserved for that purpose every time I want to buy but it hasn’t really helped me become richer than I was before. I love saving in crypto (stable coins)  than in fiat because of the depreciation of the fiat currency in respect to the stable currencies.

Very wise from people to keep their value in those assets you mentioned, because in historical moments when FIAT can be trusted to store value, it is better to be the central bank the one who holds the bag in the end, not the people of the country.
Now, when you also talk about the inflation rate there in your country and compare it to the one we had here in Venezuela, it is clear you won't see those crazy numbers here in your homeland, because what we experienced here some year ago was the result of crooks in power who do not care about the integrity of the economy, those are not serious people. If the people in charge of your economy have a little bit of seriousness, it is very very very unlikely for you to ever experiment the nightmare we saw here in this beautiful country.

In your opinion, what is the best method to safe guard one's money in your country, cryptocurrency, gold or United States Dollars? I imagine one of those options have more liquidity than others and also some more changes of being available than the others.

Do you live in Venezuela? No, we have high inflation but not crazy numbers like Venezuela. At the moment there is a controlled rise on the prices, there is no hyperinflation. Nevertheless, for a developed country like ours these are high figures and the cost of living is being seriously felt. At the moment the rate of increase in the dollar exchange rate is slow, but there is uncertainty because there will be elections in the country in two months. After the elections, the dollar exchange rate is expected to rise along with inflation. I don't think we will experience hyperinflation, but I don't think they will be able to stop the devaluation of our currency day by day as well. In such an environment, it wouldn't make sense to stay in TRY. That's why people keep their money in crypto-currencies and USD or physical gold.

The uncontrolled and rapid increase in inflation makes people feel very anxious, because the prices of all goods are rising drastically. This phenomenon is characterized by a drastic increase in the price of goods and a drastic decrease in the value of money, which is a big problem for the lower classes of society. However, , a country can be said to be experiencing hyperinflation if the inflation rate reaches 50-100% within a month, so the government must carefully consider the problems that occur among lower class people, So people at lower levels do not experience very high rates of inflammation, so people do not have difficulty buying basic daily necessities.

A financial strategy becomes paramount in the face of persistent inflation.  Surviving hyperinflation requires a strategic approach to financial well-being. Difference is important when investing in cryptocurrencies like Bitcoin during challenging economic times. When investing in circles you should adopt a systematic approach like Dollar Cost Averaging (DCA). through which to navigate the financial challenges presented by ongoing inflation.

The safest ones are precious metal and real estate. You have asked these questions in bitcointalk community so I assume many will suggest investing in bitcoin but don't tell you about its volatility. If you don't mind losing 5k in value overnight or can keep yourself calm by seeing 5k in an hour then go for bitcoin. 5k is just a number used by me to give you an idea about volatility. Stock market is highly manipulated so it is not advisable to use stock. Make a decision by doing some research but keep in mind choose any asset class that has high liquidity and you don't need to rely on someone to liquidate your asset.

To protect your money when prices go up (hyperinflation) I think it should be with a cool head and a calm feeling, there are some types of investments that have a high enough value and are not affected by inflation such as property, houses, even gold I think this can be done. But there are also financial instruments that might help fight rising prices. When thinking about an investment in crypto, stocks or houses, there are definitely risks and rewards. So I think that even so we must really study it more deeply so that we can benefit from it.

isn't keeping money in USDT when there is hyper inflation occurring just mean that we gonna lose our wealth overtime? I think what you mean is gold, or something that is "believed" to be able to fight against the hyperinflation since they are being considered as store of value.
meanwhile by keeping money in USDT you are definitely just gonna get eaten by the inflation.
with bitcoin in the other hand gonna be massive usually when such crisis occur bitcoin price magically increase maybe because people think that bitcoin is reliable to invest at such hard and difficult time.
I guess that also why big company try to accumulate bitcoin.

I quite understand what you guys are saying and your points are so valid, only that you might still not know how best to go about gold's investment. Never you compare the way Bitcoin works with the way gold works, if you do, you will be making mistakes. Just like Bitcoin, learn and understand the investment pattern before you commit your money, the same goes for gold, you need to have different ideologies and mindsets about the two of them for you to maximize their potential differently. Mind you, Bitcoin and crypto investments are like never before, they are still young which is why you see them moving in multiples. But with time, you will see them drastically reducing the amount anyone can earn through them per time. You can mark my word on that.

Particularly about gold, what is working for me is that I buy lows and sell highs, but only long-term. I simply do this by studying both the daily and weekly charts of the asset simultaneously to make an informed decision as the case may be. You can be a good studier of the gold's chart too by using the price action and as many as possible support and resistance strategies on the daily and weekly timeframes. By this, you know the long-term tops and bottoms of gold to make a very useful decision at the time. The last time I made a decision on gold was to buy the asset, and my striking price was $1849 and gold hit $1994 afterwards which I still believe would continue to grow over time unless a sell signal is detected. This can't earn you as much as Bitcoin would earn you, but just like other assets, you can make about 3-5 informed decisions like that in a year which is good money. This is a good alternative to crypto investment and is also better than leaving your money in the bank to be wasted. Needless to say, if it is about trading, gold is far better than Bitcoin if the trader is good.

I remember perfectly well how two years ago, before the beginning of this crisis, a female analyst told me that times were coming when it would be impossible to survive without a part-time job. And a year ago, I realized that she was right. Because of the difficult situation in the world, I really found a part-time job a year ago. Without it, I can't imagine how it is possible to pay at current prices, which have increased significantly due to hyperinflation.

There is a difference between saving and investing. If you want to save your money, protect your financial health without any risk, then strategically navigating hyperinflation will require a diversified approach. If you want to have complete financial stability then I would say keep USDT as a stable currency. And if you think your money is willing to grow more in the future then I would say invest in Bitcoin.

What I think is to invest in bitcoin or better still you can save your money on more stable coin like USDT if you are afraid of low volatility of bitcoin. Because keeping your fund in usdt is like freezing your fund against economic inflation which will never affect it. Emaging saving your fund on stable coin and inflation reduce the value of your currency I think the stable coin become a revival of the fallen price of the fiat, there by increasing your fund at that given time.

Fiat even continues to experience a decline in value when inflation is normal or under control. We know that inflation within controlled limits is still considered normal. But the fact is that inflation continues to occur, although slowly. That is why the price of every good will also increase slowly from year to year even in developed countries. And when an economic crisis occurs and when inflation starts to get out of control, that's when the decline in fiat value will occur more quickly. And because what we are talking about is hyperinflation or the peak of inflation which can even make a country economically bankrupt. So in a hyperinflation situation it will really surprise us. Because the decline in fiat value in countries experiencing hyperinflation can even occur by more than 100% in 24 hours. For example, in Zimbabwe there was a price increase of 2x in just 24 hours. And this happens quite often so that residents there even have to carry 1 sack of money just to shop for daily necessities at the market.

And in hyperinflation conditions, perhaps those who will survive are those who have been accustomed to investing since before hyperinflation occurred. And it is very unfortunate that investment literacy is rarely raised, even in high school. Maybe learning about investment will only appear in college curricula. That is why the insight of lower society who cannot even afford to go to high school rarely understands and enters the realm of investment. But I see that thanks to crypto, the term investment has now become more widely known. I don't know how, but nowadays awareness about the importance of investment has spread more widely.

We do know that FIAT do really devalue even though on a slow manner but its not really that advisable on keeping up fiat into your bank account and really keeps hoarding and accumulating.
We do know on how inflation do works and how it do really affects us when it comes to the money that we are really that potentially saving up. This is why it would really be always best that we should
really be that wise on how to combat this thing and for sure people would really be making such step about doing investment or would really be doing up some business to fight up that inflation effect.
Some might really tbat missing out those things but some are really that mindful or having that back up plans already on which it is really that impossible that you cant think off
when you are really that thinking deep thoroughly.

We do know that there are really people who are really that not minding about those probabilities or simpyl having that lacking of knowledge and this is why they do skip out on having
that kind of step or action just because they are really that not aware about those probabilities or it is really just that they cant take up such risks on doing such step
or doesnt really care about that few % devaluing on every year. 

In facing inflationary conditions like today, I am still happy to use Bitcoin as an investment and also consider it an excellent store of value in conditions like today. But on the one hand, I also haven't forgotten about gold as a store of value that I have long relied on besides Bitcoin, so at the moment I am still quite happy to use both for the purpose of storing the value of the assets I already own. Because both are still good enough for me and also for everyone, especially when it comes to investing and storing its value.

I don't have much money to invest in Bitcoin because all of expensive to buy right now, high inflation is badly affected in our life but still I always try to invest something. I will never invest in altcoins because I don't think it can be future safeguard to me and i think most of altcoins scam so i do not recommend to invest your hard earned with altcoins.

We must avoid storing our assets in fiat in the current hyperinflation situation. Because the decline in fiat value is the most frightening when high inflation occurs. An example is what has happened in Zimbabwe and Venezuela. The value of the currency there has even become almost worthless. So rich people who keep their assets in bank savings will definitely fall into poverty when hyperinflation occurs.

Gold will definitely be the main choice for the wider community in this situation. But for those of us who are familiar with Bitcoin, investing in Bitcoin can also be a temporary hedge. The value can even grow if we hold it in the long term. But we also have to be more prepared for the risks we take. However, in a hyperinflation situation, holding fiat is the most dangerous.

I once saw a news program on TV about a country that had experienced hyperinflation. Even in that country, money is scattered on the streets like unused paper. Usually this occurs as a result of errors in managing state finances. or because of continuously printing too much money. If we hold gold, the value of our assets will remain the same and will not change much. But if we want our assets to grow then investing is a risk that must be taken.

The idea of adopting bitcoin and holding is not a bad one, but we must never forget that the most crucial aspect of this is for us to make another alternative something we can rely on without having only a single source for our financial dependency, Incase of any happenings beyond our plan, we can always ha e a backup for it, inflation is when the market price is gone very high that our income level could not afford buying or living to the standard.

Bitcoin is more profitable if one holds it longtime  and should be first Crypto to think of to invest, bitcoin is more reliable and the risk in it can't be compared to that of altcoins.  Inflation in this recent time is really affecting the value of fiat and because of this instead of saving money in fiat it will be better to use bitcoin as a store of value.