Inflation and Deflation of Price and Money Supply

[EarnOnVictor]

To stay safe from this inflation we need to invest our money in right things like Gold ETF, Share market etc. Investment doesn't only save you from losing the real value of money of its purchasing power, at the same time its's also help economy to grow faster and stronger.

I personally prefer an approach of adjusting my personal financial preferences and needs, for example saving some of our wealth in physical property and this was also done by people before us (our parents before) and this can also be considered as one of the smart steps in mitigating this incident. The bottom line is that properties often increase in value over time.

Investing in the right assets is the best way to go, and if one will not do that, a viable alternative is to invest in the shares or investment packages that will hand you nothing less than 20% p.a. This is now common in my country, so it is doable. Better still, one may vary the investment in the form of diversification, and as a fact, this is the best approach I've known in the investment world.

The purchasing power of the national currency of most countries is always devalued due to many factors, and instead of shifting blame, we should rather plan for our future. If my country is to be used as a case study here, you will cry for the citizens who have been saving their money their entire lives of service (35 years). By now, if I do not exaggerate, the money would have devalued more than 550 times the initial value of when they started the savings.

This is absurd and painful, all your life work will be as if you did nothing, so instead of keeping it in the bank, let it work for you or at least convert it to some properties that will not devalue over time.

[boumalo]

Businesses, hard assets, comodities and real estate protect against inflation but have a high risk of regulaltion and low liquidity, you can't move the asset easily from a jurisdiction to an other.


Gold and Bitcoin are good vehicule to keep liquid value if the official currencies become restrict, both the digital and the cash form of it.

[zhen1810]

This is absurd and painful, all your life work will be as if you did nothing,  so instead of keeping it in the bank.

That's exactly what it is. It feels the same

[Baki202]

This is absurd and painful, all your life work will be as if you did nothing,  so instead of keeping it in the bank.

That's exactly what it is. It feels the same

Hyper inflation is everywhere and the people that cause this is the government and it is actually true, and people are getting tired of the whole rubbish, because currently in some Africa countries petrol have become very expensive and it is actually impacting the price of everything.  And money have lost its value and even keeping it inside the bank, because their won't be interest, so it is better to invest the money than keep it, so that when ever  the money is increasing you are already finding a way to beat inflation, having 100k now is as if you don't have money hear because one our currency have lost its value and that situation have gotten everything worst, so think on a better way to use your money to reduce inflation and devaluation of our currency, make use of it wisely, so you don't get affected.

[Yucky]

Hyper inflation is everywhere and the people that cause this is the government and it is actually true, and people are getting tired of the whole rubbish, because currently in some Africa countries petrol have become very expensive and it is actually impacting the price of everything.  And money have lost its value and even keeping it inside the bank, because their won't be interest, so it is better to invest the money than keep it, so that when ever  the money is increasing you are already finding a way to beat inflation, having 100k now is as if you don't have money hear because one our currency have lost its value and that situation have gotten everything worst, so think on a better way to use your money to reduce inflation and devaluation of our currency, make use of it wisely, so you don't get affected.

When you keep your money inside a bank, the bank people even help you to  reduce it. You wake up and see debit alerts for card maintenance or something like stamp duty charges - just weird reasons to cut your money. Recently, some banks even have issues that prevent you from accessing your money, yet it's still deduct for certain maintenance or fixes.

Indeed, investment is the way forward, no matter how little. Although some investments don't yield much, especially if you're a starter using online fintech saving apps like Piggvest, it may not be that rewarding. Plus, some people are just scared of anything related to online savings.

Investment is a good option; look up things you can invest in, whether it's Bitcoin or stocks using the Rise app or something to increase the value of your money. Saving it away is not helpful now. You plan to use it in the future, but by the time you get to that time, you can't even afford half of the things you planned to use it for because inflation is increasing every day. The price of goods this week is higher next week.

So that money you kept last week won't be enough to buy it again, and it's really crazy and painful.  Dropping investment suggestions that you use here can help others learn. What do you use for investing?

[Infek]

Hyper inflation is everywhere and the people that cause this is the government and it is actually true, and people are getting tired of the whole rubbish, because currently in some Africa countries petrol have become very expensive and it is actually impacting the price of everything.  And money have lost its value and even keeping it inside the bank, because their won't be interest, so it is better to invest the money than keep it, so that when ever  the money is increasing you are already finding a way to beat inflation, having 100k now is as if you don't have money hear because one our currency have lost its value and that situation have gotten everything worst, so think on a better way to use your money to reduce inflation and devaluation of our currency, make use of it wisely, so you don't get affected.

When you keep your money inside a bank, the bank people even help you to  reduce it. You wake up and see debit alerts for card maintenance or something like stamp duty charges - just weird reasons to cut your money. Recently, some banks even have issues that prevent you from accessing your money, yet it's still deduct for certain maintenance or fixes.

Indeed, investment is the way forward, no matter how little. Although some investments don't yield much, especially if you're a starter using online fintech saving apps like Piggvest, it may not be that rewarding. Plus, some people are just scared of anything related to online savings.

Investment is a good option; look up things you can invest in, whether it's Bitcoin or stocks using the Rise app or something to increase the value of your money. Saving it away is not helpful now. You plan to use it in the future, but by the time you get to that time, you can't even afford half of the things you planned to use it for because inflation is increasing every day. The price of goods this week is higher next week.

So that money you kept last week won't be enough to buy it again, and it's really crazy and painful.  Dropping investment suggestions that you use here can help others learn. What do you use for investing?

I will add my opinion, if we are talking about online investing, then many methods that the Internet offers, they are either with a very small percentage of income, but very high trust. At the same time, if we are talking about high incomes, online, then they already come with a high level of risk of losing money. An interesting example: when I offered investment options online, my friend said, why should I invest money there, if I can invest money in an offline business and turn them over and get up to 50% of the investment amount in a couple of months. Therefore, when they talk about investing now, I understand it more as freezing funds for a long time, with a minimum-average income.

[N.O]

Hyper inflation is everywhere and the people that cause this is the government and it is actually true, and people are getting tired of the whole rubbish, because currently in some Africa countries petrol have become very expensive and it is actually impacting the price of everything.  And money have lost its value and even keeping it inside the bank, because their won't be interest, so it is better to invest the money than keep it, so that when ever  the money is increasing you are already finding a way to beat inflation, having 100k now is as if you don't have money hear because one our currency have lost its value and that situation have gotten everything worst, so think on a better way to use your money to reduce inflation and devaluation of our currency, make use of it wisely, so you don't get affected.

When you keep your money inside a bank, the bank people even help you to  reduce it. You wake up and see debit alerts for card maintenance or something like stamp duty charges - just weird reasons to cut your money. Recently, some banks even have issues that prevent you from accessing your money, yet it's still deduct for certain maintenance or fixes.

Indeed, investment is the way forward, no matter how little. Although some investments don't yield much, especially if you're a starter using online fintech saving apps like Piggvest, it may not be that rewarding. Plus, some people are just scared of anything related to online savings.

Investment is a good option; look up things you can invest in, whether it's Bitcoin or stocks using the Rise app or something to increase the value of your money. Saving it away is not helpful now. You plan to use it in the future, but by the time you get to that time, you can't even afford half of the things you planned to use it for because inflation is increasing every day. The price of goods this week is higher next week.

So that money you kept last week won't be enough to buy it again, and it's really crazy and painful.  Dropping investment suggestions that you use here can help others learn. What do you use for investing?

I will add my opinion, if we are talking about online investing, then many methods that the Internet offers, they are either with a very small percentage of income, but very high trust. At the same time, if we are talking about high incomes, online, then they already come with a high level of risk of losing money. An interesting example: when I offered investment options online, my friend said, why should I invest money there, if I can invest money in an offline business and turn them over and get up to 50% of the investment amount in a couple of months. Therefore, when they talk about investing now, I understand it more as freezing funds for a long time, with a minimum-average income.

Brother, investment is important but before doing investment on online work you should be knowledgeable person because if you did not get knowledge then you will be successful in your goal . Many online platforms are real and we can invest but firstly you have to learn from mentor because he will explain how to analyze the market and where to invest their money. If one person got knowledge by investment in anything you can learn from that in 2 months if he tried to explain the all things but be innovative because it will change your life.Your perspective will be change and you will imagine that how you will be successful in this market. If we will compare physical work with online work then physical work give more pleasure and online work is frustrating because you have to face screen daily.

[viljy]

People are so used to inflation that they take it for granted. But this is not the case. Before Columbus discovered America, there was no inflation in the monetary system based on the metal standard (silver and gold). For centuries, the world has lived without inflation. When gold and silver from America flooded into Europe, it was only then that inflation appeared in Europe for the first time (food prices rose, followed by everything else).
After the complete abandonment of the gold standard, inflation began to rise at a tremendous pace. This is clearly seen in the example of the depreciation of the dollar, for example, over the past 100 years. Inflation makes people spin like a squirrel in a wheel. Moreover, it is ineffective for society as a whole. An inflationary economy is like a bicycle - if it stops (or someone pushes it), it will fall.
Can Bitcoin solve this inflation problem? Maybe. But bitcoin is a deflationary asset, which is also bad for the monetary system, as it leads to a complete cessation of monetary circulation. At the moment, there is no form of money at all that would be stable over time for a long time.

[NotATether]

People are so used to inflation that they take it for granted. But this is not the case. Before Columbus discovered America, there was no inflation in the monetary system based on the metal standard (silver and gold). For centuries, the world has lived without inflation. When gold and silver from America flooded into Europe, it was only then that inflation appeared in Europe for the first time (food prices rose, followed by everything else).

What?

Well that doesn't seem to be true.

https://chatgpt.com/share/678394b0-0804-800f-a3da-129675dde98c

And even without an artificial intelligence answering that, I already know that several old countries and economies experienced inflation because of printing or oversupplying in some capacity.

Inflation was not something that was invented by banks or anything, it is perpetual in any monetary system. Deflation on the other hand, I don't think anyone's heard of that one before Bitcoin.

[viljy]

Inflation was not something that was invented by banks or anything, it is perpetual in any monetary system. Deflation on the other hand, I don't think anyone's heard of that one before Bitcoin.

Any gold standard is not subject to inflation. Deflation existed long before bitcoin. Deflation is essentially a shortage of money supply. Therefore, for example, to overcome the danger of deflation as a result of the 2008 financial crisis, 3 rounds of QE (Quantitative Easing) were conducted, since deflation is more dangerous for the economy than inflation.
Even earlier, the Bank of Japan conducted a similar fight against deflation, albeit unsuccessfully. During the COVID-19 pandemic, QE 2.0 was implemented. All these are examples of dealing with the threat of deflation.
By the way, there is, for example, a book about the history of monetary systems: Niall Ferguson "The Ascent of Money: A Financial History of the World".

[mihaybus]

Any gold standard is not subject to inflation. Deflation existed long before bitcoin. Deflation is essentially a shortage of money supply. Therefore, for example, to overcome the danger of deflation as a result of the 2008 financial crisis, 3 rounds of QE (Quantitative Easing) were conducted, since deflation is more dangerous for the economy than inflation.

I completely agree - you are absolutely right. These basics about inflation and deflation are indeed fundamental concepts that are typically covered in the first year of an economics degree.

[D-law]

Nice, surely! Inflation is a phenom that can only be managed, not totally eradicated

[EmmanuelBTC]

Inflation deals with the continuous rise in general price level while deflation is simply the opposite of inflation i.e it deals with the continuous fall in the general prices of goods and services. this also apply to money as money rise there is inflation of money as it also falls there is also deflation of money.

[Churchillvv]

Nice, surely! Inflation is a phenom that can only be managed, not totally eradicated

The only reason why inflation can’t be eradicated is because it has been built to a standard that it’s protected and maintained by the few who are elected (selected) into power to represent us in the parliament and the day to day running of our activities, while it’s so difficult remains that if inflation is not in place power will be marginalized which means every social class could achieve the next social class of they want making the rich feel threatened by this hence inflation is used as a tool to make the rich richer and the poor struggle as long as they desire.

Quote and unquote, inflation is the essence inflow of money in the system, it comes when there isn’t scarcity.

[Berry2d]

The only reason why inflation can’t be eradicated is because it has been built to a standard that it’s protected and maintained by the few who are elected (selected) into power to represent us in the parliament and the day to day running of our activities, while it’s so difficult remains that if inflation is not in place power will be marginalized which means every social class could achieve the next social class of they want making the rich feel threatened by this hence inflation is used as a tool to make the rich richer and the poor struggle as long as they desire.

Yes I agree to that good saying, the constant inflation is regulated and controlled by the so called representatives that are there for their selfish interest and greedy mindset. They indirectly monopolise the system such that they will be the ones regulating the price of goods in such a way it will suit there greedy demands and prevent competitive market flow at all times. If political interference is eliminated given room for competition in the market, the rate of inflation will be reduced because everyone will be giving the chance to implement his or market strategy in other to get results and it will indirectly reduce inflation

[Churchillvv]

snip

Yes I agree to that good saying, the constant inflation is regulated and controlled by the so called representatives that are there for their selfish interest and greedy mindset. They indirectly monopolise the system such that they will be the ones regulating the price of goods in such a way it will suit there greedy demands and prevent competitive market flow at all times. If political interference is eliminated given room for competition in the market, the rate of inflation will be reduced because everyone will be giving the chance to implement his or market strategy in other to get results and it will indirectly reduce inflation

The reduction of inflation is not set through political changes but action in political terms however, if the economy is unstable and demands for more money or an economy is in debt it’s best to use the resources of the country to pay such debt but it case is different from theory, here what is basically done is printing or more cash into the system hence eliminating the value of scarcity on the fiat and this derives the masses into increase in living standards.

[gogarza63@hotmail.com]

Goodstuff. My opinion only derives from a returns standpoint, however sharing some beers these conversations are my favorite. As a day trader lots of good stuff to break down and find root causes if possible. Variables are always changing. Personally, that's stressful when you can just make some good calls go play the back nine and just trust yourself for at least 5-7 years. You'll lose yourself staring at your portfolio watching business news all day.  It's Bitcoin. We are owners, managers and janitors here. We can't give you a free this or a free that but what we can promise is a fair reasonable and profitable solution. Just remember! We aren't worldwide but we are wide enough for the world.

[Berry2d]

Both deflation and inflation are some constant things in life that we can not do without but can be controlled to an entend except it is influenced by political activities like the way it is influenced in some countries in Africa like Nigeria and so on.  In African countries, the major causes of inflation is political  activities and greedy mindset of the so called leaders that controls the price of products at all time in an indirect manner by monopolising the system such that it will only suit there political interest and bring more pain to the poor masses