Rising inflation forces investors to look for defensive assets. - page 2.

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Quote from: barbara44 on April 14, 2022, 09:09:19 AM

Investors are already investing just before a massive inflation came, we should not worry about them but worry on those regular individuals that did not know how to invest because they are the ones that can get affected the most by inflations but there is no need to force them, just to talk to them calmly about this issue.

If they will agree and invest then that's good for them but if not then that's already their problem. They choose to live in a much harder way but they are already used to this. Cryptos price goes down but this is not caused by the inflation, crypto is rather the inflation saviour. The decline in the crypto price are normal.

They didn't choose that life! I was having a conversation with my Dad and cycle of his friends why they didn't invest in safe assets when others where investing and putting money into Gold and some stocks, the reply I got was they weren't aware as they were caught up by idea of going to school, graduate with good results and find a good job that will sort out their bills, they didn't realize that they have been working while there pay check was becoming worthless everyday.
Inflation has been there since the beginning of money, the commercial banking system and central banks knew ths eating down economy but they will rather continue to hike interest rate and print more nonsense paper to stabilize the failed system they created. The circle continues, print, print and mint.
Cryptocurrency may be volatile but is the volatility that important if your assets is been preserved overtime, get a portion of BTC or be prepared for inflation and stop ranting.

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Quote from: 777Jolami on April 13, 2022, 11:16:57 AM

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.

barbara44

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Investors are already investing just before a massive inflation came, we should not worry about them but worry on those regular individuals that did not know how to invest because they are the ones that can get affected the most by inflations but there is no need to force them, just to talk to them calmly about this issue.

If they will agree and invest then that's good for them but if not then that's already their problem. They choose to live in a much harder way but they are already used to this. Cryptos price goes down but this is not caused by the inflation, crypto is rather the inflation saviour. The decline in the crypto price are normal.

777Jolami

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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.

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Quote from: kryptqnick on April 08, 2022, 01:31:58 PM

Op is saying assets are going down due to rising inflation, but assets, from what I've read, tend to actually rise along with the inflation, normally. But the op is also writing that cryptos are going down due to inflation, if I understood correctly, which doesn't make any sense. Bitcoin and many other cryptos aren't susceptible to inflation and aren't dependent on what goes on with fiat. 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.

What happens is that when a system is in full inflation, things with respect to the local currency always increase, that is why some countries with hyperinflation resort to what they call a kind of "corralito", the banks try to control the withdrawal of fiat so liquidity doesn't leak out, however when you have some other ways to compare the local currency like the euro, the dollar, the local currency is usually seen as something very volatile and weak, that's why with the local currency prices rise, but as for the world economy increases to maintain the "standard" value. Cryptocurrencies are clearly above this economy, especially BTC because it is deflationary in nature and this is very inflation-protective, at least for particular economies.

I have experience of this because I live in a country with a totally uncontrolled economy, it no longer obeys traditional economic laws, in fact in a possible world crash the local currency of the country where I am would rise, these things are for me like the enigmas that they cannot be solved by traditional economists.

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Op is saying assets are going down due to rising inflation, but assets, from what I've read, tend to actually rise along with the inflation, normally. But the op is also writing that cryptos are going down due to inflation, if I understood correctly, which doesn't make any sense. Bitcoin and many other cryptos aren't susceptible to inflation and aren't dependent on what goes on with fiat. 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.

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Quote from: DanWalker on April 02, 2022, 10:12:40 AM

Quote from: 24Kt on April 01, 2022, 07:09:43 PM

Quote from: LUCKMCFLY on April 01, 2022, 06:46:52 PM

When talking about defensive assets, everyone thinks of Gold as their first option, Real Estate investment as their second option and some people with a very low percentage think of BTC, despite the fact that BTC has a much faster growth than gold itself , but it has an impediment that has been highlighted by the big news worldwide, as well as by some economists and, of course, by bankers and some governments, when they say that it is a very high-risk asset and that they do not recommend it.

Unfortunately many people still faithfully believe in the news and manipulation systems where they do not think for themselves that an asset can be bought at $44k right now and then reach $100k more, that is very difficult to see, however many people already is waking up and they are looking at BTC as a safe haven, this is to be admired.

A lot of population are still sticking to the traditional assets because they want to see their assets. Whereas, with bitcoin, most of them are hesitant because it is new, and the truth is most of them don't know how to transact with crypto. So they prefer to be on the safer side, which are the tangible assets. We can't blame them because people are used to these assets. But for those who discovered crypto, they feel they are lucky to be in this market. Patience is needed here and understanding of the market, in order to gain from this market. So yes, this market is not for all.

Because it is a new market and to be honest, there are too many scams around crypto. Many people haven't entered the market when they hear about cryptocurrencies, the first thing that comes to mind is bitcoin. Because this causes misunderstandings that make them not really fully trust bitcoin.

Along with the short-term volatility of bitcoin is also what makes them fear their wealth will evaporate when investing in bitcoin, only those who have been in the market long enough can feel the difference between bitcoin and its true value.

Unlike the Stock Market, it is known that to invest there you need to do a very serious study to decide where to put the money and over time many benefits will be produced, but this is very different because in the crypto market the safe asset or currency is Bitcoin. , and that very few people know, some do not buy because sometimes they see that the price drops to $40k, $30k, it can even drop to $20k, but what they do not know is that their last ATH is close to $70k it can even go up to $100k or more, and this alone is an extreme cause of very juicy profit, this is what very few know and are afraid to invest.

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Quote from: Franctoshi on March 27, 2022, 03:40:08 PM

Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.

Except for bitcoin which still maintain it value and worth.

Quote from: Franctoshi on March 27, 2022, 03:40:08 PM

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.

Altcoin are mostly unreliable except for few ones, that is why it is very important for you to clarify your stance while recommending altcoin because many may result into failed project and you will apparently appear to be a liar for recommending them with such.

Quote from: Franctoshi on March 27, 2022, 03:40:08 PM

Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.

Bitcoin has proven at many times more higher than gold in profitability statistical data base on research,
i think i read something about the annual and monthly profitability of bitcoin on https://bitcointalksearch.org/topic/m.59451937 one of the threads published by @Ratimov on the forum. while gold remains a physical asset, bitcoin has proven on several occasions as the only decentralized digital assets more profitable than gold as of recent.

sunsilk

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Cryptocurrencies are volatile, when you say that they're also into inflation. Well, that could be the fluctuation that you're considering as the inflation.

It's a swinging market and there could be really the worse days and there are the best days as well. The matter for these investors that want to hedge and save their assets, they don't have to jump off quickly into buying bitcoin.

They need to understand it first and how it works so that they won't be surprised if it ever fluctuates.

RealMalatesta

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Quote from: darewaller on April 03, 2022, 02:36:01 PM

It all depends on what the investors are looking for. Are they looking for an investment that would benefit them on a long term or short term? If they are looking for an investment that is going to benefit them on a long term, then cryptocurrency is what they should be investing in right now. Which other investment do you think is currently better than investing money in Bitcoin?

You should show them the price charts of Bitcoin, and let them see for themselves how Bitcoin has been able to keep defending itself and moving upwards despite everything that has happened. Bitcoin has moved from a price that is below $1 to over $60,000 in a decade. So who says that it wouldn’t move further in the years to come?

Unfortunately they do not look at crypto as a long term deal, there are way too many people who are invested that thinks about it like a short term good thing. I am not really sure if it could be done but they just want to get rich quick. Weird thing is, that is not impossible neither, there are a lot of people who invested into weird things like shiba, and turned couple thousand to millions.

It won't happen again right now, but it is definitely the thing that causes the biggest trouble for the people's perception of crypto. Which is why to tell people to consider crypto in a more long term thing is a bit of a bigger deal than usual.

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It all depends on what the investors are looking for. Are they looking for an investment that would benefit them on a long term or short term? If they are looking for an investment that is going to benefit them on a long term, then cryptocurrency is what they should be investing in right now. Which other investment do you think is currently better than investing money in Bitcoin?

You should show them the price charts of Bitcoin, and let them see for themselves how Bitcoin has been able to keep defending itself and moving upwards despite everything that has happened. Bitcoin has moved from a price that is below $1 to over $60,000 in a decade. So who says that it wouldn’t move further in the years to come?

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If investors can accept bitcoin price fluctuations, they can use bitcoin as a store of their funds, but not all investors can accept it. Investors want to make sure their funds are safe, but they also know that no investment can be 100% safe, even gold, but gold is still the main choice for investors, especially traditional investors, to keep their money's value from falling far.

But for, those who can accept the fact that the price of bitcoin will always go up and down every day will try to use bitcoin as a hedge of their funds. Those who have used bitcoin in recent years see that bitcoin can potentially increase the value of their money in the future, especially if they hold it for several years. So, in this case, if they want, they have two hedges of their money, namely in the form of gold and bitcoin, but the return on bitcoin will be much greater than gold because of the volatility factor.

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Quote from: wozzek23 on April 02, 2022, 12:50:53 PM

To consider that there could be a war where you buy a house, maybe you are not in a safe place? I mean I can buy a house where I live right now with the 100% trust that there wouldn't be a war here, maybe some terrorist attack? But that is not a war and you could get insurance for that I suppose, or at least rebuild.

Aside from that we really can't do much, that is the most defensive one, if you buy gold then they can steal your gold too, which is why the idea of defensive investment is not just how safe it is to keep it, but more like how defensive it is when there are economical problems. Against stuff like pandemic, or war in another nation like right now, or economical crisis like stock market crash. Gold, crypto, real estate these are all defensive in that regard.

Whether you choose to go for gold, real estate, and Bitcoin, they are all really good investment. Although what the other comment was talking about is in a situation where there happens to be war or anything like that, that real estate is more going to be doomed.

And you yourself have also pointed out that gold can be stolen, although anyone who is investing in gold, I wouldn’t advise them to be keeping it themselves, it is best to invest through reliable companies that will store your gold in a safe place for you, and you can be able to just trade it online. So far Bitcoin seems to be a really good option since you don’t really have to stress much about all that, although you will have to be careful with your private keys. So they all have their pros and cons.

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Quote from: adaseb on April 01, 2022, 11:30:48 PM

Crypto on paper sure looks like a great hedge against inflation but a lot of that matters where you buy in. I know many people personally who pretty much bought the top at $66-69K because they were hearing of 6-7% inflation and they wanted to hedge and look what happened.

Inflation maybe will peak at 10% but from their investment they lost 50% at one point. And some of them already took a loss in the low $30Ks areas.

So it’s great as long as Bitcoin doesn’t drop lower. However nobody knows where the bottom is. Could be $30K or $20K or $15K.

This reason can be good enough to say bitcoin is not a hedge for inflation. If you want to hedge your funds in btc and running away from inflation on fiat and the price drops even heavily, it has defeat the aim of it. Bitcoin is volatile that can move any direction whether bull or bear and unregulated, so it is not the best for hedging.

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Quote from: jaberwock on April 02, 2022, 08:23:26 AM

Stable coins are backed by fiats so they are not different from the local money that you use but they can still be affected by inflations. Someone can call crypto as a safe heaven, maybe what they mean is it can save you from the inflation and I think it has to do with the supply of cryptos which are limited.

I don't think real estate is a defensive investment. What if there is a war? Can a real estate defend itself from the projectiles and falling debris? It can be easily damaged but not cryptocurrencies because they are digital. Cryptos values can go down but that's not permanent. They can recover and the increase will be twice better than before.

To consider that there could be a war where you buy a house, maybe you are not in a safe place? I mean I can buy a house where I live right now with the 100% trust that there wouldn't be a war here, maybe some terrorist attack? But that is not a war and you could get insurance for that I suppose, or at least rebuild.

Aside from that we really can't do much, that is the most defensive one, if you buy gold then they can steal your gold too, which is why the idea of defensive investment is not just how safe it is to keep it, but more like how defensive it is when there are economical problems. Against stuff like pandemic, or war in another nation like right now, or economical crisis like stock market crash. Gold, crypto, real estate these are all defensive in that regard.

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Quote from: 24Kt on April 01, 2022, 07:09:43 PM

Quote from: LUCKMCFLY on April 01, 2022, 06:46:52 PM

When talking about defensive assets, everyone thinks of Gold as their first option, Real Estate investment as their second option and some people with a very low percentage think of BTC, despite the fact that BTC has a much faster growth than gold itself , but it has an impediment that has been highlighted by the big news worldwide, as well as by some economists and, of course, by bankers and some governments, when they say that it is a very high-risk asset and that they do not recommend it.

Unfortunately many people still faithfully believe in the news and manipulation systems where they do not think for themselves that an asset can be bought at $44k right now and then reach $100k more, that is very difficult to see, however many people already is waking up and they are looking at BTC as a safe haven, this is to be admired.

A lot of population are still sticking to the traditional assets because they want to see their assets. Whereas, with bitcoin, most of them are hesitant because it is new, and the truth is most of them don't know how to transact with crypto. So they prefer to be on the safer side, which are the tangible assets. We can't blame them because people are used to these assets. But for those who discovered crypto, they feel they are lucky to be in this market. Patience is needed here and understanding of the market, in order to gain from this market. So yes, this market is not for all.

Because it is a new market and to be honest, there are too many scams around crypto. Many people haven't entered the market when they hear about cryptocurrencies, the first thing that comes to mind is bitcoin. Because this causes misunderstandings that make them not really fully trust bitcoin.

Along with the short-term volatility of bitcoin is also what makes them fear their wealth will evaporate when investing in bitcoin, only those who have been in the market long enough can feel the difference between bitcoin and its true value.

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Quote from: so98nn on April 01, 2022, 07:41:38 AM

I wouldn’t call crypto currency as defensive investment at all. The crypto space is full of surprises and any small to big event around the world can shake the baseline of crypto coins. If you have said they can put money into stable coins and wait for the market to get optimum level of stability then that’s another story. However, in that case also crypto is not defensive type it’s more or less temporary escape zone.

Defensive investment would be something like Real Estate. Idk, but most of the time real estate is only growing al the time whether market is crashing or there is war out there.

Stable coins are backed by fiats so they are not different from the local money that you use but they can still be affected by inflations. Someone can call crypto as a safe heaven, maybe what they mean is it can save you from the inflation and I think it has to do with the supply of cryptos which are limited.

I don't think real estate is a defensive investment. What if there is a war? Can a real estate defend itself from the projectiles and falling debris? It can be easily damaged but not cryptocurrencies because they are digital. Cryptos values can go down but that's not permanent. They can recover and the increase will be twice better than before.

adaseb

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Crypto on paper sure looks like a great hedge against inflation but a lot of that matters where you buy in. I know many people personally who pretty much bought the top at $66-69K because they were hearing of 6-7% inflation and they wanted to hedge and look what happened.

Inflation maybe will peak at 10% but from their investment they lost 50% at one point. And some of them already took a loss in the low $30Ks areas.

So it’s great as long as Bitcoin doesn’t drop lower. However nobody knows where the bottom is. Could be $30K or $20K or $15K.

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Quote from: 24Kt on April 01, 2022, 07:09:43 PM

Quote from: LUCKMCFLY on April 01, 2022, 06:46:52 PM

When talking about defensive assets, everyone thinks of Gold as their first option, Real Estate investment as their second option and some people with a very low percentage think of BTC, despite the fact that BTC has a much faster growth than gold itself , but it has an impediment that has been highlighted by the big news worldwide, as well as by some economists and, of course, by bankers and some governments, when they say that it is a very high-risk asset and that they do not recommend it.

Unfortunately many people still faithfully believe in the news and manipulation systems where they do not think for themselves that an asset can be bought at $44k right now and then reach $100k more, that is very difficult to see, however many people already is waking up and they are looking at BTC as a safe haven, this is to be admired.

A lot of population are still sticking to the traditional assets because they want to see their assets. Whereas, with bitcoin, most of them are hesitant because it is new, and the truth is most of them don't know how to transact with crypto. So they prefer to be on the safer side, which are the tangible assets. We can't blame them because people are used to these assets. But for those who discovered crypto, they feel they are lucky to be in this market. Patience is needed here and understanding of the market, in order to gain from this market. So yes, this market is not for all.

I think everyone who invests in any type of investment, they know what bitcoin is and the reason not to choose it is because of its high fluctuation and volatility.
and it makes them hesitate for fear of losing, but if it's done long term, I think it's okay and maybe the real reason is because they don't want to learn it and understand it well and are still comfortable with the traditional.
and over time as bitcoin continues to grow and become more popular and many people benefit including inflation, they will learn about it and will consider it and maybe switch. Bitcoin will solve any problem if you treat it right.

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Quote from: LUCKMCFLY on April 01, 2022, 06:46:52 PM

When talking about defensive assets, everyone thinks of Gold as their first option, Real Estate investment as their second option and some people with a very low percentage think of BTC, despite the fact that BTC has a much faster growth than gold itself , but it has an impediment that has been highlighted by the big news worldwide, as well as by some economists and, of course, by bankers and some governments, when they say that it is a very high-risk asset and that they do not recommend it.

Unfortunately many people still faithfully believe in the news and manipulation systems where they do not think for themselves that an asset can be bought at $44k right now and then reach $100k more, that is very difficult to see, however many people already is waking up and they are looking at BTC as a safe haven, this is to be admired.

A lot of population are still sticking to the traditional assets because they want to see their assets. Whereas, with bitcoin, most of them are hesitant because it is new, and the truth is most of them don't know how to transact with crypto. So they prefer to be on the safer side, which are the tangible assets. We can't blame them because people are used to these assets. But for those who discovered crypto, they feel they are lucky to be in this market. Patience is needed here and understanding of the market, in order to gain from this market. So yes, this market is not for all.

Topic: Rising inflation forces investors to look for defensive assets. - page 2. (Read 464 times)