Inflation and protecting you wealth | Bitcointalksearch.org

Botnake

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Quote from: Sir Legend on October 05, 2021, 09:39:05 AM

Quote from: paxmao on September 21, 2021, 09:53:30 AM

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.

Right. Investing in bitcoin can be a very good solution so we can protect our own economy from the rising inflation and definitely add more to our stored wealth. Bitcoin can be a very good source of profits and a great store of value which is totally different from fiat to which its value is being depreciated as time goes by. Anything that creates fiat investment will never be as profitable as bitcoin. Same with real estate or stocks investments can be very profitable for long term knowing its value will never go down but in upward trend. Gold might be good but traditional, and its value does not create profits as high as bitcoin.

Sithara007

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Quote from: Sir Legend on October 05, 2021, 09:39:05 AM

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.

Gold is a low risk asset, but the same can't be said about property. During the recession of 2008-09, the property prices in premium locations went down by 50% or more. Even gold dived by almost 50% after the peak of 2012. In a way, the corrections we have with cryptocurrency (2014-15, 2018-19) are also of a similar magnitude. The only difference is that the correction for gold and property is very gradual, and at the most we may have a 3%-4% swing per day (even that much is very rare), while in case of cryptocurrency it is not that rare to get a 20% swing in one day.

Finestream

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Quote from: Kong Hey Pakboy on October 04, 2021, 04:47:21 AM

Quote from: verita1 on October 02, 2021, 05:57:48 PM

People must be educated that to protect themselves from inflation they must invest in bitcoin and cryptocurrencies. Time is giving us the reason bitcoin is being accepted by more people, institutions and countries around the world.

I am proud to witness this moment and contribute a grain of sand to what we believe is a way out for the global economy and the inflation that affects societies.

Even if they're educated, if they don't have a money to guard themselves from inflation, it wouldn't make any difference because they're poor and when you're poor, you're going to have more hard time than everyone.

That's the sad reality of being poor, although you have your dreams to make you progress , but you don't have the sufficient funds to start it all. But here in crypto, you don't really need a huge amount of capital just to invest in bitcoin. You can buy even a fraction of it. I know no matter how poor you are, as long as you have the passion to make your goals in life to be achieve, then you should create an action plan for it. Inflation is something that will keep us spending more so if we want not to feel and experience that, then investing into bitcoin and maybe into some real estate will definitely make us more profitable rather than staying affected with this inflation.

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Quote from: bryant.coleman on October 04, 2021, 02:59:25 AM

Quote from: bitterguy28 on October 04, 2021, 01:02:21 AM

and this is the same reason why crypto is continuously growing because Gold is not performing well while crypto is increasing year after year.
though it is indeed that Crypto is the reason why Gold being outperformed yet this is not enough to hold on to.

I don't know whether there is any link between gold and cryptocurrency prices. Gold prices went up by quite a bit during the 2019-2021 period. During these three years, it went up by almost 60% and this is comparable to the returns from the stock market. So there is no point in saying that the gold investments performed poorly. Stocks, gold as well as cryptocurrency market gave sizeable returns during this period. So we can't really say that growth in one sector is due to lag in any of the other sectors.

Gold has been doing great, for me it was one of the best investments I made back in the day, I bought a ton of gold back in 2014, and ever since then both our fiat value dropped like crazy compared to rest of the world, but also gold prices went up like crazy as well. Which is basically how I started on investment world as well, I knew about crypto back in those days as well, I was involved and I was here, and I did had some small investments here too but I got out way too early.

If I put all my money into crypto in 2014, even if it was at the peak of 1400 dollars at the time (which I wouldn't) that would have been nearly 30x return minimum right now, probably a lot more since I could have bought cheaper and I would have waited for 100k, it is just surreal to think that gold has been so great for me and yet it is still nowhere even close to what bitcoin could be, don't get me started on what early ETH would have made me.

Sir Legend

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Quote from: paxmao on September 21, 2021, 09:53:30 AM

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.

AicecreaME

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Quote from: paxmao on September 21, 2021, 09:53:30 AM

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Inflation is inevitable as much as we don't want it. So it's really better to store your funds in something that is lesser prone to inflation. Personally, I am into bitcoin investment and real estate because I think these two are of great store of value. If ever things go haywire in the future I will still have my funds readily available in bitcoin and I will still have assets such as real estate properties that I can sell with higher value because it appreciates as time passes by.

Bitcoin and real estates are my personal picks. Maybe I will consider stocks if ever I got the chance to familiarize its workarounds. But as of now, I'm sticking with these two as my way of defense from inflation. Commodities are nice as well because they can be traded with other goods. This is ideal to either be in buy and sell or hold depending on its type. Art would be last on my list because I don't think people would prioritize this thing the moment inflation arises. Except of course if the art is something remarkable, famous, and extraordinary. If this is the case, its value can appreciate as well and can be bought by the elites at a higher price making it a good way to generate profit over time.

Kong Hey Pakboy

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Quote from: verita1 on October 02, 2021, 05:57:48 PM

People must be educated that to protect themselves from inflation they must invest in bitcoin and cryptocurrencies. Time is giving us the reason bitcoin is being accepted by more people, institutions and countries around the world.

I am proud to witness this moment and contribute a grain of sand to what we believe is a way out for the global economy and the inflation that affects societies.

Even if they're educated, if they don't have a money to guard themselves from inflation, it wouldn't make any difference because they're poor and when you're poor, you're going to have more hard time than everyone.

bryant.coleman

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Quote from: bitterguy28 on October 04, 2021, 01:02:21 AM

and this is the same reason why crypto is continuously growing because Gold is not performing well while crypto is increasing year after year.
though it is indeed that Crypto is the reason why Gold being outperformed yet this is not enough to hold on to.

I don't know whether there is any link between gold and cryptocurrency prices. Gold prices went up by quite a bit during the 2019-2021 period. During these three years, it went up by almost 60% and this is comparable to the returns from the stock market. So there is no point in saying that the gold investments performed poorly. Stocks, gold as well as cryptocurrency market gave sizeable returns during this period. So we can't really say that growth in one sector is due to lag in any of the other sectors.

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Quote from: Sithara007 on October 03, 2021, 11:45:59 PM

Quote from: blockman on October 02, 2021, 06:50:59 PM

Yes, gold's profitability is low because it can be compared to bitcoin's profitability. But for some conservative investors, they'll gold over bitcoin because it's tested by time and very common as a traditional asset that will surely be chosen by everybody.
As long as you do your thing of protecting your money from the inflation then that strategy fits your investing technique and tolerance towards risk that it has.

Gold hasn't performed well over the last decade. If you check the historical prices, there is no real change in gold prices between the ones we had in 2011 and the current prices. Gold production has increased over the years, while the demand has remained near constant. That may be one of the reasons. Two of the most important consumers are India and China and the demand has fallen in these two markets. In case of India, the government imposed additional taxes and that crashed the global gold prices almost immediately.

and this is the same reason why crypto is continuously growing because Gold is not performing well while crypto is increasing year after year.
though it is indeed that Crypto is the reason why Gold being outperformed yet this is not enough to hold on to.

Sithara007

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Quote from: blockman on October 02, 2021, 06:50:59 PM

Yes, gold's profitability is low because it can be compared to bitcoin's profitability. But for some conservative investors, they'll gold over bitcoin because it's tested by time and very common as a traditional asset that will surely be chosen by everybody.
As long as you do your thing of protecting your money from the inflation then that strategy fits your investing technique and tolerance towards risk that it has.

Gold hasn't performed well over the last decade. If you check the historical prices, there is no real change in gold prices between the ones we had in 2011 and the current prices. Gold production has increased over the years, while the demand has remained near constant. That may be one of the reasons. Two of the most important consumers are India and China and the demand has fallen in these two markets. In case of India, the government imposed additional taxes and that crashed the global gold prices almost immediately.

dezoel

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Quote from: pinggoki on October 03, 2021, 02:31:16 AM

For regular people like 80-90% of the people in this forum, accessibility is the most important thing because how would you be able to enjoy the benefits of something if you can't get your hands into it. So people here would probably use cryptocurrencies as a way to combat inflation and keep the value of their wealth safe and secured. For some others who could afford the finest things in life, real estate and art could work well for them. Personally, Bitcoin is my go-to in ensuring that I don't lose over inflation.

I would assume that it is not simply just access that we love but also the fact that we actually own our money for the first time ever. When you put your money in a bank, that bank uses your money to do whatever they want, did you know that if every single in the world ended up withdrawing their money from the banks, world banks would not be able to pay everyone? It means they are a ponzi scheme, think about it, ponzi schemes do not have the money they claim they have and if everyone withdraws their money then scheme collapses, same goes for banks because they do not have the money they claim they are holding for people.

This is why I believe that the best course of action would be going to crypto, at least for me because I own my money, it is in my wallet and nobody else can do anything with it, not loan it out or invest it, it is mine. That is what intrigued me to begin with, then of course access became something too in the long run along with few other things but it was the ownership that gave me my first start.

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For regular people like 80-90% of the people in this forum, accessibility is the most important thing because how would you be able to enjoy the benefits of something if you can't get your hands into it. So people here would probably use cryptocurrencies as a way to combat inflation and keep the value of their wealth safe and secured. For some others who could afford the finest things in life, real estate and art could work well for them. Personally, Bitcoin is my go-to in ensuring that I don't lose over inflation.

Quote from: Ems. on October 01, 2021, 03:48:05 PM

Exactly,different status ,considered one of inflation,we have different needs in our daily life,more demands,of people but costs is slowly because of status in life a lot of people" unemployment".So,best way to gain and maintain wealth ,EDUCATION,must and important ,is every one ,EDUCATED.So ,cost of living can raise individuals and success there living status.

It's almost obvious at this point that people will choose whatever is more accessible and available to them, especially if they do not have the privilege to acquire or be given choices to begin with. Art may have better longevity and greater profit margin but then again we have to remember that not everyone of us have the money to get even the cheapest masters' painting on the market or available for auction.

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Quote from: LastKiss on October 02, 2021, 06:40:31 PM

If I want to protect my money from inflation, then gold will be my best option. But gold only protect my money from inflation and their ROI for some years is low for me, so I choose some alternative that's buy a real estate and try to rent it so I can get passive income along with the increase property price and my second alternative is get a lot of stocks or crypto which give you dividend/having staking option (for crypto) and then wait for 5 years I will get massive ROI.

Yes, gold's profitability is low because it can be compared to bitcoin's profitability. But for some conservative investors, they'll gold over bitcoin because it's tested by time and very common as a traditional asset that will surely be chosen by everybody.
As long as you do your thing of protecting your money from the inflation then that strategy fits your investing technique and tolerance towards risk that it has.

LastKiss

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Quote from: paxmao on September 21, 2021, 09:53:30 AM

I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

If I want to protect my money from inflation, then gold will be my best option. But gold only protect my money from inflation and their ROI for some years is low for me, so I choose some alternative that's buy a real estate and try to rent it so I can get passive income along with the increase property price and my second alternative is get a lot of stocks or crypto which give you dividend/having staking option (for crypto) and then wait for 5 years I will get massive ROI.

verita1

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People must be educated that to protect themselves from inflation they must invest in bitcoin and cryptocurrencies. Time is giving us the reason bitcoin is being accepted by more people, institutions and countries around the world.

I am proud to witness this moment and contribute a grain of sand to what we believe is a way out for the global economy and the inflation that affects societies.

Viscore

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Quote from: Ngewex Yuk on October 01, 2021, 11:26:09 AM

Inflation is a serious problem in the country's economy, various steps are taken to overcome inflation, of course not all steps can be successful, for me to overcome inflation the easiest thing is to strictly control spending, unnecessary things are better not to buy, and other things is to increase income from various types of investments and cryptocurrencies are an easier and more profitable type of investment.

Investing in cryptos is the best option i think aside from buying properties that are also very expensive by now. Inflation continues and will even keep soaring high in the next months so probably if you don't take steps to conquer inflation, then your own economy will crash soon. And i don't want to wait it to happen to me so it's a good thing that i have invested in bitcoin and some potential altcoins when the inflation was not that high. Right now, i am already earning a good amount of profits from crypto which helped me not to be affected that much with this inflation.

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Quote from: Doell on October 01, 2021, 01:55:17 AM

If that's the case then what I have to do is buy more goods early on whether it's tools or open services because of my expertise in air conditioning repair services or build a house ,well I can be anything in terms of service also because some people will likely continue to build properties for it
besides that I can buy gold or other stocks that are profitable with rising inflation ,bitcoin or any other crypto is my priority before anything else
I also happen to be able raise animals which is the easiest thing to do without experience too because animals will breed and can be profitable continuously
without people knowing small things will become big especially during inflation

I would say that buying real estate in order to protect your wealth is a big entry price. I would love to do that, even for very small places that I could afford to buy, I looked for places that were seized by banks from people who did not pay their loans, those places are cheapest because banks are only allowed to sell it for whatever the loan debt was left, so if that guy had 14k dollars left for a great house (which would not make sense but this is an example) that 300k dollar worth house will be up for auction at 14k, which could be a lot more by the auction end time but would probably still be cheaper than what it should worth.

Even with those, I just do not have enough money, the only "asset" I could buy with my money right now would be a second hand, crashed, can't be fixed car to buy and rip apart to sell for parts at this point, which is not an investment at all, who would want that aside from mechanics who would do that.

Ems.

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Exactly,different status ,considered one of inflation,we have different needs in our daily life,more demands,of people but costs is slowly because of status in life a lot of people" unemployment".So,best way to gain and maintain wealth ,EDUCATION,must and important ,is every one ,EDUCATED.So ,cost of living can raise individuals and success there living status.

Ngewex Yuk

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Inflation is a serious problem in the country's economy, various steps are taken to overcome inflation, of course not all steps can be successful, for me to overcome inflation the easiest thing is to strictly control spending, unnecessary things are better not to buy, and other things is to increase income from various types of investments and cryptocurrencies are an easier and more profitable type of investment.

Victorycoin

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The central bank's basic interest rate is often used to fight inflation whatever is enough but if it is high, the money is more expensive cryptocurrency is a universal way to save money since it is not tied to anything. Although there are fiat pairs such as btc usd and ruble bitcoin its very essence is a separate segment of the economy there are opinions that must come during the new global crisis that cryptocurrency is extremely valuable in price as an alternative to maintaining its value.

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