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Author Topic: Inflation and protecting you wealth  (Read 470 times)
Sir Legend
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October 05, 2021, 01:39:05 PM
 #81


I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.
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October 05, 2021, 07:44:27 PM
 #82

and this is the same reason why crypto is continuously growing because Gold is not performing well while crypto is increasing year after year.
though it is indeed that Crypto is the reason why Gold being outperformed yet this is not enough to hold on to.
I don't know whether there is any link between gold and cryptocurrency prices. Gold prices went up by quite a bit during the 2019-2021 period. During these three years, it went up by almost 60% and this is comparable to the returns from the stock market. So there is no point in saying that the gold investments performed poorly. Stocks, gold as well as cryptocurrency market gave sizeable returns during this period. So we can't really say that growth in one sector is due to lag in any of the other sectors.
Gold has been doing great, for me it was one of the best investments I made back in the day, I bought a ton of gold back in 2014, and ever since then both our fiat value dropped like crazy compared to rest of the world, but also gold prices went up like crazy as well. Which is basically how I started on investment world as well, I knew about crypto back in those days as well, I was involved and I was here, and I did had some small investments here too but I got out way too early.

If I put all my money into crypto in 2014, even if it was at the peak of 1400 dollars at the time (which I wouldn't) that would have been nearly 30x return minimum right now, probably a lot more since I could have bought cheaper and I would have waited for 100k, it is just surreal to think that gold has been so great for me and yet it is still nowhere even close to what bitcoin could be, don't get me started on what early ETH would have made me.

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October 05, 2021, 10:10:49 PM
 #83

People must be educated that to protect themselves from inflation they must invest in bitcoin and cryptocurrencies. Time is giving us the reason bitcoin is being accepted by more people, institutions and countries around the world.

I am proud to witness this moment and contribute a grain of sand to what we believe is a way out for the global economy and the inflation that affects societies.
Even if they're educated, if they don't have a money to guard themselves from inflation, it wouldn't make any difference because they're poor and when you're poor, you're going to have more hard time than everyone.
That's the sad reality of being poor, although you have your dreams to make you progress , but you don't have the sufficient funds to start it all. But here in crypto, you don't really need a huge amount of capital just to invest in bitcoin. You can buy even a fraction of it. I know no matter how poor you are, as long as you have the passion to make your goals in life to be achieve, then you should create an action plan for it. Inflation is something that will keep us spending more so if we want not to feel and experience that, then investing into bitcoin and maybe into some real estate will definitely make us more profitable rather than staying affected with this inflation.

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October 06, 2021, 04:18:18 AM
 #84

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.

Gold is a low risk asset, but the same can't be said about property. During the recession of 2008-09, the property prices in premium locations went down by 50% or more. Even gold dived by almost 50% after the peak of 2012. In a way, the corrections we have with cryptocurrency (2014-15, 2018-19) are also of a similar magnitude. The only difference is that the correction for gold and property is very gradual, and at the most we may have a 3%-4% swing per day (even that much is very rare), while in case of cryptocurrency it is not that rare to get a 20% swing in one day.

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October 06, 2021, 09:22:08 PM
 #85


I recently listened to a discussion on which assets could actually be better to protect or even profit from inflation. This comes as most of the developed world is suffering the consequences of a soaring inflation and several pinch points in the supply chains and the international trade, such as a massive demand for freighters and severe queueing in ports.

How would you defend yourself from inflation:
- Buy bitcoin
- Buy more commodities.
- Buy REITs or real state.
- Buy stocks of listed companies.
- Buy art.
- ... any other?

Good, to fight inflation of course, the only investment we can do, if we invest in low-risk types such as gold or property, of course this is not safe, the best thing is to dare to take risks by investing in high-risk types such as cryptocurrencies.
Right. Investing in bitcoin can be a very good solution so we can protect our own economy from the rising inflation and definitely add more to our stored wealth. Bitcoin can be a very good source of profits and a great store of value which is totally different from fiat to which its value is being depreciated as time goes by. Anything that creates fiat investment will never be as profitable as bitcoin. Same with real estate or stocks investments can be very profitable for long term knowing its value will never go down but in upward trend. Gold might be good but traditional, and its value does not create profits as high as bitcoin.

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