Topic: Rising inflation forces investors to look for defensive assets. (Read 475 times)
Inflation makes a serious problem for anyone, investors certainly understand that the small level of profit from investment commodities will be avoided for the long term, and the best thing now is to try investment in crypto which has proven to be very profitable even when many investments die since Covid emerged.
Inflation may be inevitable but it could be under control if hard assets were used directly to buy products and services, examples of this are bitcoin and gold, or this could be done by backing paper money with those solid assets, the issue is that if the latter option is adopted the temptation for the government to eventually abandon that system is too great as the benefits they get by doing so are enormous, but the consequences everyone else has to pay come in the form of high inflation and eventually hyperinflation follows as well.
We have been long away from the gold standard and I do not think that we could ever even consider going back there with how the finances are these days. I mean you are not wrong, we could limit inflation and even poverty to a certain degree if money had value because it gives people the right to save money and then do something with it, compared to today where you save money but the pace you save it is slower than the value it loses to inflation.I could save 1k a year today, and in 50 years I would have 50k, but in 50 years, 50k may not buy what 1k buys today, or at least it wouldn't be 50k of today for sure, hence if gold standard was a thing, we would have been much closer.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too.
Why not make recommendation? this is cryptocurrency and bitcoin for that matter is worth investing even at the time, remember that bitcoin works by price volatility and no matter how inflation looms the economy, it's effect can be withstand by bitcoin before its an incomparable asset that stand out of all other assets which can be affected by inflation.
Cryptocurrency has no collateral.
I like this point you just mentioned, no KYC requirement on bitcoin investment assets and maximum security and privacy well considered, one can decide making a decision on his crypto investment any time without having to consider any drawback of terms and conditions required in other form of investments.
What can crypto offer them?
As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
I know bitcoin has been very profitable in the past years and even at the present, but as long as its very volatile, i don't see it as a safe haven. I guess there's no safe haven when it comes to majority of investments, as there's no guaranteed profits in the end. However, if you compare investing in fiat than crypto, well there's higher chances that you will gain more profits in crypto that will hinder you from the endless effects of high inflation. But always manage the risk so you won't experience losses more frequent. As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
Inflation may be inevitable but it could be under control if hard assets were used directly to buy products and services, examples of this are bitcoin and gold, or this could be done by backing paper money with those solid assets, the issue is that if the latter option is adopted the temptation for the government to eventually abandon that system is too great as the benefits they get by doing so are enormous, but the consequences everyone else has to pay come in the form of high inflation and eventually hyperinflation follows as well.
We have been long away from the gold standard and I do not think that we could ever even consider going back there with how the finances are these days. I mean you are not wrong, we could limit inflation and even poverty to a certain degree if money had value because it gives people the right to save money and then do something with it, compared to today where you save money but the pace you save it is slower than the value it loses to inflation.I could save 1k a year today, and in 50 years I would have 50k, but in 50 years, 50k may not buy what 1k buys today, or at least it wouldn't be 50k of today for sure, hence if gold standard was a thing, we would have been much closer.
Never feel safe from inflation, because it is certain that it will continue to occur and repeat, factors that usually affect inflation are the cost of products that continue to increase and the more difficult food ingredients so that it is more expensive and becomes the initial trigger of inflation.
The problem of inflation is probably more clearly felt recently when many items have increased in price and many of us out there still do not have a stable income to adapt well to life. It may be a bit harsh,
Lack of access to finance is why people notice and complain of inflation. If people has access they won't complain of the rate of inflation. As usual it is the poor who feel this hardship more because they lack purchasing power.
but I think the purification of each economic period makes the gap between rich and poor even more obvious.
Or I think it is the inflation growth that is continuously widening the gap between the rich and poor. The rich still manage to get access to good life even on high cost but the poor doesn't because of lack of funds, you can see the gap gets wider for this reason of inflation. The percentage rate of increase in the last two years from covid-19 (2020) is higher than before now, that is the big problem.
What can crypto offer them?
As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
Cryptocurrency has no collateral. If one day people stop using cryptocurrency or lose confidence in it, it will turn into an empty place. In some countries there is no specific status for cryptocurrencies. We need a unified approach to this. What is bitcoin today? Payment instrument or asset? The price of a cryptocurrency can skyrocket and fall down. Who can guarantee that my money can be saved? I don't think there are any guarantees.
The economic crisis is not a problem that has just begun, I have heard it since I was a child, and whether in the past, present, or future, I think it will repeat. People can escape financial control and freely do what they love, but on the contrary, we still have to accept the fact that the gap between the rich and poor is difficult and it is difficult to bring them together. The problem of inflation is probably more clearly felt recently when many items have increased in price and many of us out there still do not have a stable income to adapt well to life. It may be a bit harsh, but I think the purification of each economic period makes the gap between rich and poor even more obvious.
When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.
That only means high inflation is inevitable, we might delay the result of it but eventually we are going to deal with those expensive things. This is why we should be ready for that and look for the best asset that pays the best interest, for now Gold and Bitcoin seems the best option, that’s why we saw huge growth of demand with regards to cryptocurrency.When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.
That only means high inflation is inevitable, we might delay the result of it but eventually we are going to deal with those expensive things. This is why we should be ready for that and look for the best asset that pays the best interest, for now Gold and Bitcoin seems the best option, that’s why we saw huge growth of demand with regards to cryptocurrency. What can crypto offer them?
Well, what "crypto" can offer them is a lot of shitcoins that are pump and dump schemes and if they are lucky to get one right, as they will make money, it will compensate them for the inflation increase.
But on the other hand we have Bitcoin, which is the best asset against inflation, safer, and that surely will not give such spectacular returns in percentage terms as it did the first years, but it has some intrinsic characteristics, especially the maximum limit to its production and decentralization, which make it better than the 1900 shitcoins out there,
I believe that the inflation trend will continue to occur, this is because many countries do not have the proper controls and measures to regulate the money supply, in my country inflation is always higher than wage increases, so I have to keep looking for sources of income, and I think crypto is the best alternative to invest because of the huge profit opportunity.
In every country with high inflation, it forces people to look for jobs to be able to guarantee a good living, but this is a way out that many or most see, also the crypto options as you say are excellent, there are job measures that demand much more, when you are lucky enough to get a job that is paid from another country doing what you know, what was prepared is much more rewarding, the bad influences when you have to do a lot, have 2 or 3 jobs and you don't scope for the basics.
CRYPTO and BTC do help in a great way to get ahead, but the best thing despite everything is investment, investment in BTC is just safer, but you have to know how to wait, and that's the bad thing, many times there is no patience nor the stomach to wait, but that is the secret, and work to stay without touching the investment, something very difficult to achieve.
Also, given that Bitcoin tends to rise in value over time, some invest in it specifically to avoid inflation. What we see now it a rather minor decrease of the prices, which occurred after an upward wave. So it's just a correction, and there's no need to look for a deeper meaning here, IMO.
Actually many people still see it as a pump dump scheme which is also partially true. This market is still immature and largely controlled by a few elite investors. Whales are using the same patterns to pump and dump the market over a loop of time. In fact, it is also a reason behind the attraction of bitcoin. It gives people a very short time to multiply their assets.
This correction is not normal but predictable. You will not see this in other markets and every investor is not ready to take the stress of a bear market in crypto.
When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.
The strongest country in the world economy, namely the USA, is currently experiencing inflation, but I believe that inflation can occur in any country, of course the highest inflation is developing countries and countries that are at war, in my country inflation usually occurs between 8% so we have to be wary of investing thereby reducing the impact of inflation.
I believe that the inflation trend will continue to occur, this is because many countries do not have the proper controls and measures to regulate the money supply, in my country inflation is always higher than wage increases, so I have to keep looking for sources of income, and I think crypto is the best alternative to invest because of the huge profit opportunity.
What can crypto offer them?
As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.
Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
It feels like we're currently floating along in the region between bliss after coming out of covid - where many people were able to make savings and a quick recovery after the war in Ukraine started, but it still feels like the biggest war in Europe for over 60 years has barely had any effect. We're back at pre-pandemic levels after a sharp dip back at the end of February, it feels a bit surreal but with inflation and a whole bunch of other factors, the stock market should be heading down rather than up. There is still a huge bubble of excess money in stocks and property that is still inflating, but that might start to change in the coming months for Europe and the USA.
I do not agree with you. The huge volatility of bitcoin will be worse than inflation, the slightest negative news is very strongly reflected in its price. If you know how to work with its volatility, then you can not lose your money on inflation. I tried to make money on bitcoin or keep my funds from inflation but sold everything on the bottoms like a hamster 
The higher the inflation rate, the faster cash depreciates, and investors seek defensive assets that are less susceptible to inflation. gold, real estate or cryptocurrencies are always interested by investors, investors always want to find a safe investment with high interest rates, I am more interested in trusting cryptocurrencies because Bitcoin is The coin is resistant to inflation, due to the limited supply of bitcoins and the ever-increasing demand.
The difference between gold, real estate and crypto is the fact that crypto could be more volatile than all of them and it is cheaper to get in. I am sure that you could buy a very small amount of gold if you want to invest into gold but you have to physically go and get it and store it in a safe place, which is all work that is not needed in the crypto world, buy some and store it digitally in a safe place all takes 1 minute.Real estate costs a lot so it is always bad. This means it leaves us with crypto and the good ones at that, with something like bitcoin you neither need money like real estate amount, nor you would have to wait as long as you would with a gold.
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