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

sr. member
Activity: 1358
Merit: 253
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.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
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.
I realize the gold standard is not coming back as governments are too happy with their fiat currencies, but at the same time people are feeling the consequences of that system and they are suffering because of it, so even if they do not want to the people could eventually force their hand by instead switching to a hard asset that cannot be printed and outside of their control like bitcoin, which is why governments are so worried and they are trying to do what they can to slowdown bitcoin adoption.
hero member
Activity: 812
Merit: 560
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.

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.
hero member
Activity: 3052
Merit: 685
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.
legendary
Activity: 3248
Merit: 1128
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.
sr. member
Activity: 1484
Merit: 254
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.
sr. member
Activity: 2310
Merit: 332
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.
member
Activity: 318
Merit: 10
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.

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.
full member
Activity: 785
Merit: 105
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.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
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.
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.
full member
Activity: 1303
Merit: 128
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.
hero member
Activity: 2926
Merit: 636
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,


If you come into crypto thinking that its a get rich quick scheme, then you will mostly end up investing into shitcoins that will only ruin your investment and lose everything you have. But if you prioritize bitcoin, which is proven to be the most profitable investment in the market, this will hedge against inflation. The more its value appreciates, the longer you intend to hold it, the more profits you gained. That way, despite of the high rising inflation, you will never mostly feel its effect because you have bitcoin that is giving you a good ROI.
legendary
Activity: 2492
Merit: 1869
Leading Crypto Sports Betting & Casino Platform
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.
hero member
Activity: 1498
Merit: 537
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.
sr. member
Activity: 1792
Merit: 255
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.
sr. member
Activity: 1722
Merit: 252
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.
sr. member
Activity: 1484
Merit: 254
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.
legendary
Activity: 2688
Merit: 1192
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.

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.
full member
Activity: 616
Merit: 100
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 Smiley
full member
Activity: 1050
Merit: 100
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.
among the three have their respective advantages and disadvantages, depending on which one we prefer to invest in, all three are places to fight inflation, there are also people who invest in these three assets, with the reason to be safer if bad things happen in one of the three assets. assets, so that they can support each other to provide higher returns. but indeed for now cryptocurrencies are popular, and provide many opportunities to get higher returns, because there are fewer users
hero member
Activity: 1050
Merit: 903
Not Your Keys, Not Your Bitcoin
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.
legendary
Activity: 2338
Merit: 1124
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.
hero member
Activity: 2450
Merit: 605
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.
member
Activity: 700
Merit: 14
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.
legendary
Activity: 2492
Merit: 1869
Leading Crypto Sports Betting & Casino Platform
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.
legendary
Activity: 3150
Merit: 1392
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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.
legendary
Activity: 2492
Merit: 1869
Leading Crypto Sports Betting & Casino Platform
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.
hero member
Activity: 812
Merit: 560
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.

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.

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.
hero member
Activity: 3010
Merit: 626
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.
legendary
Activity: 2338
Merit: 1124
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.
hero member
Activity: 2898
Merit: 639
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?
hero member
Activity: 2912
Merit: 556
Enterapp Pre-Sale Live - bit.ly/3UrMCWI
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.
legendary
Activity: 3248
Merit: 1128
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.
full member
Activity: 1736
Merit: 121
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.
sr. member
Activity: 1568
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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.
hero member
Activity: 1960
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Vave.com - Crypto Casino
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.
legendary
Activity: 2646
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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.
legendary
Activity: 3808
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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.
sr. member
Activity: 2366
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SOL.BIOKRIPT.COM
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.
member
Activity: 1092
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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.
legendary
Activity: 2492
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Leading Crypto Sports Betting & Casino Platform
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.
legendary
Activity: 3612
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www.Crypto.Games: Multiple coins, multiple games
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.

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.
hero member
Activity: 2912
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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.  Cheesy
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.
hero member
Activity: 1064
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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.
hero member
Activity: 2086
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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.
sr. member
Activity: 1428
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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.
legendary
Activity: 2828
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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.
legendary
Activity: 2562
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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.
hero member
Activity: 2520
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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.
full member
Activity: 2128
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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.
sr. member
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Bitcoindata.science
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
legendary
Activity: 2058
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Play Poker on Telegram
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.
hero member
Activity: 1862
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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.
hero member
Activity: 1288
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Bitcoin makes the world go 🔃
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.
legendary
Activity: 1372
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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.



full member
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SOL.BIOKRIPT.COM
What can crypto offer them?

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.

hero member
Activity: 2520
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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.
hero member
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https://www.betcoin.ag

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.

legendary
Activity: 3486
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Leading Crypto Sports Betting & Casino Platform
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.  Grin  (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
member
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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
hero member
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Leading Crypto Sports Betting & Casino Platform
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.
legendary
Activity: 1372
Merit: 2017
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,

legendary
Activity: 2058
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Play Poker on Telegram
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.
full member
Activity: 1848
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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.
legendary
Activity: 994
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Lightning network is good with small amount of BTC
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.
legendary
Activity: 2058
Merit: 1270
Play Poker on Telegram
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.
legendary
Activity: 994
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Lightning network is good with small amount of BTC
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.
hero member
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Merit: 580
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.
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