bitcoin can overcome but not all, for example is the country of Venezuela where they are exposed to massive inflation because their currencies have experienced a very large decline, so people turn it into bitcoin.
and also many other commodities, you can buy gold, goods that are not affected by inflation.
then Fiat will still apply to buying daily needs.
I think it's not too difficult to exchange your BTC to Fiat it doesn't take long. just a few minutes the most important value of your money still even increase.
Topic: Rate cuts money printing inflation - page 2. (Read 2866 times)
We all ready see this, prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Well, if you consider Bitcoin and gold not a solution to be used as a hedge, then what is the solution to this problem? Will you still only hold Fiat? Obviously not, because fiat will continue to be eroded by inflation.
And maybe Bitcoin and gold are not the perfect assets to be used as hedges. However, Bitcoin and gold can be used as investment portfolio diversification. Under certain conditions, Bitcoin and gold can be the best solution rather than just holding Fiat that's always struggling againt inflation.
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
The discussion gold and bitcoin as a hedge when crisis comes is still a question mark. Some people consider gold and bitcoin to be a hedge, but some also just say that gold can do it. In my opinion, if you are looking for something definite hedge then choose gold, because gold has been proven as a hedge.
Unlike bitcoin, bitcoin has never been through a crisis before, especially in 2008 so I can't clearly say whether bitcoin is capable of hedging, but I really hope that bitcoin can do that, because it can increase price much higher.
If your problem is that you can't buy daily necessities with gold or bitcoin, I don't think it's a problem. The biggest problem is the crisis itself, you will lose more money if you do not invest your money into gold or bitcoin rather than prioritizing daily needs.
We all ready see this, prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Rate cuts are intended to raise inflation towards the inflation target. That's literally what they are for.
I doubt that a single rate cut would have any real long term detriments. Nor is there really any reason to believe that inflation is caused by rate cuts alone - it can be related also to the velocity of money, the money supply, etc. (but of course, interest rates do play a big part).
In regardsr to your point about losing purchasing power, it's not really anything new. There is a reason why a savings account is not considered to be a good store of value, when it's denominated in fiat. When something doesn't have intrinsic value, it's bound to lose value in the long run (except in deflation).
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Definitely that's a long way to go but seriously this issue has been raised all over the community and even the government can't control the inflation rate.
While bitcoin and other cryptos could be our last resort because of its promise of appreciating than deflecting. And we see the first world countries adopting the cryptos and carefully researching how they can innovate more. Don't worry OP, you are in the right track and you'll see in about some years, you will be able to shop with just your phone on your pocket.
This is just the beginning.
Inflation is actually under the control of the government central banks and other financial bodies of the government. However, it is not all the time that the government can successfully control it on a tolerable or even desired level. Sometimes, it goes beyond their percentage target, and moves out of control. And it is during such times that the purchasing power of the fiat currency is getting weak.
It is at these particular times when Bitcoin is the best way to go. Bitcoin is not under any inflation laws or regulation. But the problem is that it is completely under the influence of the public and free market in which a whale could manipulate the prices.
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Definitely that's a long way to go but seriously this issue has been raised all over the community and even the government can't control the inflation rate.
While bitcoin and other cryptos could be our last resort because of its promise of appreciating than deflecting. And we see the first world countries adopting the cryptos and carefully researching how they can innovate more. Don't worry OP, you are in the right track and you'll see in about some years, you will be able to shop with just your phone on your pocket.
This is just the beginning.
Here in India, the reverse is true. Retail inflation came down from 14% to 3% during the last 6 years. Property and rent prices are either stable or declining. So I can't readily agree with you when you claim that inflation is making fiat currency worthless. But that may be the case in other countries, I am afraid. But here, if things go on like this then very soon we'll be having negative inflation.
BTW, gold prices have increased recently. But you can't use that argument to support the theory that fiat currency is becoming worthless. The gold price movement is more related to the market dynamics, such as supply and demand. From what I have seen, apart from gold, many of the commodities have become cheaper during the last few years (electronics, vehicles, and even services).
BTW, gold prices have increased recently. But you can't use that argument to support the theory that fiat currency is becoming worthless. The gold price movement is more related to the market dynamics, such as supply and demand. From what I have seen, apart from gold, many of the commodities have become cheaper during the last few years (electronics, vehicles, and even services).
prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
And that makes this currency much better than fiat. Take the case of that 10k BTC pizza. 10K BTC today is already worth approximately $80 million.
I certainly see your point, but there's nothing guaranteeing that in another 10 years a pizza won't cost 10k BTC again. There has to be demand for bitcoin in order for its price to go up, and based on its volatility I'd say that demand fluctuates wildly.In the event of a crisis, the best way out would be to invest in metals, which are pegged to the Dollar. In a crisis, everything is subject to falling but metals.
Metals are not pegged to the dollar. The dollar used to be pegged to gold, but that ended in the 1970s. Gold, silver, and the rest of the precious and base metals are priced based on open market trading. Hell, if we were still on the gold standard, there would be no way for the Fed to keep printing money. 
Yes, that's right. I also used to think of the world that only uses bitcoin to pay for services. But it occurred to me that no one wants to hold on to a type of asset that is highly volatile and always manipulated by those with a lot of money.
But I still believe that central banks in countries will solve inflation. The recession is coming but we still have gold to hoard, don't worry about fiat money.
But I still believe that central banks in countries will solve inflation. The recession is coming but we still have gold to hoard, don't worry about fiat money.
Gold will get a profit right away, it is already going great recently (as great as gold can get, not compatible to bitcoin when it is on a bull run) but bitcoin will probably take some time. What you have to realize is that gold is directly pegged to dollars, if dollar loses its value then gold increases in value, they are not separated by anything else, even on price changes, we are talking about a limited number of gold in the world and increasing number of dollars hence by theory as long as humanity sees gold as something valuable there will always be an increase in gold.
On the other hand bitcoin is pegged to dollars only in price calculations, they have nothing else in common and even though we think the price of bitcoin will go up when dollar goes down, there is still the fact that people could simply just sell their bitcoins and drop the price at the same time.
On the other hand bitcoin is pegged to dollars only in price calculations, they have nothing else in common and even though we think the price of bitcoin will go up when dollar goes down, there is still the fact that people could simply just sell their bitcoins and drop the price at the same time.
You are right in this statement.
In the event of a crisis, the best way out would be to invest in metals, which are pegged to the Dollar. In a crisis, everything is subject to falling but metals.
Bitcoin itself can be dumped by many who understand this factor to skip their money for gold or silver.
Gold will get a profit right away, it is already going great recently (as great as gold can get, not compatible to bitcoin when it is on a bull run) but bitcoin will probably take some time. What you have to realize is that gold is directly pegged to dollars, if dollar loses its value then gold increases in value, they are not separated by anything else, even on price changes, we are talking about a limited number of gold in the world and increasing number of dollars hence by theory as long as humanity sees gold as something valuable there will always be an increase in gold.
On the other hand bitcoin is pegged to dollars only in price calculations, they have nothing else in common and even though we think the price of bitcoin will go up when dollar goes down, there is still the fact that people could simply just sell their bitcoins and drop the price at the same time.
On the other hand bitcoin is pegged to dollars only in price calculations, they have nothing else in common and even though we think the price of bitcoin will go up when dollar goes down, there is still the fact that people could simply just sell their bitcoins and drop the price at the same time.
What Will be as the Great hedge?
Or we just follow the circles, When inflation high we should just investing borrowing and selling.
If inflation down we should buy Everything?
This repeating process Will be hedge byself?
Do any safe hedge actually Existing?
You should buy the things before the inflation and sell it before the deflation,doing it in the opposite will reduce your total amount of money even if the value is still same.But the best thins is to avoid inflation and deflation by investing on something which has more stable value.AFAIK gold is the best solution to get away from these economical instability. Or we just follow the circles, When inflation high we should just investing borrowing and selling.
If inflation down we should buy Everything?
This repeating process Will be hedge byself?
Do any safe hedge actually Existing?
It's really hard for BTC to be a good hedge because of its volatility. Imagine you wanted to avoid losing your wealth to 2% of inflation per year so you decided to put your life saving in Bitcoin a few weeks.
No one puts his savings in Bitcoin for just a few weeks to hedge fiat's annual inflation.
As you know, Bitcoin might not be the best hedge against inflation short term wise, but if your time horizon is at least a couple of years, the volatile nature of the market in the short term shouldn't be much of a bother with how Bitcoin only needs a couple of months to undo years worth of inflation. Charts don't lie. It's there for everyone to see.
In the end, there is a risk to anything you do. It doesn't matter what asset you choose as hedge against inflation, nothing guarantees that it will work as intended if you only park your capital in that asset for a short period of time.
We all ready see this, prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
If what you're looking more than anything is a hedge against inflation then I have no doubts that at the moment gold is a better option than bitcoin, holding bitcoin for the long term is for those that are looking not only to protect their investment but also to make it grow very rapidly compared to many other types of investments, also it is clear to me that fiat is losing its purchasing power but in most countries the process is still slow so gold is not going to protect you that much from that process as you need to buy gold for a premium and then sell it for a lower price. Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Sure, I can see fiat money losing purchasing power, but it's a very slow process and in some countries like switzerland it's very slow. If a currency is losing 2% a year it's not such a big deal, as it will take 50 years for a product to double in price. The problems begin when you go above 5% inflation because people begin to notice it and worry. As the inflation grows they dump fiat for more stable investments and the economy snowballs into a giant disaster, like in Zimbabwe, Venezuela and Argentina.
If you live in a country with inflation starting to reach 10% it's a good idea to dump all fiat while you still can. If your inflation is at 1% you shouldn't worry... for now, because all fiat currencies eventually die.
If you live in a country with inflation starting to reach 10% it's a good idea to dump all fiat while you still can. If your inflation is at 1% you shouldn't worry... for now, because all fiat currencies eventually die.
We all ready see this, prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
I agree with you that fiat money is no longer valid. The general adoption of bitcoin is a long process. Remember how long people got used to credit cards. It will be the same with bitcoin - at first slowly, but after gaining some critical mass - the process will go exponentially.
First look for the current inflation rate your country has if the rate ranges around 2 to 5% then it is considered healthy
I wouldn't call 5% inflation healthy at all. In fact, it's something I would consider moving to another country for, especially if the taxation system is also designed to empty your pockets.If you think logically, 5% inflation means that your money will lose 50% of its purchasing power in a decade. That's something I only see happen in financially weaker countries.
And now you are just moving out of my point, last time I checked it's about how risky it would be for Venezuela to still pursue in crypto investments as a saving grace for their country and now you are just picking of parts of my statements just to prove a point but I'll give you a worthy reply just to rebut what you are saying. Contrary to popular belief inflation (not hyperinflation) promotes economical growth for the country, it may increase the prices and all but it signifies demand for the products in that country unlike deflation where even if you have a bigger buying power only signifies a decrease in demand that is why they are giving more value for your money, Japan has been battling deflation for years and they still haven't reached their target. And why are you assuming that a 5% inflation rate happens yearly for 10 straight years? Inflation (again not hyperinflation) doesn't work that it is a means to balance out supply and demand if everything normalizes with the help of inflation then we can start to expect a decrease in inflation within a year or so or even by the end of a quarter.
Also stocks prices goes higher not just real estates. It is because of money printing. It is printed to much to revive economy, but it just push up prices of stocks and real estates.
It pushes up everything. What people don't really pay attention to is how much risk capital flows into tech and bio startups with little to no working business model. Cheap money means investors are willing to take higher risks.No way this will drag on for another decade. It's a ticking time bomb that will take down everything with it. I doubt anything but the strongest fiat currencies will be able to preserve wealth during that period of time.
First look for the current inflation rate your country has if the rate ranges around 2 to 5% then it is considered healthy
I wouldn't call 5% inflation healthy at all. In fact, it's something I would consider moving to another country for, especially if the taxation system is also designed to empty your pockets.If you think logically, 5% inflation means that your money will lose 50% of its purchasing power in a decade. That's something I only see happen in financially weaker countries.
What Will be as the Great hedge?
Or we just follow the circles, When inflation high we should just investing borrowing and selling.
If inflation down we should buy Everything?
This repeating process Will be hedge byself?
Do any safe hedge actually Existing?
Or we just follow the circles, When inflation high we should just investing borrowing and selling.
If inflation down we should buy Everything?
This repeating process Will be hedge byself?
Do any safe hedge actually Existing?
We all ready see this, prices specially Property rent and buy prices are going higher.
Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
If you think it's the first time fiat is losing its purchasing power then may be you are someone who has just grown or just gathered his financial knowledge. Fiat is a currency created to lose its purchasing power over time. It's been doing so since it's creation. Inflation is not prices going up it's the purchasing power of your fiat coming down. But the thing is losing purchasing power is actually sign of economic development. As per the Keynesian Theory of Macro Economics Inflation is necessary for economic development. So a crash would occur when the opposite happens which means when the fiat is gaining it's purchasing power. However in any case bitcoin I think might not prove to be a great hedge because it still doesn't has a very well organized spread among the masses which means it can still be purely manipulated pretty easily. Do You think its coused by inflation?
If so do you think the gold and btc Will be hedge?
I think the assets prices going up in Europe, USA, Australia Central Banks just started money printing those 3 countries wich i mentioned above
As we Know in canada there is about to start Economic recessions If they dont start rate cuts like USA, EU, AU just did.
Uk Economic situation is 50/50 it can go down.
Do You personally feel that Fiat Currrency losing slowly puraching power?
I do feel that, but the problem is i cant buy groceries food and daily needs with Bitcoin first i have to Exchange my btc to Fiat, so the Bitcoin and gold is Not really Solution for that problem!!
Jump to: