Topic: Rising inflation forces investors to look for defensive assets. - page 4. (Read 475 times)
Usually, when the inflation rate increases all over the world people will seek investment options and these options can be different for everyone depending themselves, time after time people change their minds and they try to find an investment option to keep them safe from inflation rate also they want to get even some profits over their money they invest during this time, in this case, bitcoin can be a good option because as a new asset for investing in the long term they will save themselves from the inflation rate also they can earn big amount of profits over the money they invested on it.
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,
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. I don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.
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.If you are here for long-term, you really don't need to worry the hour-by-hour movement because it will make you crazy if you will follow such movement. If you do believe that bitcoin's price will be valuable in the future, then, you can keep tabs of the market, but should not worry the roller coaster ride in the market. Also, bear in mind that bitcoin is not a safe haven of your asset, but just another option that may possibly give you good returns when the right time comes. So it means, you also need to explore other investment options. Should not look at crypto or bitcoin as the sole option for investments.
I don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.
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. 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 don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
Inflation has hit fiat currencies really hard on the back of measures employed to curb the covid pandemic many months ago, the ongoing war has made matters even worse as fiat currencies the world over continues to lose its value; but Bitcoin does not seem to have been affected by all of that, since the war started i have not noticed any serious movement in the price of Bitcoin, thus there are many reasons why i will choose it over many assets either as a hedge, investment, currency, etc. 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.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.
You are using short term for your speculation, check bitcoin price in 2010, 2013, 2016/2017, 2020/2021. You will understand how bitcoin price has been increasing, it has been a net increase and never ending yet.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.
Limited and increasing in value. Absolutely yes, one of the best option to go for as investment is bitcoin. 
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.
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