Inflation overpowers the value of money - page 5.

bayu7adi

hero member

Activity: 1358

Merit: 538

paper money is going away

Quote from: Unbunplease on August 03, 2023, 03:51:04 PM

How investing in bitcoin helps avoid inflation. The price of bitcoin goes up and down. There is no certainty that the price will constantly recover. The price may reach its limit and bitcoin may be abandoned, pushing cheaper assets into the mainstream

Bitcoin's volatility indeed confirms its potential as a haven against inflation, as it remains impervious to the abrupt impact of inflation in any given country. Instead of allocating 100% of our assets to FIAT, which is inevitably prone to annual inflation, I find it wiser to diversify a portion of our holdings into alternative assets like stocks and Bitcoin. Diversification becomes essential to safeguard the value of our assets, or even better, to witness them grow.

However, I must acknowledge that Bitcoin carries substantial risks. As you rightly pointed out, any asset, including Bitcoin, could face the risk of being abandoned by the masses. We cannot prevent people from selling their Bitcoin and potentially deserting it. Undertaking such a venture requires a willingness to assume considerable risk and mental fortitude.

In essence, exploring avenues like Bitcoin can be a prudent strategy to protect against inflation, but it demands a careful balance of risk management and preparedness to face the uncertainties that come with it.

sunsilk

hero member

Activity: 2884

Merit: 620

Quote from: ChiBitCTy on August 03, 2023, 07:57:03 PM

FINANCE TIP: Never keep your cash savings at a regular type bank accounts such as Chase/Wells Fargo/etc. Make sure you use online banks (or some credit unions) which offer much higher interest rates. Bannkrate.com does a good job of showing who's currently got the best rates. Just for example Chase banks and Bank of America (the worlds two largest banks)savings accounts have an annual interest rate of .01%. Ally Bank has an annual interest rate of 4%. One is keeping up with inflation and one isn't even close..ie you're losing money in it! INSANITY

I agree, there are online/digital banks that are offering better rates for an annual rate if you ever choose them to deposit your money. And the catch is that you're also free to withdraw it anytime at your own will.

Before, I was a fan of time deposits but I've learned it all along that it's good to get into it if the rate defeats the inflation rate that your country is experiencing. Otherwise, it's much better not to keep it there and find a better asset or investment that will earn more than the inflation rate so that you'll retain your wealth and its value.

Sayeds56

copper member

Activity: 1260

Merit: 698

Eloncoin.org - Mars, here we come!

Quote from: retreat on August 04, 2023, 05:41:29 AM

Actually talking about inflation is a complex matter and requires in-depth study on this matter. But as far as I understand that inflation is actually needed by a country to be able to control their economy and their currency. But of course the government's inability to control inflation will be fatal for them, because it will cause chaos in their economy and there will be many people who have difficulty being able to buy their needs because of rising prices. That's why smart governments need to be able to manage inflation and deflation in their countries so that this will not affect the economy and the value of their currency.

You are absolutely right, inflation is a complex and multifaceted phenomenon, and its not always bad for the economy. Government often utilize this tool it to stimulate the economy and sustain business activities. In fact, it is better than deflation that slows down the economy and causes job losses. Therefore, it can play a constructive role in maintaining a healthy and dynamic economy when used prudently.

retreat

sr. member

Activity: 1008

Merit: 371

Actually talking about inflation is a complex matter and requires in-depth study on this matter. But as far as I understand that inflation is actually needed by a country to be able to control their economy and their currency. But of course the government's inability to control inflation will be fatal for them, because it will cause chaos in their economy and there will be many people who have difficulty being able to buy their needs because of rising prices. That's why smart governments need to be able to manage inflation and deflation in their countries so that this will not affect the economy and the value of their currency.

Sayeds56

copper member

Activity: 1260

Merit: 698

Eloncoin.org - Mars, here we come!

Quote from: Poker Player on August 02, 2023, 11:15:14 PM

You left out a very important one: high energy prices, which affect everything. If gasoline and electricity prices go up, you not only pay more to fill up the tank and for the electricity in your house, you will also pay more for groceries, for example.
In fact, the inflation we have been experiencing for a couple of years now is mainly due to energy prices and massive post-covid printing. Then it was exacerbated by the Ukrainian war, but it started earlier.

Indeed, energy prices play vital role in influencing the fluctuation of inflation rate, and it is an important component of consumer price index (CPI). We have witnessed how sharp the prices of energy surged aftermath of Russia Ukraine war due to supply chain disruptions, which subsequently caused rapid increase in inflation. This situation serves as a good example that how fluctuations in energy prices can trigger sharp increase in inflation within short timeframe.

EarnOnVictor

hero member

Activity: 644

Merit: 592

Leading Crypto Sports Betting & Casino Platform

Quote from: AicecreaME on August 03, 2023, 08:27:58 AM

Inflation exist because of fiat, for me they are just one.

You must be ignorant of this economics, inflation exists because of an economy, and whether it's fiat or anything else, the price of commodities may still rise. If you heard stories from the olden days when trade-by-barter happened, inflation also happened and it's simply because someone or sector(s) increases the price/value of their commodities/properties to sell and others follow that trend. It might go on like that until the situation is cautioned.

Not even Bitcoin can stop inflation, it's economic-bound. If the whole world stops fiat and starts spending Bitcoin, do you think there will not be inflation? Then you are a joker.

Inflation is induced by the economy and bad policies, not flat, except that people will know the effect through the country's currency (fiat). You guys are only mistaken this because of the investment opportunity in Bitcoin, but this will change if Bitcoin is being spent in place of other currencies.

awik p

full member

Activity: 1526

Merit: 111

Pepemo.vip

Quote from: Negotiation on August 03, 2023, 10:51:14 PM

This devaluation of money is one of the main causes of inflation. The government has had to increase the prices of gas, oil and electricity at various times due to the increase in prices in the international market. This has resulted in increased cost of production and inflation within the country. A number of products are exported at a large rate despite not being enough to meet the domestic demand of the country. There is a shortage of goods within the country and the price of these goods increases. Market regulation is also needed to prevent inflation. Since this is a private sector matter, the task is not easy For this, the government should use its tools and increase monitoring.

an increase in that sector does affect other increases, and inflation cannot be avoided anymore, because basic materials such as oil for example, of course, will increase production costs in which their distribution will also increase. and in the end it is the people who feel the impact, therefore government supervision is very important considering that inflation seems unavoidable but at least the government can control it so that people do not suffer too much

Negotiation

sr. member

Activity: 1036

Merit: 258

★Bitvest.io★ Play Plinko or Invest!

This devaluation of money is one of the main causes of inflation. The government has had to increase the prices of gas, oil and electricity at various times due to the increase in prices in the international market. This has resulted in increased cost of production and inflation within the country. A number of products are exported at a large rate despite not being enough to meet the domestic demand of the country. There is a shortage of goods within the country and the price of these goods increases. Market regulation is also needed to prevent inflation. Since this is a private sector matter, the task is not easy For this, the government should use its tools and increase monitoring.

yhiaali3

legendary

Activity: 1680

Merit: 1853

#SWGT CERTIK Audited

Quote from: Promocodeudo on August 02, 2023, 06:48:07 PM

2. Unwanted and unstable government policy: the government policy most times are unfriendly and it is repeatedly done, just for example allowing the importation of already existing good to there country, instead of boosting the production of such goods to meet it's citizens consumption.

Yes, I can give an example of this from my country. We had local sugar production here through the cultivation of sugar beets, but due to the government's stupid policy and corruption, one of the merchants was allowed to import sugar at high prices, which caused the elimination of local sugar production.

Instead of the government encouraging and supporting farmers to continue growing beets to support the production of local sugar at cheap prices, it allowed merchants to import sugar from abroad, which caused the elimination of beet cultivation as well as local sugar production.

Darker45

legendary

Activity: 2562

Merit: 1854

🙏🏼Padayon...🙏

Quote from: ChiBitCTy on August 03, 2023, 07:57:03 PM

FINANCE TIP: Never keep your cash savings at a regular type bank accounts such as Chase/Wells Fargo/etc. Make sure you use online banks (or some credit unions) which offer much higher interest rates. Bannkrate.com does a good job of showing who's currently got the best rates. Just for example Chase banks and Bank of America (the worlds two largest banks)savings accounts have an annual interest rate of .01%. Ally Bank has an annual interest rate of 4%. One is keeping up with inflation and one isn't even close..ie you're losing money in it! INSANITY

This! I can only hope that everybody here in my country will soon be digitally literate that they will finally eschew keeping savings account in brick-and-mortar banks and shift to digital banks. Savings in traditional banks earn interests that are much lower than the inflation rate. In other words, you're saving money to die, slowly but surely.

In this digital age, traditional banking is biting the dust. Popular GCash here in my country offers 2.6% annual interest. PayMaya, on the other hand, offers a base interest of 3.5%. There are others. They all offer much higher interest rates per annum. Fintech is fast developing. It's about time we ditch these old banking style.

ChiBitCTy

legendary

Activity: 2240

Merit: 3002

Nice write up here. This is something that I'm often discussing for work. Here in the United States inflation rose to 40 year highs, somewhere around the level of 9-10% (on average). Some stuff inflated 60-7-80%...crazy stuff. Like seafood for example exploded. Thankfully we've managed to get it to come back down to earth..where they say it's around 4% or so, but I still feel like it's much higher.

FINANCE TIP: Never keep your cash savings at a regular type bank accounts such as Chase/Wells Fargo/etc. Make sure you use online banks (or some credit unions) which offer much higher interest rates. Bannkrate.com does a good job of showing who's currently got the best rates. Just for example Chase banks and Bank of America (the worlds two largest banks)savings accounts have an annual interest rate of .01%. Ally Bank has an annual interest rate of 4%. One is keeping up with inflation and one isn't even close..ie you're losing money in it! INSANITY

AmoreJaz

legendary

Activity: 3066

Merit: 1101

Leading Crypto Sports Betting & Casino Platform

Quote from: shinratensei_ on August 03, 2023, 07:01:35 PM

well the worst thing is that, we can do nothing to prevent such inflation from reducing the value of our money which in turn also reducing our buying power, its just how it is and I guess we should just move on and instead
try to find another source of income, honestly considering the fact that having less than 2% inflation rate is already considered as good, regardless its still inflation occurring towards the economy overall, it still means loss overtime towards our assets, it just means that just saving up the money in bank will instead cause us to lose money, the wisest decision nowadays is to invest and also add source of income. that way we will be spared from these inflations.

how we survive the inflation really depends on how we attack this kind of problem. should look at personal level, on how we can address this like finding side jobs, reducing costs, not buying luxury items or tending your own garden. we can't rely from our government so we need to find ways how to help ourselves in this situation. blaming the government won't do any good.

shinratensei_

legendary

Activity: 3080

Merit: 1024

Leading Crypto Sports Betting & Casino Platform

well the worst thing is that, we can do nothing to prevent such inflation from reducing the value of our money which in turn also reducing our buying power, its just how it is and I guess we should just move on and instead
try to find another source of income, honestly considering the fact that having less than 2% inflation rate is already considered as good, regardless its still inflation occurring towards the economy overall, it still means loss overtime towards our assets, it just means that just saving up the money in bank will instead cause us to lose money, the wisest decision nowadays is to invest and also add source of income. that way we will be spared from these inflations.

Fivestar4everMVP

legendary

Activity: 2254

Merit: 1052

Leading Crypto Sports Betting & Casino Platform

I am not an economist, but i do know the physical effect of inflation on fiat currencies , and also know that it doesn't promote economic growth both in the short and long term, but rather, create hardship based majorly on the high cost of living, which also is always as a result of inflation devaluing the currency, causing the price of things to skyrocket over the roof.

As long as this world is concerned, ive said it one time here that, we can never have a perfect system, or perfect economy, and a fiat currency that does not loss value over time, paper money can never maintain its value long term, and why?, lets not dive deep into the intrics, but lets put things in a layman's language, some thing a five years old child can understand, paper money is unlimited in production and circulation, as long as government keep printing more money , not minding how much money is already in circulation, paper money will continue to lose value overtime, the more common something becomes, the more the society values it less - this is a common rule.

STT

legendary

Activity: 3878

Merit: 1411

Leading Crypto Sports Betting & Casino Platform

Its not certain or absolute that a paper note for money must lose money. If we have a fixed ratio of paper to a set value then it cannot lose value in that normal way except by default otherwise its just a paper equal and has utility by means of easier circulation and divisibility. Unfortunately what has happened is the ratio of value to nominal paper note figure is variable and invariably the ratio loosens almost constantly.
By design central banks are determined we have inflation of 2% per year so that much is true, they have no target to maintain value. Over the course of your life 2% is alot of accumulated losses. Factors to look at are fiscal deficit and trade deficit, both these things will indicate acceleration of losses.

Emmanuelex

jr. member

Activity: 105

Merit: 1

This is the state of some countries today, especially in the third world. The governments are just borrowing lots and lots of money. A new government gets into power, and the first thing they do is to borrow money and hang it on the neck of the country when they leave office after embezzling money. They don't even invest government money in funding local production, rather they would be relying on importation. This is killing a lot of countries, seriously.

Onyeeze

full member

Activity: 504

Merit: 154

Quote from: Unbunplease on August 03, 2023, 03:51:04 PM

Quote from: Onyeeze on August 03, 2023, 03:18:48 PM

It depends the country you are living, inflation can't be overpowered money but the thing is that I understand that because of the rate of inflation now you may conclude that inflation over power money, but I don't believe such because their is multiple ways money can over escape inflation, you can escape inflation through investing to a place inflation will not affect and investing in bitcoin should be one of the roots to escape inflation as I assumed.

How investing in bitcoin helps avoid inflation. The price of bitcoin goes up and down. There is no certainty that the price will constantly recover. The price may reach its limit and bitcoin may be abandoned, pushing cheaper assets into the mainstream

I said investing investing in bitcoin will help to escape inflation, why do you think that during inflation depending on the country you base you will see many people rushing to invest their money on bitcoin, what they doing is to retain the value of their currency so that it will not depreciate in value, and they know that bitcoin have two regulations and the two regulations is either bitcoin fall and they make loss or bitcoin increase and when bitcoin increases the investor have escaped inflation at that moment

Johnyz

full member

Activity: 2086

Merit: 193

Quote from: Unbunplease on August 03, 2023, 03:51:04 PM

Quote from: Onyeeze on August 03, 2023, 03:18:48 PM

It depends the country you are living, inflation can't be overpowered money but the thing is that I understand that because of the rate of inflation now you may conclude that inflation over power money, but I don't believe such because their is multiple ways money can over escape inflation, you can escape inflation through investing to a place inflation will not affect and investing in bitcoin should be one of the roots to escape inflation as I assumed.

How investing in bitcoin helps avoid inflation. The price of bitcoin goes up and down. There is no certainty that the price will constantly recover. The price may reach its limit and bitcoin may be abandoned, pushing cheaper assets into the mainstream

There’s no way to avoid inflation but if you want to earn more over the inflation rate, then investing are one of the option that you can have and Bitcoin is also there. BTC is volatile anyway, there’s no assurance for the profit but of course if you know what you are doing I’m confident that you can beat Inflation with your Bitcoin investment, all you have to do is to be more professional and trade confidently.

Abu-Naim

sr. member

Activity: 420

Merit: 262

Quote from: Promocodeudo on August 02, 2023, 06:48:07 PM

The causes of high inflation can be attributed to the following:
1. Excessive Government borrowing
2. Unwanted and unstable domestic policy
3. Unsatisfiable or lack of domestic production

These variables do contribute to an increase in inflation in a country, starting with their currency depreciating against the currency of the nation from which they borrow money or from which they buy products since they must convert it before buying the items they want.

If the government begins to borrow money from other nations, it is a sign that they are losing their moral authority because they are unable to generate enough income to meet their needs. Furthermore, taking on too much debt renders a nation economically helpless because its leaders will be preoccupied with finding ways to repay their debt rather than developing productive ideas, which will ultimately lead to the collapse of the nation and make life difficult for its people.

livingfree

hero member

Activity: 2786

Merit: 578

Quote from: Promocodeudo on August 02, 2023, 06:48:07 PM

The causes of high inflation can be attributed to the following:
1. Excessive Government borrowing
2. Unwanted and unstable domestic policy
3. Unsatisfiable or lack of domestic production

And all of that results to low gdp as well.

Quote from: Porfirii on August 03, 2023, 03:22:43 PM

In my country, some people talk about the "inflation of the excuses": Ukraine is at war? let's increase the price of everything; people keeps buying? let's keep increasing them.

I think this can be found everywhere. I hate to admit that I've observed the same thing that these things aren't just the result of the war. While many businessmen and merchants are just taking advantage of the situation.

Oil price goes up and being followed by the goods, and when it goes down these businessmen and merchants won't just go back to what it should be and they'll reason still about the inflation and high cost of everything.

Topic: Inflation overpowers the value of money - page 5. (Read 948 times)