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.
Topic: Rising inflation forces investors to look for defensive assets. - page 3. (Read 475 times)
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.
It is a "defensive" method if you are looking to just protect your investment at all costs. I mean sure it could drop in the short term, but in the long term when the dollar or any fiat you may use goes down due to inflation, bitcoin goes up against it. You just need to zoom out and see it yearly or so in order to understand how awesome it is.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.
If you look at it from this month to last month (well it went up this time) you may see losses time to time, but yearly it is a good investment. 90%+ of the time when you buy bitcoin and wait a year, that means you are going to be in profit. Doesn't mean it is true for every single time, but that is usually what happens.
What I worry is investors looking at the Bitcoin price for every minute of their life once they are invested in it. That's what I did before and it took a toll of stress to me. That should not be the case when it comes to purchasing Bitcoin. There should be patience.
Now it's my wife that is actually stressing me out because of the recent high fluctuations in the market. She tells me to sell whenever the price goes up like a talking price tracking device.
Anyway, as an asset being kept for a long period of time is what will make it sweeter. The only wall I see from them buying is the expensive price which should be taken in deep consideration. They don't really need to buy 1 BTC forcefully. Satoshis will be sufficient enough and if done monthly or annually could pile up into 1 Bitcoin in the future.
Now it's my wife that is actually stressing me out because of the recent high fluctuations in the market. She tells me to sell whenever the price goes up like a talking price tracking device.
Anyway, as an asset being kept for a long period of time is what will make it sweeter. The only wall I see from them buying is the expensive price which should be taken in deep consideration. They don't really need to buy 1 BTC forcefully. Satoshis will be sufficient enough and if done monthly or annually could pile up into 1 Bitcoin in the future.
Does Bitcoin's ROI is huge? Yes
Can Bitcoin save from inflation? Maybe
Does the future will depends on past history? Nope
This mean, if you want to save your money from inflation by invest in Bitcoin, it doesn't guarantee 100% the price always increase. Not to mention, most people is panic when the market goes red and sold before the price increase. Just invest what you can afford to lose, you wouldn't regret if Bitcoin price goes dump, however you will happy if it goes opposite.
Can Bitcoin save from inflation? Maybe
Does the future will depends on past history? Nope
This mean, if you want to save your money from inflation by invest in Bitcoin, it doesn't guarantee 100% the price always increase. Not to mention, most people is panic when the market goes red and sold before the price increase. Just invest what you can afford to lose, you wouldn't regret if Bitcoin price goes dump, however you will happy if it goes opposite.
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.
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.
Inflation in my country is always high and exceeds economic growth, this makes prices continue to rise and many residents cannot buy necessities, malls are quiet, automatic sales drop, property continues to decline, this makes us always have to be creative to find alternative investments that can overcome inflation , and the best in my opinion right now are cryptocurrencies because they can be sold at any time.
Bitcoin is a speculative asset, many investors yet do not consider it as a safe haven, but if we check this, it is not totally true. Like the El Salvador that bought bitcoin at a price around $50000, or some people that bought bitcoin at all-time-high, bitcoin later decreased, but they have nothing to be worried about, only traders should have someone to be worried about, not long term investors, the price of bitcoin will still later reach all-time-high and reach six digits. It can be said that if someone want to consider bitcoin as a safe haven, he should hold it for at least 4 years or more, then bitcoin as a save haven or store of value would be realized by the holder.
Bitcoin is extremely volatile, and we have experienced sporadic and unexpected plunges in its price, is Bitcoin a risky investment? Yes, because you can't be certain it would hold its value at any point in time, it could either plunge or appreciate in price and thus that doesn't make it a safe haven asset. Your example with El Salvador and long term hodlers is prove that Bitcoin is a speculative asset, Why Because you are looking at the long term and of a true the price of Bitcoin would definitely appreciate in the long period, but isn't that how speculative investments work: You buy an asset and strongly 'guessing' that it would produce profits in the long run and you're unconcerned if it dumps in the short period. Safe haven assets either holds its value or appreciates for a pretty long time like Gold, i am afraid Bitcoin doesn't or not yet at least.Volatility gets better with mass adoption, though. As speculative as Bitcoin is, all other markets have some risk of crashing leaving some investors out cash. Long term Bitcoin probably outpaces gold or other precious metals for the sole reason that most other currencies are inflating too rapidly to warrant usage. Gold would have taken the place of these currencies, but not in a digital age.
Real estate isn't known for being a good inflation protected asset. In the united states, home markets could be considered a deflationary asset. Development of real estate hasn't matched the pace of population growth, leading living space towards being an increasingly scarce commodity. The negative force acting upon US real estate is stagnant wage growth. Yet there are many foreign buyers investing in US real estate who keep markets from collapsing. The united states allows nationals of china and other nations to buy up large masses of its land, which may further incentivize appreciation of real estate value.
Fractional real estate denominated in crypto, where fractional investors (owners) receive a portion of rental income could have potential. To be honest, its not something I've looked into. With the overall down payment and monthly payments being outside the budget of most investors, fractional real estate, which allows them to buy up affordable pieces, could be yet another strategy for acquiring inflation protected assets.
I think russian oligarchs at the moment are investing in UAE real estate for perhaps similar reasons.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
Fiat can go down because of inflation because government control the price and reduce the value of fiat themselves, bitcoin is not controlled by any government and in long term, the value will increase, it is a deflationary asset.The lack of control of bitcoin makes it an independent asset capable of return multiple times and free from inflation unlike fiat that is affected by the policies of government. Having fiat in bank as asset has now proved to be inflation prone depending on the time and the rate of inflation but no matter how bitcoin stays in the wallet, it current value is not reduced from the global value and the unit of hodling isn't affected.
Bitcoin is the best, reliable and most secured digital asset in todays world but it's very volatile for inexperienced traders because due to it's inconsistency in trends it keeps switching directions. At the moment investors who have little knowledge about how volatility works just needs to stick to hodling because a life struggle can be buried in a single trade following the high volatility
Bitcoin is a good alternative to fight inflation, this is considered more of an investment now than to a digital currency since you can tell that there are still few people who really spend their cryptocurrency. Yes, this market is too volatile but it can be more rewarding if you do things here correctly. Knowledge is very important, it should be your weapon to survive on this market, its not easy to beat inflation but you must deal with it.
Bitcoin is the best, reliable and most secured digital asset in todays world but it's very volatile for inexperienced traders because due to it's inconsistency in trends it keeps switching directions. At the moment investors who have little knowledge about how volatility works just needs to stick to hodling because a life struggle can be buried in a single trade following the high volatility
3. Volatility gives you so many opportunities to buy when the price is low
Yes it does, and that is why i strictly believe Bitcoin is more of a speculative asset than an actual store of value. Gold is a 'safe haven' asset and a store of value no doubt about that, and i think that is why many investors still prefer it as a hedge to devaluation of their funds. But even at that Bitcoins volatile and speculative nature is also great, especially when we are looking at the percentage of ROI that can possibly be accrued, but on that note you have to invest for the long term because since it is not a safe haven, it is very possible the price could really drop in the shorter period, but based on it being a speculative asset with quite a lot of potential for the long term, the price is always bound to appreciate back up somewhere along the line, and produce ROI for patient investors.
Considering Gold, there are many things that are wrong with the asset. You need a considerable amount of investment because the volatility is not really that high and it can definately be a good store of value but I do not think that it would be better than bitcoins tho since right now there are many things that are better with bitcoins like :
1. The government cannot simply take over the assets like cryptocurrencies, like bitcoins
2. The profit level is actually very good as compared to gold
3. Volatility gives you so many opportunities to buy when the price is low
Farming cannot provide you with long term profits definately.
1. The government cannot simply take over the assets like cryptocurrencies, like bitcoins
2. The profit level is actually very good as compared to gold
3. Volatility gives you so many opportunities to buy when the price is low
Farming cannot provide you with long term profits definately.
It will still depend on the type and experience investors have made even before the inflation. Some were consistent in their investments knowing that somehow someday their investments will still gain profit. While some are too aggressive to take more new investments thinking that it can make them richer. Even there are inflations some will just keep or stick in their plan while others will shift in crypto depending on their ideas and capabilities of volatility.
Not really the best of course, we have traditional assets, you know mate, if things get out of hand like we are now facing such treats to humanity, we should be considering of how to survive. We won't be able to use bitcoins when there are no electricity and internet. So a traditional asset is better choice, example farm lands. We can't eat Bitcoins can we? But fruits and vegetables is edible, so in times when inflation really hit us hard, it is better to farm.
Bitcoin is really the best. Traditional assets are good, better than fiat, of course, but not as good as Bitcoin.
I know something about farm land, and I would say more than you do. I don't know if you are aware that having farm lands without electricity and internet (and I guess without cars and gasoline either), would make you starve.
The amount of land you need to produce enough food for you for a year and in a varied way is enormous, and you could not work it all. Even less without machines.
But I wasn't talking about a Mad Max style situation. Bitcoin is the best store of value today, and if tomorrow we find ourselves in a situation where there is no electricity, no internet, and no machines that run on gasoline, Bitcoin will be the least of your worries. A few guns and a lot of bullets will be much more useful.
What can crypto offer them?
Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.
Better than gold in terms of transportation ease. It is hard to move 1 Billion USD worth of gold overseas, but in BTC it is so easy and fast too. This has offer them the portability of a million dollar asset.
But on the other hand we have Bitcoin, which is the best asset against inflation
Not really the best of course, we have traditional assets, you know mate, if things get out of hand like we are now facing such treats to humanity, we should be considering of how to survive. We won't be able to use bitcoins when there are no electricity and internet. So a traditional asset is better choice, example farm lands. We can't eat Bitcoins can we? But fruits and vegetables is edible, so in times when inflation really hit us hard, it is better to farm.
But it's almost a trial and error when you do invest in altcoins so you best read and pick a better prospect.
The challenge of altcoins market is that many shit coins have flooded the market thereby deceiving the interest of investors who majority of them are looking at profit at the instance of investment and they run into cheap and shit coins because of profit. There are altcoins that will guarantee return but because of their price, investors prefer to go for cheap coins and they get burnt at the end of the day.
Let's just say we who learn about crypto after 10 years of its existence are still early investors of the industry I think you still can get a lot of profit if you invest today in BTC. There are lots of altcoins too that can greatly make an investor rich and avoid getting affected thoroughly by inflation today.
Some of them may not survive after the bear market but you still can make money out of it if you know which one is hyped well by the shilling army. Not sure about the term Defensive assets. But it's almost a trial and error when you do invest in altcoins so you best read and pick a better prospect.
The nice thing with Bitcoin is the high volatility.... So, if you bought low and there are a huge recovery of say 80% and you sold your coins after the recovery, then you will cover the inflation influence for a few years. 
(and still get some interest on the money, if you re-invest it)
I made 800%+ profit on some of the coins that I sold when the price went above $60 000, so I will be covered for inflation for a couple of years. People should not be discouraged by the large drop in the price.... they should grab the opportunity to buy more coins and then just wait for the price to recover to beat inflation for years!
https://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate
(and still get some interest on the money, if you re-invest it) I made 800%+ profit on some of the coins that I sold when the price went above $60 000, so I will be covered for inflation for a couple of years. People should not be discouraged by the large drop in the price.... they should grab the opportunity to buy more coins and then just wait for the price to recover to beat inflation for years!
https://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate
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.
Inflation is indeed haunting every year, and is getting more and more so that fiat seems to be losing its value. but with the existence of cryptocurrencies, there are indeed many investors who shift their investment to cryptocurrencies, especially for countries that are at war, property assets do not seem to be the best choice for storing assets. although cryptocurrencies are in decline, these assets are not affected by events like wars 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.
Jump to: