Topic: My opinion on Inflation w/c affects greatly on fiat currency and how to beat it! (Read 222 times)

There are many ways to protect us from inflation, as you say real estate is another option but that is mostly for those that have a lot of money already because as we know houses and terrains can be very expensive especially if they are in a good location, however for the most part real estate only follows inflation and it does not outperform it like gold and bitcoin can, so while it can be a great way to store your wealth it is not the best if your intention is to multiply it with ease.

I think it is becoming clearer by the day that the current economic system in place cannot be maintained and that precautions need to be taken, and fortunately for us we are invested in bitcoin which is bound to perform greatly once the next crisis comes.

Investment is very important, even if you have a really good job that is paying you lots of money you still have to be investing the money you’re getting. I always divide the money I am getting from work, some of the money goes to savings and the rest goes to investments.

Moreover my investment is not only one, I invest in Bitcoin and mutual funds. They are really helpful and helps you to earn more money and you wouldn’t have problem with inflation. I also hold foreign currencies I believe are doing great. All these things are important, one shouldn’t just leave their money like that and be spending only.

This is actually the result of inflation rate and we are lucky to follow the bitcoin trend where we can store our fiat for the moment to beat the inflation rate and then get back whenever we earn it as a profit through buying when bitcoin is cheap and high when bitcoin will be in bullish trend. Others are investing in gold which is also a safe haven to store the value of fiat into an asset like gold. Others are doing in real estate too but the problem is that real estate needs a good cash to achieve or acquire a certain property that could earn you a passive income like building an apartment or house for rent.

Be very careful, governments know that if they actually disclosed the actual inflation rate people will be very alarmed, most countries that are in a decent shape claim an inflation rate of 3% to 4% but when you begin to monitor the prices of the stuff you buy like gasoline, food, electricity, and other stuff you need to live you will see the inflation is much higher than that.

So while it may seem you are just breaking even with those bonds in fact you are still losing value against inflation since your money buys less than what it did a year ago.

The only way to beat inflation is to make more from it, however do not be fooled to think that you are beating the inflation just because you made more money than the advertised inflation. It is not very well known that the inflation number told to public is almost always wrong and a lie, the reality is much bigger.

I would say grow at least 20% per year if you want to be rich enough to beat it and change your life, if you do under 10% you are not beating anything at all and only keeping your current economy. Also this is not something you can do just for few years, you need to do it for decades in order to be actually wealthy enough to leave work and provide great life to your family as well. Long story short, aiming to beat inflation is not something that would work in the quick term, it is a long term deal.

This is just common sense.Everybody with basic knowledge about economy and finance knows what inflation is and how to protect his savings from it.
You are kinda wrong about inflation being affected by the infrastructure which countries have.
Inflation is basically the money quantity increasing with a bigger speed over the quantity of good and services being produced and sold.Governments and central banks can easily stop inflation,but they don't want to,because inflation actually increases tax revenue.
Investing in real estate and gold are well known ways to protect your capital.Bitcoin isn't in that list due to it's price volatility.

Uhm I don't think what OP said are actually "solutions" since I don't think Inflation would, or should disappear. It's more like ways to avoid being infected by inflation. Inflation itself isn't a bad thing afaik, but exceeding a certain limit would turn inflation into a bad thing. It's closer to running away from inflation if I were to honestly choose a term, whether it was investing via gold, bitcoin, or real estate, though there isn't anything wrong with it.

Additionally, compared to Gold and Real Estate, Bitcoin is a volatile asset. A very volatile one. Using it to avoid inflation seems a mistake since you never know when you might get hit. Although the general idea with Bitcoin right now is you can never lose when investing on it, hey who knows right?

Unless everyone Converts their money into bitcoin And the use case of fiat will be lowered, then it’s possible to lessen the rates but it’s not going to be out forever. I doubt those who are you going To sell their bitcoin are not going to use the money they got from it, then the money still in circulation. Therefore there is no decrease in fiat but Just a conversion.

There's no specific solution to inflation, and it wouldn't be going anywhere.

This is what happens when you know how to work your way around unfair situation, you use them to your advantage.

Inflation is not necessarily a bad thing, if the inflation is kept at bay, it encourages growth in the economy, salary for employees will likely increase. The worst thing that can happen is deflation in value which causes lay offs and lower fiat value. The best thing that you can do to fight inflation is to invest in something that gains interest over time, like stocks, gold and bonds. Crypto is another story because it does not conform whether that fiat inflates, deflates or hyperinflates.

It is a big yes for me. You are totally right to say that investment in real estate is ideal, gold is a safe haven for investors and bitcoin is profitable but risky.

Well, yes bitcoin is risky that if you do not know how to manage the bitcoin market movement and your expectancy. There is no fast and easy money in bitcoin but as what you said that there is a big profit awaits! One must only know when to sell or hold bitcoins and when to buy. This is very crucial in the process of earning and as when you get experience then will become so easy.

To understand the inflation better imagine your money is a snowball you hold in your hands in a sunny day, and you going to climb a mountain using a escalator. But, the escalator is moves you down. Now if you stand still with your funds and thinking you are losing nothing, you are totally wrong because the The heat of your hand plus heat of sun will make you lost your funds. That's how the inflation look like.
People usually invest on gold and real estate and bitcoin. Depending on yourself and the risk you can take you can choose your plan. Real estate is ideal if you have enough money and information about it. For example, you can buy a house and lend it to earn passive income. Gold is always safe haven for the investors and there is less risk on it, but if you are looking for a more profitable investment you can invest on bitcoin however you should always be ready for anything and manage the risk of your investments.

This is related to macro/national economics, so it's somewhat impossible for just anybody to accurately determine this, inflation is a national issue and the thing is imo, as long as one lives in a country hit by inflation, you must invariably be affected by the resultant Increase in cost of living/devaluation of the country's currency in one way or another.

Having said that, I do know Bitcoin for example can be a hedge against inflation since it's a deflationary asset, but this move will most likely work for people who intend on holding for a considerable long time, and only convert back to fiat very little of their stash if they want to meet one need or the other, but if you're just going to buy BTC and convert all of it back to fiat after a little pump in price, then your money is coming back into the 'inflated' system and it's definitely going to be affected, since we're yet to achieve mass adoption (were we can use btc all over the place), and fiat is still used to meet our needs 90% of the time, we can't really beat Inflation if it hits our country of residence.

Bitcoin is deflationary and has a supply limit and that's why it is one of the best assets to beat inflation. Other than that, if someone doesn't like bitcoin then they have other options to choose from other than you've pointed out.

There are stocks and bonds. In bonds, it can be the retail bonds or government bonds and even the banks are offering bonds. But the reality separates that there are still people that are not putting much attention to beating inflation.

I respect your opinion in your own question but for me?

Inflation happens because of the increase in the price of commodities and services and not the other way around. Honestly, Bitcoin IMO isn't money rather it's an asset-backed by the value of a currency which means Bitcoin itself isn't independent in terms of its value instead, it relies upon the value of the currency that determines and gives us information on how worthy is the bitcoin that we have.  We can fairly say that Bitcoin is a deregulated store of value which makes it an asset for no government can imply any law over it and it is being held or used for exchanges by anyone around the globe in the same value, IMO.

Investing in Bitcoin can never solve the crisis in inflation because the value of Bitcoin also rely on the value of unit currency whereas if the fiat currency such as USD experience inflation then Bitcoin also gets affected by it that the cost will be higher per Bitcoin.  Not unless if Bitcoin's value can stand on its own and how many or much bitcoin do you need to spend for getting a haircut without determining the price through any fiat currency because in reality as of today for us to know the amount of bitcoin for every commodity IMO, still rely on the value of this commodity in fiat.

Correct me if I'm wrong with my thought.

Investing in Bitcoins, Gold or Real estate would need initial funds and investments therefore this would not work for a normal person. This would only work for the upper middle class and higher. I do believe that for everything alike one have to understand that, they have to make sure to get :
1. Stable job 2. Get a good education 3. Secure bitcoins and other cryptocurrencies according to themselves, how much they can afford.
But investing is bitcoins should not be the only thing you are doing to stay away from crisis, real estate business is always a good to go. In many countries like Ukraine, there as small town and cities with incredibly low prices of the house and the appartment. But in 2 years I have seen them getting doubled. Now if someone have to invest they can invest strategically. Both in bitcoins and real estate.

- Bitcoins is wonderful but don't rely on just bitcoins since the highs and downs are not something out of the galaxy , you would need a lot of time and patience to encash and therefore you should always have emergency investment in form or gold,. Fiat or something like that too.

Investing in Bitcoin to solve a crisis and stay away from inflation is a very good idea right now. It may have been a bad idea a few years ago, but Bitcoin Halving happened and the supply of Bitcoin on exchanges was getting less and less, and that is why many large hedge funds in the US have participate in investing in it.
I think Gold is now obsolete to hold because the SPDR Gold Trust is holding thousands of tons of gold and they seem to be the only institution that decides the price of gold. Therefore, buying gold and storing is still risky than Bitcoin.

Inflation is a very broad subject. It is not only caused by economic decline, it can also be as a result of boom periods as poor fiscal policies can be implemented at any time. There has been cases in history where a nation has moved into inflation directly after and during periods of economic expansions.

Bitcoin can function as a store of value, but anyone who uses it for such is being exposed to high level of risk; it is highly volatile as opposed to the Gold alternative. This volatility presents a huge opportunity for profit, but it also means the investor could enter the red zone at some point and some end up selling at a loss. You would have to do your own research and fully understand how to profitably hold and manage your portfolio.

Bitcoin does not solve crisis nor can it help an economy, it can be used to escape inflation.

I would like to rephrase this ^ as:
"inflation reduces the purchasing power of each unit of currency, due increases in the prices of goods and services. it's an economics term that means you have to spend more to fill your gas tank, buy a gallon of milk, or get a haircut. In other words, it increases your cost of living."


You can basically reduce inflation by cheaply producing more goods/services than your consumers need and selling them profitably below normal prices.  I think if you allow many people to produces the goods and services in big number (without compromising on standards), competitions amongst them will help drive down the prices

The overall inflation on my country is still fairly low. I invested in some inflation backed bonds in the past, they pay a coupon linked to the inflation rate. So in real terms you don't lose any money. But since the inflation rate is so low there is not a lot of returns earned with these bonds. It is better to just store value.. Going into crypto currencies to avoid inflation is a great idea. For me it's not really why I am buying bitcoins, but it's a great side effect.

Both fiat and bitcoin were considered as money. However, fiat currency is greatly affected by the inflation rate. So, I made some of my opinion in probable cause and how one could beat the inflation rate which greatly affected the fiat currency.

Let us determine what is inflation rate.

What is inflation rate?

This is how the value of fuat currency being affected by the growth of the economy and because we are in pandemic it ia expected that most countries will be getting higher inflation rate percentage.

So how inflation rate could be identify and assess?

This is my opinion below,

First, know the worth of your country. It means the infrastructure, development, asset, investment and etc. Most rich countries had bigger infrastructure, better development and had bigger investments. This determine the value of the fiat.

Second, determine how much fiat money being printed or produce. This will also determine the value of fiat based on supply. The higher the supply of fiat currency (physical money) the lesser its capacity to buy.

Third, the value of economy always affected so it is not stable depending on the income of the country which has been called as GDP. Gross Domestic Product

How the inflation affect the fiat currency?

The lesser the income of the certain the higher it affects the growth of that country which also means that the country will have low ecomic growth and would be lesser in value. Inflation rate will depend on how much country had loss.

How to beat the inflation rate?
My answer could be thru
1. investing Gold
2. Investing in Real Estate
3. invest in bitcoin

Among the three options I had provided, bitcoin is the most unique because it has not been regulated and being i dependent by the growth of the economy. This is why we should continue bitcoin not to be regulated to be always independent among other currencies. At first I hate bitcoin because it has not been regulated but later it turns out that bitcoin does not need  any regulations.

Why is it good to invest in bitcoin?

Because government cannot rule over bitcoin system and the bitcoiners for we are independent and being in decentralized in manner. When you invest in bitcoin and keep it as an asset to sell over a period of time then you can beat the inflation rate that greatly affected the fiat currency. So, never should go for any regulations. We are all good without the government interfering the bitcoiners.

What should be the best thing to do as bitcoiners?
Educate youself to keep away from scammers, hackers and phishers. Make use of the bitcoin system and take advantage especially the volatility of the bitcoin market. Plan ahead of the things which you wanted to do and stick to it and never get intimadated with the market movement of bitcoin.


What do you think of investing in bitcoin to solve crisis and get away with inflation?