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Topic: Rate cuts money printing inflation - page 3. (Read 2866 times)

hero member
Activity: 1820
Merit: 515
★777Coin.com★ Fun BTC Casino
September 30, 2019, 12:25:57 PM
#13
Price of a product increases for two reasons,the one is primary increase in demand and decrease in the supply of the product will relatively increases the prices so lets take that property buy here,the land might not be available at the place you are looking to buy in vast then the prices will be higher and higher.Inflation also causes the price to be increase which doesn't alter the value of product only increases the figures to be gives to buy it.
legendary
Activity: 2730
Merit: 1288
September 30, 2019, 11:19:37 AM
#12
We all ready see this, prices specially Property rent and buy prices are going higher.

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. Companies buy back their stocks. Peopel take loans to buy houses and pay back less then they borrow.  It is of course super nice until it will last Smiley
hero member
Activity: 1680
Merit: 655
September 30, 2019, 08:45:44 AM
#11
We all ready see this, prices specially Property rent and buy prices are going higher.


Do You think its coused by inflation?  

Price increases on basic goods and needs are basically caused by inflation but you need to considere other factors why it had even increased in the first place. First look for the current inflation rate your country has if the rate ranges around 2 to 5% then it is considered healthy and its not one of the main factors why the prices went up secondly you can look at other factors such as tax increase most specifically excise taxes related to that product if an excise tax is issued on the most basic of the goods like gas then a lot of industries including housing can be affected.
sr. member
Activity: 756
Merit: 251
September 30, 2019, 08:34:12 AM
#10
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!!  

It is by design that the fiat currency is depreciating rather than appreciating. That is precisely the logic behind the rising prices of goods and services, and of course together with salaries and benefits to cope up with the former. That is why it is not advisable to save too much money in the banks. It is better to invest or save on properties whose value appreciates rather than depreciates such as real estate properties. And if one saves money in the banks, it will have to earn a regular interest. The problem occurs if the interest earned is lower than the inflation rate. That would spell disaster.

Bitcoin, on the other hand, is appreciating. And so its purchasing power is rising instead of decreasing. 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.
hero member
Activity: 2702
Merit: 672
I don't request loans~
September 30, 2019, 02:34:22 AM
#9
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!!  

Gold is a lot better of an option to use as a hedge than bitcoin. Bitcoin, on the other hand, is a lot more volatile than gold and could change rapidly in a short span of a few hours so you can't really use it as a hedge. Inflation can rapidly change the price of commodities in areas affected and as volatile as bitcoin is, it couldn't really support you when inflation comes.
Besides, crypto hasn't really been able to spread globally or at least is not yet accepted globally so it is difficult to turn to it as a hedge. You can hold bitcoin by using a part of your current assets but reserving some in case of emergencies is needed since you cannot ensure that the amount you used to buy bitcoin would still be the same when you sell it.
hero member
Activity: 3150
Merit: 937
September 30, 2019, 02:24:55 AM
#8
Quote
Do You think its coused by inflation? 

Do You personally feel that Fiat Currrency losing slowly puraching power?

You are asking stupid questions.Off course that the inflation causes prices to do up and the money to lose it's purchasing power.Just read more books about macroeconomics and finance.Fiat money are designed to lose their value,because they are just debt.The only protection against inflation is just to make more money and diversify your portfolio of assets.Bitcoin isn't an "easy solution" against inflation.
legendary
Activity: 3080
Merit: 1500
September 30, 2019, 01:36:32 AM
#7
We all ready see this, prices specially Property rent and buy prices are going higher.

Do You think its coused by inflation?  

It depends on the country and locality. There are many places where the housing bubble had taken the price to astronomical high earlier but not getting reduced. Inflation is just one of the catalysts.

Quote
If so do you think the gold and btc Will be hedge?

Gold and other precious metals are definitely a hedge but not bitcoin. Even though bitcoin is limited in numbers.

Quote
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!!  

It's true that fiat system is slowly getting devalued and the central banks needs to put similar percentage of money into the economy every year.

But bitcoin or any other cryptos can't be a solution to it, not at least at the global level. Cryptos are not yet accepted globally and a lot of countries are still in dilemma whether to legalize it or not!

Gold and other precious metals like Silver is a great alternative to maintain personal finances afloat during hard times, but not bitcoin unless you are an early adopter.
copper member
Activity: 2324
Merit: 2142
Slots Enthusiast & Expert
September 29, 2019, 09:38:52 PM
#6
Well actually Bitcoin can be the answer to that problem and it is very evident in countries like Zimbabwe and Venezuela where they are struggling with hyperinflation. In these countries it is not strange for Fiat currencies to lose value daily and people are turning to Bitcoin to protect the buying power of their local Fiat currency.
How? What do you propose? People of Zimbabwe and Venezuela all buying BTC?

If so do you think the gold and btc Will be hedge?
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. By today you'd lose 20% of your wealth already

What about scalability and utility problem?
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!!  
hero member
Activity: 1834
Merit: 759
September 29, 2019, 08:54:19 PM
#5
If so do you think the gold and btc Will be hedge?

Gold is often perceived as a great hedge against inflation, but there's actually data suggesting that that's only true when inflation is in significant levels. [1][2]

Bitcoin shares a few properties with gold so it may act the same way, but being relatively young, we don't really know yet. I don't think we've even seen price growths that could be attributed to inflation -- that might be because like gold, Bitcoin does not react to "normal" levels.

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're not anticipating Venezuela levels of inflation, it should be safe to keep a portion of your wealth in fiat. You don't have to go all-in on gold and Bitcoin, as they're more for long-term protection anyway.
legendary
Activity: 3542
Merit: 1965
Leading Crypto Sports Betting & Casino Platform
September 29, 2019, 03:04:39 PM
#4
Well actually Bitcoin can be the answer to that problem and it is very evident in countries like Zimbabwe and Venezuela where they are struggling with hyperinflation. In these countries it is not strange for Fiat currencies to lose value daily and people are turning to Bitcoin to protect the buying power of their local Fiat currency.  Wink

Looking at the long-term, Bitcoin's value are steadily going upwards, where Fiat currencies are losing buying power daily. Inflation is just a small piece of a system that are doomed to failure.  Sad
hero member
Activity: 1148
Merit: 523
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September 29, 2019, 03:04:00 PM
#3
Personally I will believe the Federal reserve tied banking system. They can print the money whatever they wish means then there is no control or reconlisation with that. If there best option for it means you need to choose the BTC and Ethereum only as a option.

Fiat is being controlled by some giants and this well known to this world. Since those people do not have access they are not allowing bitcoin to stay stronger.
legendary
Activity: 3024
Merit: 2148
September 29, 2019, 02:48:08 PM
#2
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. By today you'd lose 20% of your wealth already, and the future would still be uncertain - would you recover soon or dive even deeper? Imagine if now you have an emergency and need a portion of those savings - now you have to sell at a loss, or maybe don't even have enough money due to crash.

As long as Bitcoin will remain volatile, it will only be suitable to be a small part of investor's portfolio, meanwhile you can buy serious amounts of gold and be reasonably confident that it won't crash in a single day.
jr. member
Activity: 392
Merit: 7
September 29, 2019, 01:34:52 PM
#1
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!!  
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