How to survive hyperinflation?

[chrisadler]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Would you invest on crypto, stocks or household when the cash is not the king?

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Gold is a store of value, but this will not make me invest in gold.

https://bitcointalk.org/index.php?topic=5473902.msg63150189#msg63150189

It is better to invest in bitcoin.

I can invest real estate but I have little amount of money which will not make me not to do it. I prefer bitcoin.

[Jawhead999]

I do invest in Bitcoin and will not invest in crypto aka altcoins because it's full of scam or pump and dump, not reliable for long term prospect.

Household price is ridiculously high right now, I don't think the new generations are afford to buy household.

Stock is good when the economy in your country is good, we're currently in recovering phase, so stock can be a choice for another portfolio.

Since you're asking in Bitcointalk, don't be surprised most people will answer that.

[DeathAngel]

Bricks & mortar (property) is always a good hedge, holding property in a good area for decades will never lose you money. You’re here on a bitcoin forum though, the answer is closer than you think. Bitcoin is the inflation killer, look since 2009, nothing beats bitcoin’s performance. Buy, keep buying, never stop buying.

[Mauser]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Would you invest on crypto, stocks or household when the cash is not the king?

During high inflation periods cash is one the worst investment choices we can make. We are just going to lose value each year with the rising inflation. Investing into anything fixed rates like bonds or savings account is not going to do much better. The central bank will likely keep rising interest rates to combat and inflation, which decrease the value of our fixed payments in the future. Stocks is definitely a better idea to invest, if the business is not hit hard by inflation themselves. As long as the company can charge the customers with the higher inflation their business model is not at risk. Crypto currencies seem like one of the best solutions, because they are independent of your country and the value should not be affected by your local inflation. This all depends on how much money you can save and if you might need it short term. In case you can't invest longterm you could also consider switch some money into USD, like many people in Argentina are doing to escape their struggling high inflation.

[Don Pedro Dinero]

For starters, I'm sure the OP doesn't know what hyperinflation is, just as most people don't know what hyperinflation is. People think high inflation is hyperinflation, and it's not. Not even Argentina, which has 120% inflation this year is suffering from hyperinflation. Let's see:

What Is Hyperinflation? Causes, Effects, Examples, and How to Prepare

While inflation measures the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.

Investopedia gives a more traditional way of preparing for inflation:

It's critical to remember that hyperinflation doesn't happen very often, especially in developed countries where a central bank focuses on reigning in and controlling inflationary periods. However, there are some actions you can take to reduce the effects normal or high inflation have on your portfolio.

A balanced and diversified portfolio can help you reduce losses through inflationary periods. Commodities and real estate can reduce the adverse effects of inflation because they tend to increase in value during these times. Treasury Inflation-Protected Securities (TIPS) can hedge against rising inflation because the principal you have invested in a TIPS adjusts with inflation.

Mutual funds and exchange-traded funds that practice inflation swaps can also be used to combat the effects of inflation on your portfolio.

To this we should add while we are on this forum, and as mentioned, bitcoin.

[electronicash]

inflation is still not done. price will still be going up. and the only we could do is to earn more by having multiple jobs these days. minimizing spending and just buying the basic necessities. no overspending on fine dining and champagne. if you have a truck still that burns 1 liter per 12 kilometers, don't use that car anymore or sell this car and buy a mini car that burns 1 liter per 18 kilometers.  

in my country, the central bank encourages cashless payment already. cash is no king anymore. so invest in crypto. there is no better way to make money and solve your own financial crisis than by earning this coming bull run. you won't miss this out if you have DCA BTC and at least buy some top tokens.  

[hugeblack]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Would you invest on crypto, stocks or household when the cash is not the king?

Hyperinflation may result from several economic factors, and trying to find a single solution to all inflation problems in all countries will be impossible, although some investment solutions such as purchasing Bitcoin and gold may contribute to reducing the negative effects of inflation.
If you are in a country suffering from explosive inflation, look for the reasons. If it is the government’s mismanagement of cash or budget imbalances, it is better to try to withdraw your money from the banks, otherwise restrictions may be imposed on that.
If the reason is energy prices, then investing in sectors such as solar energy is better than buying Bitcoin, and so on according to your circumstances. The only constant is not keeping the local currency.

[btc78]

with my current economical status, bitcoin is the only one i can afford to invest to

i would love to have to invest in all three someday but for now with the little money that i have, i’m satisfied to have put it in bitcoin maybe in the future i’ll have more btc but for now i only bought what i can

[kingvirtus09]

Gold is a store of value, but this will not make me invest in gold.

https://bitcointalk.org/index.php?topic=5473902.msg63150189#msg63150189

It is better to invest in bitcoin.

I can invest real estate but I have little amount of money which will not make me not to do it. I prefer bitcoin.

But when there was no Bitcoin, what were the options that others were doing to survive hyperinflation? Isn't investing in gold, silver, and real estate one of them? And they have intrinsic value.

Spend less money than we earn. We should also have multiple sources of income, not just Bitcoin or cryptocurrency, where we are living at the moment. As long as we do everything we can to benefit from it, we can have income in different ways.

[Queentoshi]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Before investment, you have to be able to reduce expenses so you can have enough to put into investment. You have to cut budget and let go of more pleasures and luxury, spend more on more assets and lesser liabilities. Financial intelligence and strong discipline are key factors to make it through inflation, you have to be strategic wan wiser with spending.

Would you invest on crypto, stocks or household when the cash is not the king?

To invest in bitcoins will be my choice because I have a good understanding of the advantages it has against inflation.

[kentrolla]

Since the time I have learnt about inflation and how money or gold cannot help you to cope up with inflation I have diversified my investment into stocks, crypto, real estate and a small portion into Gold. It was a commonly misconception that Gold will help us to cope up with inflation but it fails and bank interest rates for FD are no different. It's better to invest into real estate if you are not familiar or not comfortable with Crypto or stocks. But I have high hopes on stocks and crypto but I am very active in crypto to shuffle my investments to get more out of it wherein stocks are into auto pilot mode and you just need a genuine broker to manage your portfolio.

[Marvelman]

I think spreading your money around is smart.  Don't keep it all in one place! Look into stuff like crypto, stocks, real estate, or gold/silver.  Just make sure to research a lot before investing since markets change.  There's no magic bullet but having different kinds of assets could help soften the blow if hyperinflation hits.  It's like putting your eggs in different baskets instead of just one and  of course things could still go south but diversifying gives you better chances if inflation goes wild.

[ZAINmalik75]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Would you invest on crypto, stocks or household when the cash is not the king?

In hyperinflation, it becomes difficult to save funds, but if you somehow get the chance to make some savings, then saving them in the form of local currency would not be wise because the value of your local currency is already eroding. Why would you keep that money?

Converting that money into dollars, or BTC, would be the best way to fight against hyper- or super-inflation. Because BTC is a hedge against inflation, we can't even say gold is a hedge against inflation because the price difference between BTC and gold can be compared, and the result can be that BTC is a winner in terms of hedge against inflation.

Investing in stock or a household is also a good option, but investing in stock is better than investing in a household because the value of those households will remain the same if they are used in your local place where the currency is inflated, but they will become half the price of the item you buy.

[Youngkhngdiddy]

In hyperinflation, it becomes difficult to save funds, but if you somehow get the chance to make some savings, then saving them in the form of local currency would not be wise because the value of your local currency is already eroding. Why would you keep that money?

Converting that money into dollars, or BTC, would be the best way to fight against hyper- or super-inflation. Because BTC is a hedge against inflation, we can't even say gold is a hedge against inflation because the price difference between BTC and gold can be compared, and the result can be that BTC is a winner in terms of hedge against inflation.

Investing in stock or a household is also a good option, but investing in stock is better than investing in a household because the value of those households will remain the same if they are used in your local place where the currency is inflated, but they will become half the price of the item you buy.

   Hyperinflation is a period of extremely rapid and uncontrolled inflation, typically defined as an annual rate of inflation of more than 50%. This can lead to a severe erosion of the value of money, as prices for goods and services rise rapidly and the purchasing power of the currency falls. If there is hyperinflation, you have to get rid of the hyperinflating currency as fast as possible. Besides buying food and other essentials investing in not inflating foreign currencies or hard assets like real estate, commodities, not speculative equities and precious metals were ways to protect people from losing purchasing power rapidly.
     if you honestly believe hyperinflation is about to occur, borrow as much money as you can and convert into easily sold portable assets such as precious metals, investment grade diamonds, cryptocurrency. If the country you are concerned about isn’t a major economic power, then a different foreign currency or real estate are also a reasonable choices.

[Gaza13]

Of course, before that happens, we have to prepare ourselves to protect our money so that it is not eroded by inflation. we switch to buying assets that tend to be more stable, which are better known, namely gold, of course hyperinflation where conditions are much worse than inflation, Before that happens, we should get used to living frugally according to our capacity and try to create new additional income. This method means we don't have to rely on just one income.

[Silberman]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Would you invest on crypto, stocks or household when the cash is not the king?

The way to do so has always been to exchange your fiat for assets which are considered to be a store of value, now you have to do this before hyperinflation even strikes because if you do so once it has appeared then you will lose a great deal of your wealth anyway, and this can be done by investing your money in precious metals, real estate or bitcoin, however you do not be afraid to try other more unorthodox solutions, as if you could for example produce your own food on your land then you can reduce the impact that hyperinflation has on you as well.

[uneng]

Bitcoin investment is one of the best alternatives against hyperinflation in order to protect your money against devaluation. If you keep buying BTC in small portions every month with part of your wage, you will see consistent gains on long term when compared to other people from your country who are also facing hyperinflation, but don't invest in Bitcoin and only hold fiat on their banking accounts.

Besides Bitcoin, you can also invest in properties, but then it will demand a larger portfolio from you, what isn't the case of most investors who have only some spare money to invest every month.

[gunhell16]

For instance, if I had Bitcoin or another cryptocurrency and I'm facing hyperinflation, I'll prefer that over real estate without a doubt. I'll then only purchase necessities.

After that, if I own land or real estate, I will plant fruits and veggies so that I will always have food on hand and won't have to spend money on produce when these circumstances arise. I have a plant in my yard where I can store food for my house as well, so I won't need to spend money on these items alone.

[jossiel]

How do you strategically navigate hyperinflation to safeguard your financial well-being?

Fortunately, I haven't been in a country where I live that has hyperinflation but if ever that I'll deal with it. The typical arrangements that I have been doing to cope up with the usual inflation is what I'll just do the same thing.

Would you invest on crypto, stocks or household when the cash is not the king?

Cash is still king by that time IMO, usually with the assets that we have, sometimes that they're hard to liquidate and that's why I'll still keep some but obviously.

Aside from crypto, I'd avoid stocks and government bonds and if possible that my money is enough then I'll go ahead with the real estate and some golds and jewelries.