Rising inflation forces investors to look for defensive assets.

[Franctoshi]

What can crypto offer them?

As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.

      Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.

[1715564716]

1715564716

[_act_]

Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.

Fiat can go down because of inflation because government control the price and reduce the value of fiat themselves, bitcoin is not controlled by any government and in long term, the value will increase, it is a deflationary asset.

So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too.

You are using short term for your speculation, check bitcoin price in 2010, 2013, 2016/2017, 2020/2021. You will understand how bitcoin price has been increasing, it has been a net increase and never ending yet.

But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.

Limited and increasing in value. Absolutely yes, one of the best option to go for as investment is bitcoin.

[Coyster]

This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.

I don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.

Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.

Inflation has hit fiat currencies really hard on the back of measures employed to curb the covid pandemic many months ago, the ongoing war has made matters even worse as fiat currencies the world over continues to lose its value; but Bitcoin does not seem to have been affected by all of that, since the war started i have not noticed any serious movement in the price of Bitcoin, thus there are many reasons why i will choose it over many assets either as a hedge, investment, currency, etc.

[_act_]

I don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.

Bitcoin is a speculative asset, many investors yet do not consider it as a safe haven, but if we check this, it is not totally true. Like the El Salvador that bought bitcoin at a price around $50000, or some people that bought bitcoin at all-time-high, bitcoin later decreased, but they have nothing to be worried about, only traders should have someone to be worried about, not long term investors, the price of bitcoin will still later reach all-time-high and reach six digits. It can be said that if someone want to consider bitcoin as a safe haven, he should hold it for at least 4 years or more, then bitcoin as a save haven or store of value would be realized by the holder.

[CaVO32]

I don't think Bitcoin is a safe haven asset yet, Bitcoin can still be volatile in many circumstances, prolly somewhere along the line it could be a safe haven asset. But that doesn't mean it is not a great hedge for fiat devaluation and depreciation, it is, because even after every correction phase/dip, it always rises back up in the long run and it will even earn you profits on your funds you hedged from inflation in the network.

Bitcoin is a speculative asset, many investors yet do not consider it as a safe haven, but if we check this, it is not totally true. Like the El Salvador that bought bitcoin at a price around $50000, or some people that bought bitcoin at all-time-high, bitcoin later decreased, but they have nothing to be worried about, only traders should have someone to be worried about, not long term investors, the price of bitcoin will still later reach all-time-high and reach six digits. It can be said that if someone want to consider bitcoin as a safe haven, he should hold it for at least 4 years or more, then bitcoin as a save haven or store of value would be realized by the holder.

If you are here for long-term, you really don't need to worry the hour-by-hour movement because it will make you crazy if you will follow such movement. If you do believe that bitcoin's price will be valuable in the future, then, you can keep tabs of the market, but should not worry the roller coaster ride in the market. Also, bear in mind that bitcoin is not a safe haven of your asset, but just another option that may possibly give you good returns when the right time comes. So it means, you also need to explore other investment options. Should not look at crypto or bitcoin as the sole option for investments.

[Coyster]

Bitcoin is a speculative asset, many investors yet do not consider it as a safe haven, but if we check this, it is not totally true. Like the El Salvador that bought bitcoin at a price around $50000, or some people that bought bitcoin at all-time-high, bitcoin later decreased, but they have nothing to be worried about, only traders should have someone to be worried about, not long term investors, the price of bitcoin will still later reach all-time-high and reach six digits. It can be said that if someone want to consider bitcoin as a safe haven, he should hold it for at least 4 years or more, then bitcoin as a save haven or store of value would be realized by the holder.

Bitcoin is extremely volatile, and we have experienced sporadic and unexpected plunges in its price, is Bitcoin a risky investment? Yes, because you can't be certain it would hold its value at any point in time, it could either plunge or appreciate in price and thus that doesn't make it a safe haven asset. Your example with El Salvador and long term hodlers is prove that Bitcoin is a speculative asset, Why Because you are looking at the long term and of a true the price of Bitcoin would definitely appreciate in the long period, but isn't that how speculative investments work: You buy an asset and strongly 'guessing' that it would produce profits in the long run and you're unconcerned if it dumps in the short period. Safe haven assets either holds its value or appreciates for a pretty long time like Gold, i am afraid Bitcoin doesn't or not yet at least.

[Poker Player]

What can crypto offer them?

Well, what "crypto" can offer them is a lot of shitcoins that are pump and dump schemes and if they are lucky to get one right, as they will make money, it will compensate them for the inflation increase.

But on the other hand we have Bitcoin, which is the best asset against inflation, safer, and that surely will not give such spectacular returns in percentage terms as it did the first years, but it has some intrinsic characteristics, especially the maximum limit to its production and decentralization, which make it better than the 1900 shitcoins out there,

[Leviathan.007]

Usually, when the inflation rate increases all over the world people will seek investment options and these options can be different for everyone depending themselves, time after time people change their minds and they try to find an investment option to keep them safe from inflation rate also they want to get even some profits over their money they invest during this time, in this case, bitcoin can be a good option because as a new asset for investing in the long term they will save themselves from the inflation rate also they can earn big amount of profits over the money they invested on it.

[Kimonoe]

What can crypto offer them?

As almost everyone around us is talking about inflation both on news, social media and on the internet and with so rising inflation hitting investors has been a topic for discuss.
Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.
So it's a little difficult to recommend crypto for invertors to hedge their funds since all almost every crypto asset is going down in value too. But I still believe that investment in digital asset (cryptocurrency) like Bitcoin is indeed the best and secured place currently for investors to look forward for defense and to hedge their funds.

      Hedging funds into crypto will be a very good option for them because when we have enabling ground for market recovery after this geopolitical distractions, history has shown that Bitcoin (cryptocurrency) has proven to be one of the best performing asset when it comes to return on investment (ROI) for over the past few years for investors when compared to other asset. This is thus, making it a safe heaven for investors to hedge their funds right now. Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.

Inflation is indeed haunting every year, and is getting more and more so that fiat seems to be losing its value. but with the existence of cryptocurrencies, there are indeed many investors who shift their investment to cryptocurrencies, especially for countries that are at war, property assets do not seem to be the best choice for storing assets. although cryptocurrencies are in decline, these assets are not affected by events like wars

[Kakmakr]

The nice thing with Bitcoin is the high volatility.... So, if you bought low and there are a huge recovery of say 80% and you sold your coins after the recovery, then you will cover the inflation influence for a few years.    (and still get some interest on the money, if you re-invest it)

I made 800%+ profit on some of the coins that I sold when the price went above $60 000, so I will be covered for inflation for a couple of years. People should not be discouraged by the large drop in the price.... they should grab the opportunity to buy more coins and then just wait for the price to recover to beat inflation for years!

https://en.wikipedia.org/wiki/List_of_countries_by_inflation_rate

[cabron]

Let's just say we who learn about crypto after 10 years of its existence are still early investors of the industry I think you still can get a lot of profit if you invest today in BTC. There are lots of altcoins too that can greatly make an investor rich and avoid getting affected thoroughly by inflation today.

Some of them may not survive after the bear market but you still can make money out of it if you know which one is hyped well by the shilling army. Not sure about the term Defensive assets. But it's almost a trial and error when you do invest in altcoins so you best read and pick a better prospect.

[Gozie51]

But it's almost a trial and error when you do invest in altcoins so you best read and pick a better prospect.

The challenge of altcoins market is that many shit coins have flooded the market thereby deceiving the interest of investors who majority of them are looking at  profit at the instance of investment and they run into cheap and shit coins because of profit. There are altcoins that will guarantee return but because of their price, investors prefer to go for cheap coins and they get burnt at the end of the day.

[kaya11]

What can crypto offer them?

Therefore investors are seeing it as digital Gold and it almost taking the role of Gold.

Better than gold in terms of transportation ease. It is hard to move 1 Billion USD worth of gold overseas, but in BTC it is so easy and fast too. This has offer them the portability of a million dollar asset.

But on the other hand we have Bitcoin, which is the best asset against inflation

Not really the best of course, we have traditional assets, you know mate, if things get out of hand like we are now facing such treats to humanity, we should be considering of how to survive. We won't be able to use bitcoins when there are no electricity and internet. So a traditional asset is better choice, example farm lands. We can't eat Bitcoins can we? But fruits and vegetables is edible, so in times when inflation really hit us hard, it is better to farm.

[Poker Player]

Not really the best of course, we have traditional assets, you know mate, if things get out of hand like we are now facing such treats to humanity, we should be considering of how to survive. We won't be able to use bitcoins when there are no electricity and internet. So a traditional asset is better choice, example farm lands. We can't eat Bitcoins can we? But fruits and vegetables is edible, so in times when inflation really hit us hard, it is better to farm.

Bitcoin is really the best. Traditional assets are good, better than fiat, of course, but not as good as Bitcoin.

I know something about farm land, and I would say more than you do. I don't know if you are aware that having farm lands without electricity and internet (and I guess without cars and gasoline either), would make you starve.

The amount of land you need to produce enough food for you for a year and in a varied way is enormous, and you could not work it all. Even less without machines.

But I wasn't talking about a Mad Max style situation. Bitcoin is the best store of value today, and if tomorrow we find ourselves in a situation where there is no electricity, no internet, and no machines that run on gasoline, Bitcoin will be the least of your worries. A few guns and a lot of bullets will be much more useful.

[fiulpro]

Considering Gold, there are many things that are wrong with the asset. You need a considerable amount of investment because the volatility is not really that high and it can definately be a good store of value but I do not think that it would be better than bitcoins tho since right now there are many things that are better with bitcoins like :
1. The government cannot simply take over the assets like cryptocurrencies, like bitcoins
2. The profit level is actually very good as compared to gold
3. Volatility gives you so many opportunities to buy when the price is low

Farming cannot provide you with long term profits definately.

[Coyster]

3. Volatility gives you so many opportunities to buy when the price is low

Yes it does, and that is why i strictly believe Bitcoin is more of a speculative asset than an actual store of value. Gold is a 'safe haven' asset and a store of value no doubt about that, and i think that is why many investors still prefer it as a hedge to devaluation of their funds. But even at that Bitcoins volatile and speculative nature is also great, especially when we are looking at the percentage of ROI that can possibly be accrued, but on that note you have to invest for the long term because since it is not a safe haven, it is very possible the price could really drop in the shorter period, but based on it being a speculative asset with quite a lot of potential for the long term, the price is always bound to appreciate back up somewhere along the line, and produce ROI for patient investors.

[Zilon]

Bitcoin is the best, reliable and most secured digital asset in todays world but it's very volatile for inexperienced traders because due to it's inconsistency in trends it keeps switching directions. At the moment investors who have little knowledge about how volatility works just needs to stick to hodling because a life struggle can be buried in a single trade following the high volatility

[crzy]

Bitcoin is the best, reliable and most secured digital asset in todays world but it's very volatile for inexperienced traders because due to it's inconsistency in trends it keeps switching directions. At the moment investors who have little knowledge about how volatility works just needs to stick to hodling because a life struggle can be buried in a single trade following the high volatility

Bitcoin is a good alternative to fight inflation, this is considered more of an investment now than to a digital currency since you can tell that there are still few people who really spend their cryptocurrency. Yes, this market is too volatile but it can be more rewarding if you do things here correctly. Knowledge is very important, it should be your weapon to survive on this market, its not easy to beat inflation but you must deal with it.

[Gozie51]

Literally, some assets has been going down in value including fiat and cryptocurrency due to inflation and other issues around the world.

Fiat can go down because of inflation because government control the price and reduce the value of fiat themselves, bitcoin is not controlled by any government and in long term, the value will increase, it is a deflationary asset.

The lack of control of bitcoin makes it an independent asset capable of return multiple times and free from inflation unlike fiat that is affected by the policies of government. Having fiat in bank as asset has now proved to be inflation prone depending on the time and the rate of inflation but no matter how bitcoin stays in the wallet, it current value is not reduced from the global value and the unit of hodling isn't affected.

[Hydrogen]

Real estate isn't known for being a good inflation protected asset. In the united states, home markets could be considered a deflationary asset. Development of real estate hasn't matched the pace of population growth, leading living space towards being an increasingly scarce commodity. The negative force acting upon US real estate is stagnant wage growth. Yet there are many foreign buyers investing in US real estate who keep markets from collapsing. The united states allows nationals of china and other nations to buy up large masses of its land, which may further incentivize appreciation of real estate value.

Fractional real estate denominated in crypto, where fractional investors (owners) receive a portion of rental income could have potential. To be honest, its not something I've looked into. With the overall down payment and monthly payments being outside the budget of most investors, fractional real estate, which allows them to buy up affordable pieces, could be yet another strategy for acquiring inflation protected assets.

I think russian oligarchs at the moment are investing in UAE real estate for perhaps similar reasons.