Rising inflation forces investors to look for defensive assets.

[LUCKMCFLY]

When talking about defensive assets, everyone thinks of Gold as their first option, Real Estate investment as their second option and some people with a very low percentage think of BTC, despite the fact that BTC has a much faster growth than gold itself , but it has an impediment that has been highlighted by the big news worldwide, as well as by some economists and, of course, by bankers and some governments, when they say that it is a very high-risk asset and that they do not recommend it.

Unfortunately many people still faithfully believe in the news and manipulation systems where they do not think for themselves that an asset can be bought at $44k right now and then reach $100k more, that is very difficult to see, however many people already is waking up and they are looking at BTC as a safe haven, this is to be admired.

A lot of population are still sticking to the traditional assets because they want to see their assets. Whereas, with bitcoin, most of them are hesitant because it is new, and the truth is most of them don't know how to transact with crypto. So they prefer to be on the safer side, which are the tangible assets. We can't blame them because people are used to these assets. But for those who discovered crypto, they feel they are lucky to be in this market. Patience is needed here and understanding of the market, in order to gain from this market. So yes, this market is not for all.

Because it is a new market and to be honest, there are too many scams around crypto. Many people haven't entered the market when they hear about cryptocurrencies, the first thing that comes to mind is bitcoin. Because this causes misunderstandings that make them not really fully trust bitcoin.

Along with the short-term volatility of bitcoin is also what makes them fear their wealth will evaporate when investing in bitcoin, only those who have been in the market long enough can feel the difference between bitcoin and its true value.

Unlike the Stock Market, it is known that to invest there you need to do a very serious study to decide where to put the money and over time many benefits will be produced, but this is very different because in the crypto market the safe asset or currency is Bitcoin. , and that very few people know, some do not buy because sometimes they see that the price drops to $40k, $30k, it can even drop to $20k, but what they do not know is that their last ATH is close to $70k it can even go up to $100k or more, and this alone is an extreme cause of very juicy profit, this is what very few know and are afraid to invest.

[kryptqnick]

Op is saying assets are going down due to rising inflation, but assets, from what I've read, tend to actually rise along with the inflation, normally. But the op is also writing that cryptos are going down due to inflation, if I understood correctly, which doesn't make any sense. Bitcoin and many other cryptos aren't susceptible to inflation and aren't dependent on what goes on with fiat. Also, given that Bitcoin tends to rise in value over time, some invest in it specifically to avoid inflation. What we see now it a rather minor decrease of the prices, which occurred after an upward wave. So it's just a correction, and there's no need to look for a deeper meaning here, IMO.

[LUCKMCFLY]

Op is saying assets are going down due to rising inflation, but assets, from what I've read, tend to actually rise along with the inflation, normally. But the op is also writing that cryptos are going down due to inflation, if I understood correctly, which doesn't make any sense. Bitcoin and many other cryptos aren't susceptible to inflation and aren't dependent on what goes on with fiat. Also, given that Bitcoin tends to rise in value over time, some invest in it specifically to avoid inflation. What we see now it a rather minor decrease of the prices, which occurred after an upward wave. So it's just a correction, and there's no need to look for a deeper meaning here, IMO.

What happens is that when a system is in full inflation, things with respect to the local currency always increase, that is why some countries with hyperinflation resort to what they call a kind of "corralito", the banks try to control the withdrawal of fiat so liquidity doesn't leak out, however when you have some other ways to compare the local currency like the euro, the dollar, the local currency is usually seen as something very volatile and weak, that's why with the local currency prices rise, but as for the world economy increases to maintain the "standard" value. Cryptocurrencies are clearly above this economy, especially BTC because it is deflationary in nature and this is very inflation-protective, at least for particular economies.

I have experience of this because I live in a country with a totally uncontrolled economy, it no longer obeys traditional economic laws, in fact in a possible world crash the local currency of the country where I am would rise, these things are for me like the enigmas that they cannot be solved by traditional economists.

[777Jolami]

The higher the inflation rate, the faster cash depreciates, and investors seek defensive assets that are less susceptible to inflation.  gold, real estate or cryptocurrencies are always interested by investors, investors always want to find a safe investment with high interest rates, I am more interested in trusting cryptocurrencies because Bitcoin is  The coin is resistant to inflation, due to the limited supply of bitcoins and the ever-increasing demand.

[barbara44]

Investors are already investing just before a massive inflation came, we should not worry about them but worry on those regular individuals that did not know how to invest because they are the ones that can get affected the most by inflations but there is no need to force them, just to talk to them calmly about this issue.

If they will agree and invest then that's good for them but if not then that's already their problem. They choose to live in a much harder way but they are already used to this. Cryptos price goes down but this is not caused by the inflation, crypto is rather the inflation saviour. The decline in the crypto price are normal.

[RealMalatesta]

The higher the inflation rate, the faster cash depreciates, and investors seek defensive assets that are less susceptible to inflation.  gold, real estate or cryptocurrencies are always interested by investors, investors always want to find a safe investment with high interest rates, I am more interested in trusting cryptocurrencies because Bitcoin is  The coin is resistant to inflation, due to the limited supply of bitcoins and the ever-increasing demand.

The difference between gold, real estate and crypto is the fact that crypto could be more volatile than all of them and it is cheaper to get in. I am sure that you could buy a very small amount of gold if you want to invest into gold but you have to physically go and get it and store it in a safe place, which is all work that is not needed in the crypto world, buy some and store it digitally in a safe place all takes 1 minute.

Real estate costs a lot so it is always bad. This means it leaves us with crypto and the good ones at that, with something like bitcoin you neither need money like real estate amount, nor you would have to wait as long as you would with a gold.

[Cookdata]

Investors are already investing just before a massive inflation came, we should not worry about them but worry on those regular individuals that did not know how to invest because they are the ones that can get affected the most by inflations but there is no need to force them, just to talk to them calmly about this issue.

If they will agree and invest then that's good for them but if not then that's already their problem. They choose to live in a much harder way but they are already used to this. Cryptos price goes down but this is not caused by the inflation, crypto is rather the inflation saviour. The decline in the crypto price are normal.

They didn't choose that life! I was having a conversation with my Dad and cycle of his friends why they didn't invest in safe assets when others where investing and putting money into Gold and some stocks, the reply I got was they weren't aware as they were caught up by idea of going to school, graduate with good results and find a good job that will sort out their bills, they didn't realize that they have been working while there pay check was becoming worthless everyday.
Inflation has been there since the beginning of money, the commercial banking system and central banks knew ths eating down economy but they will rather continue to hike interest rate and print more nonsense paper to stabilize the failed system they created. The circle continues, print, print and mint.
Cryptocurrency may be volatile but is the volatility that important if your assets is been preserved overtime, get a portion of BTC or be prepared for inflation and stop ranting.

[nur rochid]

The higher the inflation rate, the faster cash depreciates, and investors seek defensive assets that are less susceptible to inflation.  gold, real estate or cryptocurrencies are always interested by investors, investors always want to find a safe investment with high interest rates, I am more interested in trusting cryptocurrencies because Bitcoin is  The coin is resistant to inflation, due to the limited supply of bitcoins and the ever-increasing demand.

The difference between gold, real estate and crypto is the fact that crypto could be more volatile than all of them and it is cheaper to get in. I am sure that you could buy a very small amount of gold if you want to invest into gold but you have to physically go and get it and store it in a safe place, which is all work that is not needed in the crypto world, buy some and store it digitally in a safe place all takes 1 minute.

Real estate costs a lot so it is always bad. This means it leaves us with crypto and the good ones at that, with something like bitcoin you neither need money like real estate amount, nor you would have to wait as long as you would with a gold.

among the three have their respective advantages and disadvantages, depending on which one we prefer to invest in, all three are places to fight inflation, there are also people who invest in these three assets, with the reason to be safer if bad things happen in one of the three assets. assets, so that they can support each other to provide higher returns. but indeed for now cryptocurrencies are popular, and provide many opportunities to get higher returns, because there are fewer users

[Pomogator]

I do not agree with you. The huge volatility of bitcoin will be worse than inflation, the slightest negative news is very strongly reflected in its price. If you know how to work with its volatility, then you can not lose your money on inflation. I tried to make money on bitcoin or keep my funds from inflation but sold everything on the bottoms like a hamster

[Fortify]

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.

It feels like we're currently floating along in the region between bliss after coming out of covid - where many people were able to make savings and a quick recovery after the war in Ukraine started, but it still feels like the biggest war in Europe for over 60 years has barely had any effect. We're back at pre-pandemic levels after a sharp dip back at the end of February, it feels a bit surreal but with inflation and a whole bunch of other factors, the stock market should be heading down rather than up. There is still a huge bubble of excess money in stocks and property that is still inflating, but that might start to change in the coming months for Europe and the USA.

[Pejoh Asu]

I believe that the inflation trend will continue to occur, this is because many countries do not have the proper controls and measures to regulate the money supply, in my country inflation is always higher than wage increases, so I have to keep looking for sources of income, and I think crypto is the best alternative to invest because of the huge profit opportunity.

[19Nov16]

The strongest country in the world economy, namely the USA, is currently experiencing inflation, but I believe that inflation can occur in any country, of course the highest inflation is developing countries and countries that are at war, in my country inflation usually occurs between 8% so we have to be wary of investing thereby reducing the impact of inflation.

[Sir Legend]

When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.

[laredo7mm]

Also, given that Bitcoin tends to rise in value over time, some invest in it specifically to avoid inflation. What we see now it a rather minor decrease of the prices, which occurred after an upward wave. So it's just a correction, and there's no need to look for a deeper meaning here, IMO.

Actually many people still see it as a pump dump scheme which is also partially true. This market is still immature and largely controlled by a few elite investors. Whales are using the same patterns to pump and dump the market over a loop of time. In fact, it is also a reason behind the attraction of bitcoin. It gives people a very short time to multiply their assets.

This correction is not normal but predictable. You will not see this in other markets and every investor is not ready to take the stress of a bear market in crypto.

[LUCKMCFLY]

I believe that the inflation trend will continue to occur, this is because many countries do not have the proper controls and measures to regulate the money supply, in my country inflation is always higher than wage increases, so I have to keep looking for sources of income, and I think crypto is the best alternative to invest because of the huge profit opportunity.

In every country with high inflation, it forces people to look for jobs to be able to guarantee a good living, but this is a way out that many or most see, also the crypto options as you say are excellent, there are job measures that demand much more, when you are lucky enough to get a job that is paid from another country doing what you know, what was prepared is much more rewarding, the bad influences when you have to do a lot, have 2 or 3 jobs and you don't scope for the basics.

CRYPTO and BTC do help in a great way to get ahead, but the best thing despite everything is investment, investment in BTC is just safer, but you have to know how to wait, and that's the bad thing, many times there is no patience nor the stomach to wait, but that is the secret, and work to stay without touching the investment, something very difficult to achieve.

[Ziskinberg]

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,

If you come into crypto thinking that its a get rich quick scheme, then you will mostly end up investing into shitcoins that will only ruin your investment and lose everything you have. But if you prioritize bitcoin, which is proven to be the most profitable investment in the market, this will hedge against inflation. The more its value appreciates, the longer you intend to hold it, the more profits you gained. That way, despite of the high rising inflation, you will never mostly feel its effect because you have bitcoin that is giving you a good ROI.

[Scripture]

When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.

That only means high inflation is inevitable, we might delay the result of it but eventually we are going to deal with those expensive things. This is why we should be ready for that and look for the best asset that pays the best interest, for now Gold and Bitcoin seems the best option, that’s why we saw huge growth of demand with regards to cryptocurrency.

[South Park]

When I was a kid (20 years ago) to buy a kilo of wheat it only took about 20 cents, but nowadays to buy a kilo of wheat it costs $1.2 or up more than 6x, inflation is a serious problem but often recurs in many countries, this is because the amount of money in circulation is too much so create inflation, besides the production cost factor is the thing that makes inflation happen quickly and production costs usually start with rising oil prices.

That only means high inflation is inevitable, we might delay the result of it but eventually we are going to deal with those expensive things. This is why we should be ready for that and look for the best asset that pays the best interest, for now Gold and Bitcoin seems the best option, that’s why we saw huge growth of demand with regards to cryptocurrency.

Inflation may be inevitable but it could be under control if hard assets were used directly to buy products and services, examples of this are bitcoin and gold, or this could be done by backing paper money with those solid assets, the issue is that if the latter option is adopted the temptation for the government to eventually abandon that system is too great as the benefits they get by doing so are enormous, but the consequences everyone else has to pay come in the form of high inflation and eventually hyperinflation follows as well.

[kaseygriffin]

The economic crisis is not a problem that has just begun, I have heard it since I was a child, and whether in the past, present, or future, I think it will repeat. People can escape financial control and freely do what they love, but on the contrary, we still have to accept the fact that the gap between the rich and poor is difficult and it is difficult to bring them together. The problem of inflation is probably more clearly felt recently when many items have increased in price and many of us out there still do not have a stable income to adapt well to life. It may be a bit harsh, but I think the purification of each economic period makes the gap between rich and poor even more obvious.

[bustabitsboy]

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.

Cryptocurrency has no collateral. If one day people stop using cryptocurrency or lose confidence in it, it will turn into an empty place. In some countries there is no specific status for cryptocurrencies. We need a unified approach to this. What is bitcoin today? Payment instrument or asset? The price of a cryptocurrency can skyrocket and fall down. Who can guarantee that my money can be saved? I don't think there are any guarantees.