INFLATION, A MOTIVATION TO INVEST IN CRYPTOFASHIONS

[Wimex]

   I always wondered if inflation, in addition to all the bad things it brings to society, has some benefit that could be useful  for each of the people who are harmed by this type of case, and the truth is that it seems incredible to me that It comes only to cause anguish and destabilization. Or do you think it has some benefit? Because it seems to me that there is nothing good about this event attacking countries and the worst thing is that it is inevitable, everyone is or will be going through inflation, The only thing I see as good about it is that it forces people to look, for alternatives that could be useful and more profitable when it comes to future stability.

   Lately, these second options that I refer to deal with innovation focused on cryptocurrencies. Many businessmen are aware of this and apply it in their respective territories. To give an example, we have Spain, in a news story I read about this country in an article written in Spanish, is highlighted the increase in inflation and the interest that many retail investors have shown in focusing on the area of ​​​​technology and virtual currencies to cope with what is happening. This is what Laidler, a global markets strategist, comments on, providing his opinion on the situation that Spain is experiencing and the measures that retail investors have been taking, according to him:

Crypto is now the second most popular asset class after stocks for retail investors, with 34% of retail investors owning crypto and making it an asset class dominated solely by retailers. It is easily the best-performing asset of 2024 so far, driven by a fundamental contraction in supply and demand, with strong demand for new Bitcoin spot ETFs, and with just under 30 days left until the halving.

For me it is a strategic decision, because in any case it is expected that at some point what will dominate is this type of asset and the one that will improve the quality of life of many.


SOURSE: https://es.cointelegraph.com/news/spanish-inflation-increased-and-investor-interest-is-in-the-technology-sector

[pooya87]

We can always find some sort of silver lining out of any bad situation, but that doesn't mean they have any "benefit". Inflation is not an exception.

Crypto is now the second most popular asset class after stocks for retail investors

Statements like this are scary to me because they say "crypto" which means basically altcoins aka useless things that only get pumped and dumped. In short the altcoin market is a much worse version of the penny stocks market. "Assets" that get pumped a lot but they have no utility and can be created without any kind of cap or rules.
You can register your parents' garage as a company and sell penny stocks and make a profit just like you can create shitcoin after shitcoin out of the basement!

I wouldn't call this "innovation" or a "benefit", this is actually terrible because a large amount of money is going into a "casino" called the altcoin market where people make bets on random junk to get lucky and make some money.
This would have been benefit if people were looking for something that has actually had some innovation. That decreases the number in the list of altcoins from tens of thousands into one or two choices.

[CODE200]

I don't think it's a motivation but rather a fear that the money that they've got will go down in value which ends up with them having less power to buy stuff that they can get, I think that it's the obvious thing that you can do when you're investing and your country is experiencing inflation, you got to make sure that you're going to maximize your investment by putting a lot of money into that investment so you can save as much money that you as you can against inflation. It's sad that there's nothing we can do about this as an individual that would affect the inflation in a positive way, I guess it's a matter of politics and how the society that you're in when it comes to inflation.

[DeathAngel]

Inflation is a stealth tax, an annual theft of your purchasing power. Governments don’t care about you so the sooner you accept that the better. It is up to us to protect our money from these lizards. Bitcoin is an inflation slayer & if self custodied, only you control your funds. Don’t wait until it’s too late.

[btc78]

If I were given a chance to choose between not suffering at all trying to find an alternative livelihood just to survive or being stable all the while but still having the same need to look for possible second options, I would choose the latter.

I don’t think it’s a benefit that a lot of people were forced to go different ways trying to find a new job. Maybe for some ‘low employees’ inflation is a bad thing but not really the rich ones only having the capacity to create and improve their lives

[Volimack]

As far as I'm concerned stable currencies are bad for inflation investing in them will have a bad effect on them with inflation. The government blames the increase in the prices of various things with the rise in inflation but sees no link between crypto and inflation. Although inflation puts pressure on fiat currency, it has no control over liquidity investment. Crypto is one of the tools to protect ourselves as a second alternative.

[Maus0728]

That's such a shallow reason to invest in crypto if you ask me but that's just me, I see crypto as our next step to financial freedom, at least for some individuals and inflation is such a thing that you should be worried at least at the bare minimum since you're mostly invested into crypto anyway. I do like the idea though that this is a motivation for some people to invest in a lot of cryptocurrency, with how rapidly the value of fiat is going down, it's no surprise that you don't want your money to be less valuable than it should be, we really need to find a way to start solving this issue with inflation if you ask me but in the meantime, do what you can to protect yourself from it.

[livingfree]

No one benefits from the inflation but only those oligarchs that are always in favor of the increase of inflation yearly. Even with the slightest increase for their raw materials or products or services, they'd apply it as part of their measures to go along with inflation.

But are we going to benefit from it? Never.

It's just a line upwards and we'll never see a decrease in inflation. There will be some slow down but they'll never stop from increasing over time.

[Kemarit]

I think Bitcoin has proven itself during the pandemic, safe haven, a hedge for our wealth. So there's no need to be motivate oneself to invest in crypto. As long as you know what you are doing, and that you have a goal, i.e. preserved wealth, there is no better time than right now.

But the thing is that there are investors who might have the wrong mindset in the beginning, when they thought that BTC is a get rich scheme. And then they invest on meme coins and shit coins thinking that is it the easiest way to make more money which is not.

[Dave1]

I don't think it's a motivation but rather a fear that the money that they've got will go down in value which ends up with them having less power to buy stuff that they can get, I think that it's the obvious thing that you can do when you're investing and your country is experiencing inflation, you got to make sure that you're going to maximize your investment by putting a lot of money into that investment so you can save as much money that you as you can against inflation. It's sad that there's nothing we can do about this as an individual that would affect the inflation in a positive way, I guess it's a matter of politics and how the society that you're in when it comes to inflation.

I agree and so there should be no motivation for us even if there is inflation. It's more of working our money to make more money attitude. So just imagine if you just let it sit on a bank for years. It will not even double or triple and your money is not going to worth something because of inflation.

But with crypto, or better yet Bitcoin, it's a good investment vehicle. And I think average joe knows that, and it could be the main reason, why crypto is slowly become one of the best assets to invest as there are more people realizing it's potential to give them more financial freedom in the future.

[Coyster]

For me it is a strategic decision, because in any case it is expected that at some point what will dominate is this type of asset and the one that will improve the quality of life of many.

Shitcoins and scam coins cannot improve the quality of life, because they have no utility to offer, i mean something that people actually want to use for particular purposes, they are basically trading instruments that people use to gamble in the hope of making money. Having said that, even if you are looking for a crypto to use as hedge against inflation, it has to be Bitcoin that has an actual utility and not the many pump and dump coins that are in the market.

[enhu]

While Laidler encourages retail investors to start buying crypto he is pointing out the AI assets on stocks.

With inflation all over, no one is benefiting from all this but clearly, the gap between haves and have-nots is getting wider and this is the manifestation of the wealth distribution in the society where the middle class is almost over. What would be left are just rich and poor.

[Die_empty]

  I always wondered if inflation, in addition to all the bad things it brings to society, has some benefit that could be useful  for each of the people who are harmed by this type of case, and the truth is that it seems incredible to me that It comes only to cause anguish and destabilization. Or do you think it has some benefit? Because it seems to me that there is nothing good about this event attacking countries and the worst thing is that it is inevitable, everyone is or will be going through inflation, The only thing I see as good about it is that it forces people to look, for alternatives that could be useful and more profitable when it comes to future stability.

I can't identify any advantage of inflation because it reduces purchasing power and destroys savings. Seeking alternative sources of income is a burden and has some negative effects. It could lead to overworking, health and family problems. I would prefer to work a few hours and earn enough money to take care of my family and also have enough time to spend with my loved ones and do other activities.

  Lately, these second options that I refer to deal with innovation focused on cryptocurrencies. Many businessmen are aware of this and apply it in their respective territories. To give an example, we have Spain, in a news story I read about this country an article written in Spanish, is highlighted the increase in inflation and the interest that many retail investors have shown in focusing on the area of ​​​​technology and virtual currencies to cope with what is happening. This is what Laidler, a global markets strategist, comments on, providing his opinion on the situation that Spain is experiencing and the measures that retail investors have been taking, according to him:

It is common for people to invest in popular ventures which promise high returns. The most discussed investments currently are cryptocurrencies and artificial intelligence. People who don't know these sectors are even investing heavily so it is not a surprise to know that many people in Spain are investing in these sectors. I don't know much about altcoins or the AI field but I am sure that Bitcoin is a good inflation hedge.

[rodskee]

That's such a shallow reason to invest in crypto if you ask me but that's just me, I see crypto as our next step to financial freedom,

additionally, crypto is not a temporary method
to get rich it is more than that it is our future

it is the next step to advancing and innovating
technology in our world in the next few decades
crypto will be used massively so it is better that we
get used to it now than later

[|MINER|]

Inflation can never be a good thing.  It is a curse for a country.  If inflation prevails in a country, no matter how much people invest, their standard of living is very poor.  Inflation can never be a blessing to any country or nation.  Fearing inflation, many people are investing money in Bitcoin. Is there any profit in it?  They have to struggle with that money to coordinate their daily life.  Inflation can never be good it is a curse for the people of a country.

[Alone055]

I don't know if we can call it a benefit or not. Still, some businessmen, mostly in retail, tend to make more money when there is a sudden increase in the prices of goods in case they already have bought stocked a lot of those stuff in the past and since they have paid for them earlier, it wouldn't cost them any extra. Still, as the prices have increased due to inflation, they can sell them for a higher price giving them a higher profit margin.

Though I'm not sure if this works in every business, based on my knowledge, people who own stores where they sell groceries and stuff do get this benefit when there is high inflation. Some people in some countries would even keep some items hidden if that isn't easily available in the market so that they can sell them at a higher price after a few days. It's unethical, of course, but they barely care about that. 

[Husires]

Inflation is beneficial, as it stimulates the economy to grow, and it is what makes there a profit margin and an incentive for investment. If prices were fixed throughout the year, innovation and competition would be less, but inflation must be reasonable and controlled. Inflation of 1% to 2% is beneficial for the economy, but when it comes to talking about inflation, the majority They mean explosive inflation, where prices increase daily and inflation is more than 10% or more.
Hyperinflation is bad for the economy and leads to adverse results, especially for the middle and poor classes.

[Hamza2424]

<snip>

It is just like a scary dream if one is totally thinking of depending on the crypto space as most of them are just investing in the altcoin which works on pumping and dumping schemes. Bitcoin has always been the king of all cryptocurrency and today it is the kind of all digital currencies trading in the market. Although it is good to take risks with very little amount of investing in altcoin but higher priority should always be Bitcoin and I know we all facing the bad era of inflation where we all are looking for the golden opportunity to fulfill our daily, monthly bases need.

Although it is very rare to find this kind of opportunity in this era but the era of online makes it much easier for one to make money like one can make money from YouTube, Blogging Websites, and Freelancing, by launching one store on eBay, or Amazon. These platforms really can make one person wealthy and financially free so one should focus on getting multi-skills in different fields all required is our focus and we should leave or laziness behid and keep learing the skill all the time.

[dothebeats]

Let's face it, the main driver is actually making huge money in such a short span of time. Only a few people might even think of using cryptocurrencies as a hedge against inflation as most are focused on the profits in fiat. Even I know that I'm doing this for the profit, as it's way easier to acquire, store, manage, and sell when I get my desired price. Those who think that it's a hedge against inflation are people who have lots of money and assets to keep, and that is, IMO, a realistic motivation for them to hold bitcoins and cryptocurrencies.

[SilverCryptoBullet]

We can always find some sort of silver lining out of any bad situation, but that doesn't mean they have any "benefit". Inflation is not an exception.

We need to pick a good asset for our investment. No inflation in that asset, we have Bitcoin with only 21 million bitcoins and it is inflationary but we know there is a limit at 21 millions, not more.

The value of Bitcoin comes from many things, its limited supply, its use cases and adoption. Its value can be supported by loss, decrease of purchasing power of US. dollar and other fiat currencies.

I don't expect to see Bitcoin hits $1M next month or next year, because it will only happen if something really bad like nightmare happens with US. dollar, global economies.

I believe in Bitcoin but only hope to see its value increases naturally with time, not hit $1M after one night because if it happens after one night, there will be a terrible black swan event globally.

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