How long can Bitcoin out perform inflation in the long run?

[Kakmakr]

So I was thinking....

A lot of people are hoarding their bitcoins and waiting for a spike in the price, so that they can sell for a huge profit. Let's say for argument sake that real inflation is 10% per year.... and you are not selling any coins. (I say "real" inflation ...because we know the inflation provided by governments are manipulated... and much lower than the actual inflation or living cost)

Every year that you are not selling any bitcoins (as a commodity) ...the inflation that you have to beat with this investment... accumulates.

Example : Year 1 = 10% / Year 2 = 20% / Year 3 = 30% .......and so on. You are also not gaining any interest on any of those coins... so they are dormant during the hoarding period. (When you eventually sell them, you have to divide the profit into the years that you hoarded it to see if you beat inflation)

What strategy do you use to beat inflation with your Bitcoin investment? (I am saying investment... because a lot of people use Bitcoin as a commodity and not as a currency)

How long are you willing to wait, before Bitcoin are not an inflation beating investment anymore? 

[1715329091]

1715329091

[Despairo]

Every four years seems to be the best way if you want to sell at the highest, don't sell your coins every year because Bitcoin isn't in bull run season.

For me, I have not yet sell my coins. I only sell small amount in order to buy foods, pay bills, household, electricity etc. The rest of my coins, I continue to hold until I don't know when I sell because I'm not really focus to increase my coins by selling my coins, I'm focus to develop my skill to get paid higher and continue DCA-ing.

[sesterceshop]

This is why I DCA. It minimizes the risk of making a single large purchase at a peak price. I also invest in some DeFi platforms that offer yield on my Bitcoin to help offset inflation. And the duration you're willing to wait will depend on personal risk tolerance, the market trends, and economic conditions. I'll just HODL until I reach my target price.

[Faisal2202]

I think in the context of inflation Bitcoin at least beat Fiat and we should not compare it. Even though you have started this topic then I would love to add some factors which make BTC a deflationary one for the longer period of time.

1. Limited supply of Bitcoin makes it more scarce then any fiat. There is only 21 million BTC while if we talk about fiat the numbers are increasing day by day.
2. Bitcoin is definitely a Deflationary coin because if we see at an average rate in every year price of BTC outperform Inflation. Means let's say you have $100 in your holding back from 1 January 2013. Will that $100 be having the same value as of today $100 but If you have invested that dollars in BTC then the value of your $100 will be 7.41BTC*current price. You do the calculation.
3. Point being made in the point 2 is until the price of BTC is outperforming the inflation rate till then. And how long that be. Well till 2140 year BTC will outperform Inflation because that's the last year when there will be no mining as BTC will be mined totally and if the downfall will start then it might start from there.

I am not a financial dude who knows or making the downfall assumption based on some facts but on the bases of mere knowledge I have.

[Bureau]

Every four years seems to be the best way if you want to sell at the highest, don't sell your coins every year because Bitcoin isn't in bull run season.

For me, I have not yet sell my coins. I only sell small amount in order to buy foods, pay bills, household, electricity etc. The rest of my coins, I continue to hold until I don't know when I sell because I'm not really focus to increase my coins by selling my coins, I'm focus to develop my skill to get paid higher and continue DCA-ing.

Taking periodic profits will always lock on the gain and might outpace inflation.  I would say take an average of 5 to 10 years than 4 years. Major gains in Bitcoin have been realized in those periods if you check the history. There are many here who believe in indefinite hold and by doing that they are missing opportunities that Bitcoin is giving them. If I had a few stashes of Bitcoin, I would have booked some profit when Bitcoin last hit an ATH.

[Silberman]

So I was thinking....

A lot of people are hoarding their bitcoins and waiting for a spike in the price, so that they can sell for a huge profit. Let's say for argument sake that real inflation is 10% per year.... and you are not selling any coins. (I say "real" inflation ...because we know the inflation provided by governments are manipulated... and much lower than the actual inflation or living cost)

Every year that you are not selling any bitcoins (as a commodity) ...the inflation that you have to beat with this investment... accumulates.

Example : Year 1 = 10% / Year 2 = 20% / Year 3 = 30% .......and so on. You are also not gaining any interest on any of those coins... so they are dormant during the hoarding period. (When you eventually sell them, you have to divide the profit into the years that you hoarded it to see if you beat inflation)

What strategy do you use to beat inflation with your Bitcoin investment? (I am saying investment... because a lot of people use Bitcoin as a commodity and not as a currency)

How long are you willing to wait, before Bitcoin are not an inflation beating investment anymore?  

Right now there is no need to employ any fancy strategies, as long as you can buy bitcoin when its price is far away from its ATH then you should make profits on the upcoming years even with a high inflation playing against you, and even if someone bought at the ATH they could still make money by just holding, as an inflation of 10% which is compounded each year needs for that person to sell for 101k to suffer no loss, and such a price should be reachable during the next ATH, and if they employ a DCA strategy then their profits should be even higher.

[Stella Mese]

Investing in BTC, of ​​course, requires unlimited patience, and of course you have to use idle money to make purchases on BTC, and of course the DCA system that must be used when buying BTC, but to be honest, I personally also can't wait to be in the bull market quickly. and want to enjoy the benefits but of course we have to be patient and fight and of course to achieve success most of us have to be strong in being patient.

[ImThour]

I mean it's a personal choice on how long someone wants to wait. I personally wanna see a target of $170k or something, as I made a post earlier. At that point, I will surely be happy to sell it for some profit and keep cash and enjoy some of it with my family and friends. Selling all your bought Bitcoins at price as of today is being a fool. And when there occurs a bear market, you simply buy again for cheap. And you can always keep working on your DCA Strategy.

[ranochigo]

Bitcoin is an inflationary currency, and it is always going to be a inflationary asset if you consider Bitcoin alone up until mining stops. In theory, assuming ceteris paribus, if you peg Bitcoin to a fiat which has a higher inflation, you are going to have Bitcoin always appreciating against fiat; fiat becomes less valuable and Bitcoin becomes more valuable.

However, that is contingent on the fact that Bitcoin is not currently overpriced. Based on recent and historical price fluctuation, Bitcoin is overpriced at most of the point in time. Hence, I'm not very much confident on Bitcoin always outperforming inflation or performing better than other investment vehicles for that matter.

[Zaguru12]

Taking periodic profits will always lock on the gain and might outpace inflation.  I would say take an average of 5 to 10 years than 4 years. Major gains in Bitcoin have been realized in those periods if you check the history. There are many here who believe in indefinite hold and by doing that they are missing opportunities that Bitcoin is giving them. If I had a few stashes of Bitcoin, I would have booked some profit when Bitcoin last hit an ATH.

If you look at bitcoin prices, there is no certainty that it will be at a price good enough for sale during does period, Although the market is always pumped or at bull whenever an halving period occurs. But due to some economic factors this price falls back down again. Imagine bitcoin at the a price of $69k in 2021 and then falling back to close $15k one year later (late 2022), now imagine if you had set you have set your taking profit time to that year, you will have taken a profit but not as high as you could have.

So in my opinion it will be better to set taking profits target on price rather than year. For example put it that you will take half profit after the price might have done something like 3x your initial capital invested. This way you can at least take all or some of the profit and then accumulate more when the price comes down again.

[Sim_card]

Bitcoin is a store of value and no matter how inflation rises the assets in bitcoin will be overcome inflation. I prefer hodling my bitcoin till the bull run for every circle so that I can sell and have profit,that is when the price of bitcoin during the bull run has reached my target selling price. And if during the bull run,bitcoin didn't reach my target selling price,I will keep hodli till the next bull run. I believe with this method one will be able to beat inflation with his investment. While hodli one still needs to use DCA method when necessary to take advantage of the market.

[Poker Player]

Every year that you are not selling any bitcoins (as a commodity) ...the inflation that you have to beat with this investment... accumulates.

Example : Year 1 = 10% / Year 2 = 20% / Year 3 = 30% .......and so on. You are also not gaining any interest on any of those coins... so they are dormant during the hoarding period. (When you eventually sell them, you have to divide the profit into the years that you hoarded it to see if you beat inflation)

What strategy do you use to beat inflation with your Bitcoin investment?  

I think you make it too complicated. Taking out volatility, i.e. for example years when inflation is 5% and the price of bitcoin drops by 50%, if we look at the long term, as long as you hold your bitcoin for at least one cycle, you will be beating inflation. Whether you make profits by spending your bitcoin or exchanging it for fiat or not, it doesn't matter. If you still hold it without selling or spending it, you have an asset whose purchasing power has more than beaten inflation for the period you have held it.

[Charles-Tim]

What strategy do you use to beat inflation with your Bitcoin investment?

I do not know if this will continue, but there are bad years for bitcoin and there are good years. After halving, the first two years are years to make money from bitcoin, the following year is not good, while the last year to halving is good but not that good. During the third year after halving after bitcoin as fallen significantly, you can buy and hold it or start DCA.

Another thing is that if you are not selling for a very long time, you can buy and hold. Even if the price fall, a year is coming that you will gain. In long term, bitcoin is a store of value. If you did not sell but see losses as unrealized, you will later be happy after bitcoin got to the price you bought it and increase above the price.

[Aanuoluwatofunmi]

So I was thinking....

A lot of people are hoarding their bitcoins and waiting for a spike in the price, so that they can sell for a huge profit. Let's say for argument sake that real inflation is 10% per year.... and you are not selling any coins. (I say "real" inflation ...because we know the inflation provided by governments are manipulated... and much lower than the actual inflation or living cost)

Every year that you are not selling any bitcoins (as a commodity) ...the inflation that you have to beat with this investment... accumulates.

As long as you're investing in bitcoin, you will always make even whenever you invested because you will not be affected by inflation, bitcoin has its own way it has mastery over inflation because as you've said already, inflation is as a result of government manipulations while bitcoin is a decentralized network which means there's no evidence of any manipulations, furthermore, when you invested in bitcoin and hold, the worth value of your investment increases with time while if with fiat it decrease because of inflation.

[Lorence.xD]

Every four years seems to be the best way if you want to sell at the highest, don't sell your coins every year because Bitcoin isn't in bull run season.

For me, I have not yet sell my coins. I only sell small amount in order to buy foods, pay bills, household, electricity etc. The rest of my coins, I continue to hold until I don't know when I sell because I'm not really focus to increase my coins by selling my coins, I'm focus to develop my skill to get paid higher and continue DCA-ing.

I actually do the same, I don't get some people would literally sell their houses or their property just to own Bitcoin, worse is they would take a loan when they can do slow investment or called DCA. I have a job and when I have extra money I put it at investment in Bitcoin, whenever I really needed money due to I need to provide the needs of my family not only that you've mentioned because I'm not living alone so doing groceries would literally for my income alone. That's the time I sell some of my Bitcoin which I find helpful cause not only that it could help you for your everyday needs but also for your future as well. So keep hodling brothers, just don't focus on the future if you have problems and issues currently there's no bad thing to sell some of your coins.

[panganib999]

Is bitcoin inflationary as with Fiat? No? Then it will continuously outclass any form of inflationary asset over time.

That's one of its main selling points after all, to remain valuable and a great store of value as the whole economic world plunges into chaos thanks to inflation and devaluation of assets. Don't get me wrong, bitcoin can still be beaten by devaluation, which will only happen if the whole cryptocurrency world swipes all their assets off the industry and into another. But not only is that a massive if. So yeah. bitcoin should be good for a while, it will continue to remain more valuable than your favorite fiat as it succumbs to depreciation brought about by inflation, only way it could be on par with bitcoin is if it adapts the same deflationary nature that bitcoin boasts of, which is not good for commercial assets like greenbacks.

[moneystery]

if you look at the current global inflation, the increase in inflation is relatively smaller than the increase in the price of Bitcoin, meaning that when you put your money in Bitcoin and hold it in the long term it is still safe.

even though the price of Bitcoin has tended to decline lately, if we draw a pattern from 2019 to 2023 it has increased by around 600%, but if it is pulled from 2022 to 2023 the price of Bitcoin has decreased by 50%. it can be seen that holding Bitcoin in the long term can be more profitable than holding it in a yearly period, because Bitcoin's cycle is 4 years and it also proves that Bitcoin price increases can outperform inflation in the long term.

[Franctoshi]

Every four years seems to be the best way if you want to sell at the highest, don't sell your coins every year because Bitcoin isn't in bull run season.

For me, I have not yet sell my coins. I only sell small amount in order to buy foods, pay bills, household, electricity etc. The rest of my coins, I continue to hold until I don't know when I sell because I'm not really focus to increase my coins by selling my coins, I'm focus to develop my skill to get paid higher and continue DCA-ing.

I'm in line with your point, HodLing for 4 years and above simply and correctly answers this question about beating the Inflation rate. The reason is that while inflation increases with time when it comes to fiat currency because of money printing , Bitcoin's inflation rate is cut in half every four years, that is supply rate is reduced plus and minus volatility rate (bear /bull market) between those years.

[Ucy]

It's OK owning and storing Bitcoin long-term to benefit from its price increase, as it was created to be Store of Value and serve as a hedge against inflation. So it's clearly serving that role as long as price keeps increasing.
 What people need to know is the right time to invest or buy to reap the maximum benefit. And the right time to buy, to be sure of a bountiful harvest in the future is when the price is low or when it looks like Bitcoin is underpriced/undervalued or cheap.. . basically when you notice massive dip in price, it's safer to buy there than when price is high.
So, if you wish to beat the inflation, by let say, selling your $100,000 for Bitcoin, the best practice is to split the money into multiple pieces... maybe into four pieces, which will be 25,000 each. Use each piece (25,000) to buy the major dip in price rather than putting everything into Bitcoin at once... worst still is buying at high price with the 100,000... It's like planting at the end of raining season rather than at the end of dry season which is the beginning of raining season.

[bittraffic]

It will outperform inflation until inflation ends and BTC still has a good price for a long-term holder. But this will vary depending on the holder though so it all depends on the individual who holds BTC.

If he thinks selling BTC now is better since it will; drop to $16000 in the coming months then it's his choice. He beats inflation and at the same time, he can accumulate BTC if indeed the price takes a dive.