How to protect from inflation?

[Obito]

I believe that in this world, there are only two things that will continue on, it's change and inflation. Even the universe is expanding, which is a bit of a stretch but you could still consider that inflation. But I digress, store of value has definitely helped preserve the treasures and riches of the most influential people in the planet as of late, which by the way run amidst multiple crashes and economic downfalls. So it's no surprise but if one should happen within our lifetime, we could expect gold and bitcoin to save our asses.

Bitcoin isn't the best one though, look at the prices right now, a lot of investors got their investments cut in almost half during the recent price dip. It does pprotect from inflation but the volatility makes it uncertain whether you are protected or you will have more loss. In my opinion, the best hedge for inflation would probably be real estate, stock and gold but the real estate is beneficial only if it is an residential building where you can make money for rent. Stocks are better because their volatility aren't that erratic and they almost always go up in the future.

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[el kaka22]

I really wouldn't believe anything at all from this list, they look horrible. Gold is the only one that I may trust but all those nasdaq ones, jp morgans and all that are basically horrible. Yet that bitcoin one shines as brightest there, it is a great one and I can't think of anything better to fight against inflation. This is why I think there is a chance that others could be doing some profits in the short term but there is really not chance that it could be a profitable thing at the long term.

Number one there is bitcoin and number two is gold and all the rest is equally bad if you ask me. At the end of the day there is a chance bitcoin could still reach to 1 million each, it is not going to be right now but I believe it is possible in the next 10 years and that is an amazing long term investment potential.

[Leviathan.007]

More than anything, to stay away from inflation you need some knowledge all these investment options you mentioned above are good if you know how they work, these are in different markets with different price actions and price fluctuation. We all know in order to stay away from inflation and protect your funds you need to invest somewhere, if you get your own investment plan and be careful about risk management and money management any market you mentioned above can be profitable.

[Beparanf]

I believe that in this world, there are only two things that will continue on, it's change and inflation. Even the universe is expanding, which is a bit of a stretch but you could still consider that inflation. But I digress, store of value has definitely helped preserve the treasures and riches of the most influential people in the planet as of late, which by the way run amidst multiple crashes and economic downfalls. So it's no surprise but if one should happen within our lifetime, we could expect gold and bitcoin to save our asses.

Bitcoin isn't the best one though, look at the prices right now, a lot of investors got their investments cut in almost half during the recent price dip. It does pprotect from inflation but the volatility makes it uncertain whether you are protected or you will have more loss. In my opinion, the best hedge for inflation would probably be real estate, stock and gold but the real estate is beneficial only if it is an residential building where you can make money for rent. Stocks are better because their volatility aren't that erratic and they almost always go up in the future.

I agree on gold and real state but not full agree on stock. It depends on the type of stocks you are purchasing since the stocks are highly dependent on the performance of the company which can be affected by inflation. I believe gold and other asset with known increasing value for a long time is the best asset to invest with for avoiding as much as possible the inflation.

[bittraffic]

Digital assets like BTC and ETH should be the best because their price is going to be higher compare to the USD or stablecoin. When you hedge don't just go to USDT because after a year or two it's still going to be the same amount of stablecoin you have unless you stake it on Defi project which is also your option to protect yourself from inflation.

Don't go for stocks because these are literally not yours, that only you have is the contract right but it's not in your wallet.

[Dread Pirate Roberts]

As expected gold was always been a savior of financial inflation around the world. and when it comes to crypto, inflation is actually considered a good opportunity, and also i think investors or traders who are used to trading in crypto market are no longer afraid of inflation anymore that's what they see everyday.

[Coyster]

Bitcoin isn't the best one though, look at the prices right now, a lot of investors got their investments cut in almost half during the recent price dip. It does pprotect from inflation but the volatility makes it uncertain whether you are protected or you will have more loss.

The thing is, if you put into consideration when some of this investors bought/converted their Fiat to Bitcoin, plus if you trace Bitcoins price from early last year when the pandemic shed it's milk teeth till now, quite a lot of them are still in profit, cause $36k which is what Bitcoins price is as I type this is not as bad as people make it seem. Investors who do their research should know that there'll definitely be price corrections/plunges when they 'employ' Bitcoin as a hedge to inflation, and that there's also no asset that does not have it's cons. But imo, more emphasis should be directed at how fast an asset can rise out of its bear period and give profits and for me Bitcoin is prolly the best at that.

[crzy]

Good investments always work to fight inflation and with Gold, it has been the best solution into many financial institutions, hold more gold and save your money from a higher inflation. With regards to cryptocurrency, this market is slowly becoming the best asset as well to protect your money from inflation, despite of the volatility on Bitcoin many still believe that it can be consider as a digital gold, which I also believe and will continue to hold more o protect my money from future financial crisis.

[tabas]

As expected gold was always been a savior of financial inflation around the world. and when it comes to crypto, inflation is actually considered a good opportunity, and also i think investors or traders who are used to trading in crypto market are no longer afraid of inflation anymore that's what they see everyday.

That's most countries that do their "reserve" for gold. Because it's a very effective way of beating inflation. But aside from gold, bitcoin, and others on the list, real estate is also a good one.
Your investment through real estate can generate your income from renting it or selling it and taking capital gains from it. Actually, there are too many ways but not as an expert, taking little steps at a time.

[bryant.coleman]

That's most countries that do their "reserve" for gold. Because it's a very effective way of beating inflation. But aside from gold, bitcoin, and others on the list, real estate is also a good one.
Your investment through real estate can generate your income from renting it or selling it and taking capital gains from it. Actually, there are too many ways but not as an expert, taking little steps at a time.

Gold is the best asset that offer protection from inflation as far as the global governments are concerned. Because it is having a limited supply, has been in use for many thousands of years, and is in physical form (and can be secured if you have a million strong army). The problem with Bitcoin is that it is volatile, not having a global acceptability and also since it is in digital form there is always a chance that it can be stolen by criminal elements. For the ordinary people however, many of these factors and not applicable and Bitcoin may be more appealing when compared to gold.

[fiulpro]

I do think we can add one more point here:

1. Education
No matter where you are and what are the odds against you, you will be able to do well if you have education, experience and at the same time sharp mind.
These skill sets are way more important than gold or any other investments. You can sell your gold or Bitcoins for actually investing in yourself and that will all be worth it at the end of the day.

Other than that I think those points are really cool and we can also establish that Bitcoins have increased in price at such an uneventful pandemic and the people who owned it did win a big time. Therefore we can easily infer it might help you in the future but should never disregard the word "might".

[justdimin]

As expected gold was always been a savior of financial inflation around the world. and when it comes to crypto, inflation is actually considered a good opportunity, and also i think investors or traders who are used to trading in crypto market are no longer afraid of inflation anymore that's what they see everyday.

That's most countries that do their "reserve" for gold. Because it's a very effective way of beating inflation. But aside from gold, bitcoin, and others on the list, real estate is also a good one.
Your investment through real estate can generate your income from renting it or selling it and taking capital gains from it. Actually, there are too many ways but not as an expert, taking little steps at a time.

Back in the day there was something called "gold standard" which meant that there was a value for the gold nations have in their reserves and they only printed that much fiat, so if you had like 100 billion dollars worth of gold in the reserves bank, then you could have 100 billion dollars of money in the banknote form as well, which allowed inflation to be capped and it also allowed people to get more fair share, wealthy people couldn't get rich forever, it was impossible because since there was a limited amount, that meant people had to be paid.

When that was removed and nations started to print as much money as they want, it started to be the world we live in, a horribly difficult world to live in, and that is what I think really ruined everything, I believe we should be living in a world where it is easier to make a profit using crypto instead of gold for the same standard now.

[Fortify]

Hello community,

I want to start a topic that I think is interesting for the immediate future of cryptocurrency investors, the inflation. One of the consequences of the global pandemic we are experiencing seems almost certain to be the injection of money into the world's economies at levels never seen before. This will undoubtedly lead to an increase in inflation.

I leave you the link (https://www.docdroid.net/H1fuimX/the-great-monetary-inflation-pdf) to a paper by a very well known and knowledgeable on the subject that talks about the performance of Central Banks and different ways to protect our assets against possible inflation. In my opinion there are very coherent things that are worth knowing. It is true that I personally disagree on some points but in general, I think it will be useful for everyone. Here is an image of the ways to protect our assets that Mr. Tudor Jones talks about in his article:

 


I think you might find it interesting and helpful. I hope you find it useful and give your opinion on the subject.

As with any great investing advice we have to be mindful at all times that what has worked in the past will not necessarily be the same in the future. Take bonds for instance, for many decades they have been providing a solid return that has generally beaten inflation by a nice margin, however that has collapsed in the current low interest rate environment and lots of money poured out because the returns are shockingly low. Oil (the paper makes reference to commodity) also went negative for a period last year when people were paying for others to take it off their hands because storage capacity was maxed out everywhere, that was unthinkable until it happened. Cryptocurrency is providing another asset class, however it is most useful to the super rich (and potentially criminal money launderers) at it's current valuation levels because it is allowing them - as the paper says - to move vast amounts. For all it's positives, it is going to ultimately come under more and more scrutiny by governments in order to track illicit money flows. The best hedge against inflation is likely to be profit generating companies, with the most stable in the Americas/Europe and a few other locations.

[tabas]

That's most countries that do their "reserve" for gold. Because it's a very effective way of beating inflation. But aside from gold, bitcoin, and others on the list, real estate is also a good one.
Your investment through real estate can generate your income from renting it or selling it and taking capital gains from it. Actually, there are too many ways but not as an expert, taking little steps at a time.

Gold is the best asset that offer protection from inflation as far as the global governments are concerned. Because it is having a limited supply, has been in use for many thousands of years, and is in physical form (and can be secured if you have a million strong army). The problem with Bitcoin is that it is volatile, not having a global acceptability and also since it is in digital form there is always a chance that it can be stolen by criminal elements. For the ordinary people however, many of these factors and not applicable and Bitcoin may be more appealing when compared to gold.

I agree that most governments are relying on gold because it is tested and less volatile than bitcoin. But I know some countries that have the most bitcoins in their possession but I don't know if they're treating it as a reserve but as far as their concern, they've got bitcoin and their asset is vast on it.
And for usual stealing of gold, it's not going to be easy because of its physical attributes that cannot be done and stolen in a split seconds.

[wxa7115]

Hello community,

I want to start a topic that I think is interesting for the immediate future of cryptocurrency investors, the inflation. One of the consequences of the global pandemic we are experiencing seems almost certain to be the injection of money into the world's economies at levels never seen before. This will undoubtedly lead to an increase in inflation.

I leave you the link (https://www.docdroid.net/H1fuimX/the-great-monetary-inflation-pdf) to a paper by a very well known and knowledgeable on the subject that talks about the performance of Central Banks and different ways to protect our assets against possible inflation. In my opinion there are very coherent things that are worth knowing. It is true that I personally disagree on some points but in general, I think it will be useful for everyone. Here is an image of the ways to protect our assets that Mr. Tudor Jones talks about in his article:

 


I think you might find it interesting and helpful. I hope you find it useful and give your opinion on the subject.

I only agree with gold and bitcoin on that list, when people think of inflation they do not think of the one we have every single year they think of inflation out of control also known as hyperinflation.

When inflation like that comes paper assets perform very poorly and the ones that perform really well or can at least track inflation are hard assets, assets like gold, bitcoin, jewelry, real state and works of art do well under those circumstances but even simple things like having a way to produce your own food can be a great way to protect you from inflation as you will not spend as much money as others in food, so going a little bit off the grid is also a good way to protect you so things like solar panels, avoiding debt and having different sources of income can be a decent way to obtain some protection as well.

[fullhdpixel]

More than anything, to stay away from inflation you need some knowledge all these investment options you mentioned above are good if you know how they work, these are in different markets with different price actions and price fluctuation. We all know in order to stay away from inflation and protect your funds you need to invest somewhere, if you get your own investment plan and be careful about risk management and money management any market you mentioned above can be profitable.

Someone who is into this crypto market can easily surpass inflation because the growth of Bitcoins is always more than the inflation even in the worst bear runs. I mean the yearly growth of Bitcoins is higher than the inflation rate in almost any country, I believe. As soon as you find a way where you earn higher than the inflation rate you will be safe.

If for example you invest under someone and they pay you 25% interest yearly, the inflation rate is for example 20% yearly then you easily earned 5% but that's the difficult part, to find such opportunities where you earn high but safe interests.

Investing in Bitcoins is a wise idea like I said but it always comes with a higher risk hence not the ideal choice yet.

[tygeade]

TD;DR

There might be many ways of neglecting inflation and I will share one of them below. I have never tested it so correct me if I am wrong about it.

1- You live in a country where the inflation rate is high.
2- You pick a developed nation that faces the least inflation maybe like the U.S.
3- You then buy the currency of that country with all your savings.
4- Now as inflation happens you don't face it because you always had your money as dollars (or whatever you picked) so you will easily overcome it or at least minimize it.

I wonder if this works or I am missing something.

[dark1234]

Inflation itself is an economic condition that makes the price of needed goods higher and results in a change in the balance between the flow of money obtained and the goods traded. In difficult times like this, how to deal with inflation is very difficult and maybe saving funds in the form of gold is more possible because the impact is not too influential while storing it in bitcoin is very risky, especially for a beginner who is easily emotional with prices or other options, namely you are looking for extra money by looking for a job in this forum according to your talent maybe this will be the solution

[just_Alice]

I do think we can add one more point here:

1. Education
No matter where you are and what are the odds against you, you will be able to do well if you have education, experience and at the same time sharp mind.
These skill sets are way more important than gold or any other investments. You can sell your gold or Bitcoins for actually investing in yourself and that will all be worth it at the end of the day.

Other than that I think those points are really cool and we can also establish that Bitcoins have increased in price at such an uneventful pandemic and the people who owned it did win a big time. Therefore we can easily infer it might help you in the future but should never disregard the word "might".

Education is very important in terms of finding a stable job, and that's about it, but, sadly, that won't save us from inflation, because all payments are in fiat. That's why it's important to invest in stable assets.

In addition, if someone is thinking of starting a business project - even then education is not that important, because the first thing you're going to need is networking, connections, presentation and persuasion skills, motivation and commitment, and, of course, idea. All of that doesn't necessarily require formal education and having a personal business is a way better source (when successful) of income, than a regular job.

[AndySt]

More than anything, to stay away from inflation you need some knowledge all these investment options you mentioned above are good if you know how they work, these are in different markets with different price actions and price fluctuation. We all know in order to stay away from inflation and protect your funds you need to invest somewhere, if you get your own investment plan and be careful about risk management and money management any market you mentioned above can be profitable.

Someone who is into this crypto market can easily surpass inflation because the growth of Bitcoins is always more than the inflation even in the worst bear runs. I mean the yearly growth of Bitcoins is higher than the inflation rate in almost any country, I believe. As soon as you find a way where you earn higher than the inflation rate you will be safe.
If for example you invest under someone and they pay you 25% interest yearly, the inflation rate is for example 20% yearly then you easily earned 5% but that's the difficult part, to find such opportunities where you earn high but safe interests.
Investing in Bitcoins is a wise idea like I said but it always comes with a higher risk hence not the ideal choice yet.

In the case of the bitcoin story, you can not only lose more than from inflation, but also lose much more due to the volatility of the exchange rate A lot depends on the entry and exit points to the asset, because the spread is very large. Bitcoin is a very risky asset to invest in at this point in time, and conservative investors should stay away and wait for the moment when the bitcoin market will pass a certain stage of maturity. Until recently,it seemed that such a stage had already arrived, but then there was a crazy growth, which was replaced by a crazy fall after a couple of bad news.