How to protect from inflation?

[sana54210]

I am afraid that the day when bitcoin suddenly becomes a real protection against inflation will be the last day for many forum users when they invest in bitcoin Because the hundreds of percent of the profit that attracts many neophytes to the market will disappear. Many people here are happy to tell you what profits bitcoin brings, while culturally keeping silent about what losses it previously brought. Therefore, if you want to protect your money from inflation, then think 100 times about whether it is worth using bitcoin for this, with its high volatility, as well as information and political risks.

There is going to be a limit to making profit from bitcoin and that is a fact. Sure it can still go up a lot more, like it could go x10 higher and that would still not be limit, I can see it be at around x20 and it could maybe be the limit, so there is still a ton of time left, however I believe there is still a limit. Who would think that 20+ trillion marketcap for just bitcoin is possible? I do not believe that could happen, it is not impossible but it sounds very unreasonable to expect that right now.

This is why I believe there is a chance we could see bitcoin not going up too much anymore, kind of like becoming gold where it could still go up tiny amount over course of years. Until that day we should be investing as much as we can because eventually there will be a moment when we will not be able to do it at all and not profit from it.

[wxa7115]

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.

You are not wrong when inflation affects only one country then you can use the currency of another country to protect your wealth, and as you may guess due to the popularity of the US dollar over the world this is a good option, however we need to also distinguish when this tactic will not be useful, we are getting to the point in which investors are avoiding the US dollar, which is one of the reasons the price of bitcoin is going up in value.

So if you are thinking about protecting your wealth I think right now bitcoin and gold are the best options.

[semobo]

Just buy assets that bring passive income or giving appreciation over years, as all we know Gold considered to be the best store of value so this is one way we can save funds, and other modern digital assets like bitcoin are a lot better than gold but lacking the stability of its value is the disadvantage of holding your money in the form of cryptos.

[karanggatak]

Gold has always been a safe haven for assets when a country is experiencing a recession or prolonged inflation, and until now it is still because gold has a physical form so old people still rely on it.
but I see in the future the new generation will start to look at cryptocurrencies to protect their assets from inflation, cryptocurrency in my opinion is currently the answer for all of us assets that can be called "real currency" because it is clear that the total supply and transparent transactions are not the same as fiat which can be arbitrary in print.
maybe in the future crypto will be the number one investment tool to avoid inflation replacing gold.

[angrynerd88]

Actually inflation can not end from the economy but can minimize with solid policies but main contrast when talking approximately inflation and relating to bitcoin is that , bitcoin is an resource that it's increment or diminish isn't having any relationship to expansion.I consider BTC as a currency and an asset as well. That's whether there's inflation within the society or a specific society isn't progressing to influence the cost of bitcoin since it is decentralized and a worldwide resource.Its true inflation affect globally people loses jobs but BTC and crypto market help jobless to survive their lives.

[livingfree]

Actually inflation can not end from the economy but can minimize with solid policies but main contrast when talking approximately inflation and relating to bitcoin is that , bitcoin is an resource that it's increment or diminish isn't having any relationship to expansion.

It is true that inflation will come no matter what happens to the world. But some countries are able to defeat it and gets 0% of increase in its inflation. I saw Japan did it recently and I think there are other countries that are doing better. They might beat it for this year but we will never know what's on it for the next years.

I consider BTC as a currency and an asset as well. That's whether there's inflation within the society or a specific society isn't progressing to influence the cost of bitcoin since it is decentralized and a worldwide resource.Its true inflation affect globally people loses jobs but BTC and crypto market help jobless to survive their lives.

And there will be no more bitcoin that will be issued since it's already limited to 21 million and there's only around 2.3 million bitcoins that hasn't been mine yet.

[wxa7115]

Gold has always been a safe haven for assets when a country is experiencing a recession or prolonged inflation, and until now it is still because gold has a physical form so old people still rely on it.
but I see in the future the new generation will start to look at cryptocurrencies to protect their assets from inflation, cryptocurrency in my opinion is currently the answer for all of us assets that can be called "real currency" because it is clear that the total supply and transparent transactions are not the same as fiat which can be arbitrary in print.
maybe in the future crypto will be the number one investment tool to avoid inflation replacing gold.

Gold has been a great way to store our wealth and it has a long history of doing this incredibly well, however for the new generations gold as an asset you hold is a foreign concept, while for a lot of people of the previous generations the fact that they could hold gold in their hands as a physical asset was an advantage the new generations which live a lot more in the digital world will prefer digital assets to store their wealth.

And so far the only digital asset that can be considered to be a store of value is bitcoin, which gives it a monopoly in the market and in the case of a crisis its value will grow at an incredibly fast pace.

[Ridi]

Protect from inflation:-

Inflation is a natural occurrence in the market economy .Gold has been considered a hedge against inflation🙏.Gold is a real, physical, and hold its value for the most part and Bitcoin is also best asset. 🙏🙏

[LogitechMouse]

Banks are a good protection to inflation but the problem is there is close to zero profits with banks so it's not a good thing to go that route for inflation protection, bitcoin can be a likely candidate but it's inherent volatility is going to be a problem for people that have weak hands. Real estate and gold could do the work just fine but the problem is that both are really expensive.

I think that gold and real estate is the best hedge for inflation followed by stocks and bitcoin and I don't like that you mention banks because they aren't client friendly and they have a lot of paperwork to do but give a meager interest. I do agree that bitcoin isn't a good hedge since the volatility is pretty high.

Real Estate is for me the best. No need for further explanation but most of the richest man worldwide owned a piece of Land.
Gold, Bitcoin and NASDAQ are the 2nd best protectors of inflation.

In general, investing into different assets can protect you from inflation only if you know what you are doing because investing has risk. You might want to invest but the risk of you losing on your investment is very high then it will be useless. You have protected yourself from inflation by investing but you invested on a high risk investment so you will lose more than you will lose in inflation.

Some say Bitcoin isn't a hedge. Yes and No. Yes for people who know when to invest and when to be patient when they need to. No for those impatient people, people who are panicking so easily when they see Bitcoin going down by double percentage in a day and for those who are just investing without proper knowledge.

[suryana]

Banks are a good protection to inflation but the problem is there is close to zero profits with banks so it's not a good thing to go that route for inflation protection, bitcoin can be a likely candidate but it's inherent volatility is going to be a problem for people that have weak hands. Real estate and gold could do the work just fine but the problem is that both are really expensive.

I agree, the bank is actually good, but there is nothing we can get, only our money will continue to decrease because we have to pay the bank monthly money. Bitcoin can be an option for those who like challenges and are willing to take risks. The risk of bitcoin is big but the results are much bigger to gain a profit. It's up to us which one is suitable for us to use as a means of securing our assets.

[iv4n]

Real Estate is for me the best. No need for further explanation but most of the richest man worldwide owned a piece of Land.
Gold, Bitcoin and NASDAQ are the 2nd best protectors of inflation.

In general, investing into different assets can protect you from inflation only if you know what you are doing because investing has risk. You might want to invest but the risk of you losing on your investment is very high then it will be useless. You have protected yourself from inflation by investing but you invested on a high risk investment so you will lose more than you will lose in inflation.

Some say Bitcoin isn't a hedge. Yes and No. Yes for people who know when to invest and when to be patient when they need to. No for those impatient people, people who are panicking so easily when they see Bitcoin going down by double percentage in a day and for those who are just investing without proper knowledge.

People here often say how "real estate investing is the best"! But what is the entry fee? How much do you need to start it, how long before you start collecting profit, how long before making expansion!? Rich people can afford to invest a lot, and they have an advantage here...
In my opinion, investing in crypto is a far better option for the majority of the population, many people dream to have a house or apartment for themselves and they can afford that, how can they afford to run a real estate business? So crypto comes as something easy and simple to do, with the money you have... and plus you support a decentralized economy that can make big changes in the world!

[abhiseshakana]

Real Estate is for me the best. No need for further explanation but most of the richest man worldwide owned a piece of Land.
Gold, Bitcoin and NASDAQ are the 2nd best protectors of inflation.

In general, investing into different assets can protect you from inflation only if you know what you are doing because investing has risk. You might want to invest but the risk of you losing on your investment is very high then it will be useless. You have protected yourself from inflation by investing but you invested on a high risk investment so you will lose more than you will lose in inflation.

Some say Bitcoin isn't a hedge. Yes and No. Yes for people who know when to invest and when to be patient when they need to. No for those impatient people, people who are panicking so easily when they see Bitcoin going down by double percentage in a day and for those who are just investing without proper knowledge.

People here often say how "real estate investing is the best"! But what is the entry fee? How much do you need to start it, how long before you start collecting profit, how long before making expansion!? Rich people can afford to invest a lot, and they have an advantage here...
In my opinion, investing in crypto is a far better option for the majority of the population, many people dream to have a house or apartment for themselves and they can afford that, how can they afford to run a real estate business? So crypto comes as something easy and simple to do, with the money you have... and plus you support a decentralized economy that can make big changes in the world!

Because the current inflation is designed not because of natural factors and inflation is exacerbated by human errors such as corruption, bad administration, excessive taxes, and also printing a lot of money which causes a country's economy to go bad and self-feeding inflation occurs. It should be remembered, that inflation directs investment to non-productive things, namely the accumulation of wealth (hoarding), such as land, buildings, precious metals, foreign currencies at the expense of investment in productive directions such as agriculture, industry and trade. . The accumulation of money will hamper the economy, so it is better to implement a strategic policy of Dues Idle Fund (Tax on idle funds). So that the money rotates which means economic equality. In addition, money must be printed at the minimum level required for transactions and in denominations that have a small nominal value, so that there is not too much money in circulation.

[blckhawk]

It's simple, put it in your bank or invest it into something that appreciates overtime and bitcoin and other reliable cryptocurrencies might be able to help you with protecting yourself from the inflation rate. Or another thing that you could do although it's a bit risk is trying to buy collectibles hoping that one of them is a jackpot in the far future.

[ChiBitCTy]

I've yet to read the whole article, but going off of this list, I am not that impressed.  As a financial advisor I work with client every day and one of the biggest points of discussion lately has been the massive surge in inflation.  Here in the United States inflation has shot way up to 4-5% on average.  The best defense for inflation is a well diversified portfolio.  Of course how to set up your portfolio will depends on your age, your life situation etc.  This list has a bunch of stuff that is NOT necessary to buy.

[alpamar99]

Banks are a good protection to inflation but the problem is there is close to zero profits with banks so it's not a good thing to go that route for inflation protection, bitcoin can be a likely candidate but it's inherent volatility is going to be a problem for people that have weak hands. Real estate and gold could do the work just fine but the problem is that both are really expensive.

I prefer to say gold and real estate about this I think both are good enough for investments with good protection and followed by bitcoin because they consider the high volatility risk aspect.
if you want to invest with a relatively lower standard of risk, it may be true that gold and real estate are the answer to this, but for a greater risk of course bitcoin is the right thing with a note that you have to prepare for the worst because considering the volatility of bitcoin itself and of course with a high risk obtained also not a little risk in accordance with the benefits to be achieved later.
but for the bank I don't really agree with what you say because here if you say my bank is too many rules that apply and the benefits obtained are not comparable to the rules and when compared to one unit it will take a lot of time and is astonishing.

[verita1]

I think I have seen something quickly related to Tudor Jones but it has not been until this moment that I have been motivated to know more.
Thanks OP for mentioning him for reference. I have not followed anyone but also by common sense I have diversified my portfolio.
For me, Bitcoin must be in my portfolio due to many reasons, the main one for believing in it, because I am sure that we are going to protect ourselves from inflation thanks to bitcoin.

"I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. At this point in time, I don't know what I want to do with the other 80% until I see what the Fed is going to do, ”Jones said on CNBC's“ Squawk Box. ”

https://www.cnbc.com/2021/06/14/tudor-jones-likes-bitcoin-calls-it-a-great-portfolio-diversifier-to-protect-his-wealth-over-time.html

[monineklutak]

I think bitcoin is also good for inflation protection. Provides benefits that exceed other investments. It's just that not everyone likes risk because the risk that bitcoin provides is too big so it's not suitable for people who just want to be in the safe zone. However, for myself, I prefer bitcoin because I can get profits.

When you hear bitcoin, what most people think of is a big risk,
it is undeniable that it is true but when we understand it I think we can minimize the risk,
after all it comes back to each person's preference

[Cherylstar86]

I think bitcoin is also good for inflation protection. Provides benefits that exceed other investments. It's just that not everyone likes risk because the risk that bitcoin provides is too big so it's not suitable for people who just want to be in the safe zone. However, for myself, I prefer bitcoin because I can get profits.

When you hear bitcoin, what most people think of is a big risk,
it is undeniable that it is true but when we understand it I think we can minimize the risk,
after all it comes back to each person's preference

Indeed. Once you understand bitcoin and have knowledge about it will help you minimize risk. There's a lot of risk once you enter cryptocurrency but you can minimize it by knowing what to do and especially having strategies on everything you did. Knowing also how to read market helps you also think what strategies you can apply on it. It will just depend on how you handle things. Bitcoin is also good for inflation protection.

[LUCKMCFLY]

There are many ways to protect oneself from inflation, but some that are very accessible to the community in general are given by some of the recommendations made by some economists in the country where I reside, and they are:

1.-Buy products that are inexpensive and that nobody uses.
2.-Keep Gold, precious metals saved.
3.-Try to have the money in Dollar or Euro, a currency that is strong, other than the local currency.
4.-Get rid of the local currency and change it quickly.

These are some measures that they gave more than 5 years ago, but currently the best option is to have or try to start a profitable business such as food, food, among others.

[B-Bit]

Banks are a good protection to inflation but the problem is there is close to zero profits with banks so it's not a good thing to go that route for inflation protection, bitcoin can be a likely candidate but it's inherent volatility is going to be a problem for people that have weak hands. Real estate and gold could do the work just fine but the problem is that both are really expensive.

Inflation is related to the demand and supply of currency.
One of the important countermeasures that countries have taken to control inflation is to control the supply of money to adapt it to the demand for money, and to reduce the pressure of currency depreciation and inflation.