How to protect from inflation?

[LUCKMCFLY]

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.

This type of control is good to do when the economy can be controlled within the country without having fallen so much in inflation and its government system always accepts and seeks progress, when passive indices increase, governments begin to mask those numbers, that by less happened in the case of Venezuela, the passive indices published by the Central Bank were incorrect, so the government began to devalue the currency to have more liquidity, a liquidity that is obtained at the moment but that harms the internal economy.

I think that an economy when the so-called "Corralitos" is applied to it is because something is wrong, and it is an indication so that those who can, manage to change their local FIAT money to money such as USD, Eur, or hard currency, at best Of the cases, those who manage to do excellent, protect themselves, and those who want to save in the case of Venezyuela what they do is buy BTC, cryptocurrencies and play NFT, it is the only way that people now have to protect themselves against hyperinflation, apart from doing all kinds of business.

[1714691272]

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[Zanab247]

Here are some ways we can protect from inflation:
1) Good leader: The government will make sure all the economist are well trained for the field. Once there is a good leader in all economy sector,  very easy to protect inflation in the community.
2) legalized bitcoin: Government should make sure bitcoin is legalized in the country so that, it will be easy for them to protect their economy from inflation.
3) surplus of money: Government must inform the central bank to print more money that will make the economy not to experience inflation in the country.
4) Company : The government should allow more companies into the country so that there will be surplus of goods and services in the country. Once there is more companies in the communities, inflation will be far from the citizens.

[Ucy]

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.

Something important to note: if government does not print money while there is shortage of goods and services, there will still be inflation. Saying this so people don't think it's only money printing that causes inflation. There are couple of factors aside printing money that can contribute to inflation.

[barbara44]

This type of control is good to do when the economy can be controlled within the country without having fallen so much in inflation and its government system always accepts and seeks progress, when passive indices increase, governments begin to mask those numbers, that by less happened in the case of Venezuela, the passive indices published by the Central Bank were incorrect, so the government began to devalue the currency to have more liquidity, a liquidity that is obtained at the moment but that harms the internal economy.

I think that an economy when the so-called "Corralitos" is applied to it is because something is wrong, and it is an indication so that those who can, manage to change their local FIAT money to money such as USD, Eur, or hard currency, at best Of the cases, those who manage to do excellent, protect themselves, and those who want to save in the case of Venezyuela what they do is buy BTC, cryptocurrencies and play NFT, it is the only way that people now have to protect themselves against hyperinflation, apart from doing all kinds of business.

Nations feel like they have to, because if they show that it is doing horrible then it is nearly guaranteed to lose the next elections. For example, in my nation there is a bad person at the top that half of the nation hates but the other half is scared of our half and that is why he keeps winning. That dude keeps showing great numbers on paper, like inflation at max 10% and his followers keep believing that, hell the grocery store alone had 50%+ change in the last 1 year because of the pandemic, so 10% inflation is impossible.

But, what about the "good" (arguable) guys that I support, will they show the real numbers when they get the power? Of course they can't, why? Because it is 50% and shown 10% now, if they even make it down to 30%, it will be 10% to 30% on paper so that will cause them to lose a lot of votes even though in reality they made it better.

[Greenwood2023]

I don't think you can really protect yourself from inflation, that is to say there is no way to stop inflation from happening. But that does not mean your wealth or assets should diminish as a result.
The best way to protect your wealth from inflation is to grow it.

[Abiky]

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:
...

The best way to protect yourself from inflation is by investing into assets which act as a store of value. I'd say both Gold and Bitcoin fit the bill nicely. In times of crisis, you can count on these scarce commodities to protect your capital for the long haul. The more governments print money, the higher the value of both Gold and Bitcoin will be. These are pandemic times we're living into, so it's normal to see some inflation as governments try to protect their economies. If you held Gold and/or Bitcoin prior to COVID-19, you would've obtained massive gains by now. Once the pandemic is over, you can expect these assets to decline considerably in price. Inflation is inevitable, so it's best to act quickly before it's too late. Just my opinion

[qwertyup23]

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.

Banks do offer some interest rate but the returns are relatively low compared to the other investment mechanisms available. Though the proceeds might be low, at least what you get is a safe and stable income that provides you security until long-term.

Like what most people have suggested, investing into real estate or purchasing gold may be the key to combat inflation. Investing into non-renewable resources or things that are scarce may also help you against inflation in the long-run.

[zanezane]

I don't think you can really protect yourself from inflation, that is to say there is no way to stop inflation from happening. But that does not mean your wealth or assets should diminish as a result.
The best way to protect your wealth from inflation is to grow it.

Yeah you can, invest your money in something that moves up in inflation, I mean that's how they do it in banks so I don't think that there's no way that you can't protect yourself from inflation. The reason that you're saying that is probably because we still use fiat even though there's already a cryptocurrency.

[jrrsparkles]

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.

Banks are not a place when you want to save your asset value, especially in this 2020 the inflation rate probably higher than the returns from the savings so you lose 1 or 2% every year when holding the cash in banks. You have binds which are better compared to bank and also highly secured but this 21st century everyone wants to be rich quicker for that Bitcoin may help if they buy and sell the coins at the right time and finally we need to know that nothing comes easily in this life.

[Gyfts]

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.

Labor/product shortages also contribute to this - it was inevitable post-Covid that inflation was going to occur for any economy. The supply chain issues that were persistent in 2020 are having effects seen now, so it's not anything surprising, but the point is money supply is one aspect of inflation, that's only compounded by other issues.

[inashed]

- Real state. It does not get more "real asset" than this. Land has a multi-millennial tailwind due to population growth.

"HOME OWNERSHIP A THING OF THE PAST
    Privately owned housing would become a thing of the past. The cost of housing and financing housing would gradually be made so high that most people couldn't afford it. People who already owned their houses would be allowed to keep them but as years go by it would be more and more difficult for young people to buy a house. Young people would more and more become renters, particularly in apartments or condominiums. More and more unsold houses would stand vacant. People just couldn't buy them. But the cost of housing would not come down. You'd right away think, well the vacant house, the price would come down, the people would buy it. But there was some statement to the effect that the price would be held high even though there were many available so that free market places would not operate. People would not be able to buy these and gradually more and more of the population would be forced into small apartments. Small apartments which would not accommodate very many children. Then as the number of real home-owners diminished they would become a minority. There would be no sympathy for them from the majority who dwelled in the apartments and then these homes could be taken by increased taxes or other regulations that would be detrimental to home ownership and would be acceptable to the majority. Ultimately, people would be assigned where they would live and it would be common to have non-family members living with you. This by way of your not knowing just how far you could trust anybody. This would all be under the control of a central housing authority. Have this in mind in 1990 when they ask, "How many bedrooms in your house? How many bathrooms in your house? Do you have a finished game room?." This information is personal and is of no national interest to government under our existing Constitution. But you'll be asked those questions and decide how you want to respond to them."

https://pastebin.com/cFa6x8M8

[jaberwock]

Banks are not a place when you want to save your asset value, especially in this 2020 the inflation rate probably higher than the returns from the savings so you lose 1 or 2% every year when holding the cash in banks. You have binds which are better compared to bank and also highly secured but this 21st century everyone wants to be rich quicker for that Bitcoin may help if they buy and sell the coins at the right time and finally we need to know that nothing comes easily in this life.

Inflation is nearly always higher than the returns you can get from a banks savings account interest rate. There are few nations that may achieve it but it is not common, 95%+ of the nations in the world have banks that pay under inflation rate so you definitely lose money. All in all, I would say that the best case would be to end up with profit over course of long years with stock market, gold, and now we have crypto.

Crypto could be volatile and that does put added stress and pressure to investors, that part I understand. However, the reality is that we are doing something that is less risky than most other things since in the long run it always goes up. If you look at it in 6 months periods it is volatile, but if you look at it in 5 years terms then it is awesome.

[jrrsparkles]

Banks are not a place when you want to save your asset value, especially in this 2020 the inflation rate probably higher than the returns from the savings so you lose 1 or 2% every year when holding the cash in banks. You have binds which are better compared to bank and also highly secured but this 21st century everyone wants to be rich quicker for that Bitcoin may help if they buy and sell the coins at the right time and finally we need to know that nothing comes easily in this life.

Inflation is nearly always higher than the returns you can get from a banks savings account interest rate. There are few nations that may achieve it but it is not common, 95%+ of the nations in the world have banks that pay under inflation rate so you definitely lose money. All in all, I would say that the best case would be to end up with profit over course of long years with stock market, gold, and now we have crypto.

Crypto could be volatile and that does put added stress and pressure to investors, that part I understand. However, the reality is that we are doing something that is less risky than most other things since in the long run it always goes up. If you look at it in 6 months periods it is volatile, but if you look at it in 5 years terms then it is awesome.

Still the traditional investors are scared of cryptocurrencies to add them into their portfolio as bigger part because its literally new when comparing with the other existing ways. Anyhow after 2020 more traditional investors consider bitcoin and other cryptos to be added and in the upcoming years it will grow for sure and never forget the fact early investors make more reap so if we want more returns then we have to take the risk.

[Abiky]

Inflation is nearly always higher than the returns you can get from a banks savings account interest rate. There are few nations that may achieve it but it is not common, 95%+ of the nations in the world have banks that pay under inflation rate so you definitely lose money. All in all, I would say that the best case would be to end up with profit over course of long years with stock market, gold, and now we have crypto.

Crypto could be volatile and that does put added stress and pressure to investors, that part I understand. However, the reality is that we are doing something that is less risky than most other things since in the long run it always goes up. If you look at it in 6 months periods it is volatile, but if you look at it in 5 years terms then it is awesome.

Crypto (mainly Bitcoin) is still the best way to protect yourself from inflation. Volatile prices are nothing if you think about the long-term value of your investment. Bitcoin is already beating Gold with the constant uptrend in price. It should only be a matter of time before most investors choose Bitcoin on top of Gold as a safe haven.

I don't think inflation will destroy Fiat, since governments still support it. Smart people will act quickly by securing their capital with a store of value, before it's too late. Those who live with inflation without doing anything about it, will ultimately lose purchasing power. With Gold and Bitcoin, we no longer need to worry about becoming a victim of inflation ever again. Just my thoughts

[Oilacris]

Banks are not a place when you want to save your asset value, especially in this 2020 the inflation rate probably higher than the returns from the savings so you lose 1 or 2% every year when holding the cash in banks. You have binds which are better compared to bank and also highly secured but this 21st century everyone wants to be rich quicker for that Bitcoin may help if they buy and sell the coins at the right time and finally we need to know that nothing comes easily in this life.

Inflation is nearly always higher than the returns you can get from a banks savings account interest rate. There are few nations that may achieve it but it is not common, 95%+ of the nations in the world have banks that pay under inflation rate so you definitely lose money. All in all, I would say that the best case would be to end up with profit over course of long years with stock market, gold, and now we have crypto.

Crypto could be volatile and that does put added stress and pressure to investors, that part I understand. However, the reality is that we are doing something that is less risky than most other things since in the long run it always goes up. If you look at it in 6 months periods it is volatile, but if you look at it in 5 years terms then it is awesome.

Still the traditional investors are scared of cryptocurrencies to add them into their portfolio as bigger part because its literally new when comparing with the other existing ways. Anyhow after 2020 more traditional investors consider bitcoin and other cryptos to be added and in the upcoming years it will grow for sure and never forget the fact early investors make more reap so if we want more returns then we have to take the risk.

Some had already taken some risk but most of them are just still on observation mode but the question is, how long they would really be like that? They are just missing out the chance on making big profits

but well its their money to use or invest on and i cant really blame off for them to have in doubt because crypto market is way too volatile and its just normal that you would really have hesitance or doubts

on taking up some actions specially you are risking up your money in regarding to this.Lets just wait if those people will be jumping in on a particular time.

[boumalo]

-Gold
-Bitcoin
-Assets
-Learn skills and invest on yourself

[dezoel]

We all know very well that from that list Bitcoin is like the best option we have there. Then apart from Bitcoin I think gold is the next thing that is good there. Other ones are good as well, but what I don’t like about them is that what you’re getting in return isn’t that much compared to what you’re going to get when you are investing in Bitcoin and other cryptocurrency or gold at least.

I’ve done most of these and at the end of the year you will be wondering what’s the need of investment? It’s just like when I used to invest in bonds, at the end of the year the profit that I make is always too small that I usually don’t see the need for me to start investing the next year. But, with Bitcoin I always see a reason to invest even more than what I invested the previous year, because the investment is usually worth it, although there are risk involved.

[pinggoki]

Bitcoin offers much higher profitability with the same amount of risk as the NASDAQ 100 and the likes. To some this automatically means bitcoin is the superior anti-inflation agent that everyone should use. But then again I would suggest you only invest on assets that you are most comfortable about because no matter what happens, bitcoin is still susceptible to losses. Just because it's rainbows and butterflies right now doesn't mean it will stay like that forever.

We all know very well that from that list Bitcoin is like the best option we have there. Then apart from Bitcoin I think gold is the next thing that is good there. Other ones are good as well, but what I don’t like about them is that what you’re getting in return isn’t that much compared to what you’re going to get when you are investing in Bitcoin and other cryptocurrency or gold at least.

I’ve done most of these and at the end of the year you will be wondering what’s the need of investment? It’s just like when I used to invest in bonds, at the end of the year the profit that I make is always too small that I usually don’t see the need for me to start investing the next year. But, with Bitcoin I always see a reason to invest even more than what I invested the previous year, because the investment is usually worth it, although there are risk involved.

I wouldn't say "best" but in turn I would say it's a much more profitable option that anyone with prior knowledge could take and include in their portfolios. The profitability is there, the risk is as high as investing in the NASDAQ 100, or at least that's how I like to think about it, and there are multiple paths for future use-cases, so the relevance will never die off. All-in-all bitcoin is a good asset that everyone should at least hear about.

[SoeNan89]

To beat inflation, you must earn at least 6% of your investment. There are many options you can try. You can easily earn much more than 6% by trading your shares. If you are an experienced investor, you will know that stocks are one of the riskiest investments. In fact you can lose your money up to 50% or it could be more than that.

[Cindella]

Investing in valuable assets can effectively avoid inflation, and bitcoin is now a good way to protect funds from inflation.

The decentralization and fixed finiteness of Bitcoin will make it more valuable as people's demand for it increases. Long-term investment can be profitable and can be protected from inflation.