Small losses in investments vs. inflation.

[Dr.Bitcoin_Strange]

People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market.

And what if the negative change in the price of the asset you invested on is not just a temporary one but one that is going to be permanent? I understand what you are implying on this topic but some facts are missing. We have different personality in terms of investment, there are investors who doesn't have up to 50% knowledge or idea of what they are investing on, probably, one of their colleague at the office mentioned it and they just jump right on it without knowing much about that investment. Should you not expect such investor to express fear and doubt when the price of the asset they invested on starts going down?

What we must understand is that, every investor's reaction and decisions is not always the same when the price of assets are going down. It will interest you to know that as the price of Bitcoin is going down, there are investors selling becomes out of fear and there are also investors that are buying.

What makes some investor to panic because of price fall is either, the person is just a short term investor, or the person doesn't have enough knowledge about the asset, so they are scared that there money will be lost for ever.  And as for the first question I asked, there are assets that are very risky, when the price falls, it might be permanent and never recovers again, so if someone invest in such asset, do you expect them not to panic when the price is dumping instead of pumping the way they expected? (Rhetorical question).

[henmark]

Small losses in investments vs. inflation.

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

When you invest money in assets and the next day you see that your asset has fallen in price, you are actually losing money. But when your money is simply devalued by inflation, you are not losing money in nominal terms, you are losing the purchasing power of your money.

Another important point: with an unsuccessful investment, you lose money, while your neighbor, for example, does not lose money but, on the contrary, makes a profit because he invested in another asset. This makes the situation even more unpleasant.
However, with inflation, the purchasing power of money decreases for everyone equally. Do you feel the difference? Everyone is on an equal footing. Everyone suffers from inflation equally. It’s not as hurtful as a failed investment (no one wants to feel like a fool).

While that is true, investments can grow, where is keeping your money same doesn't have that option. So lets assume that one option is you buy stocks, and it could go down, meaning that you are not losing just purchasing power, the amount is literally going down as well, but you have the possibility that you could beat inflation.

The other option is that you put it on 2-3% savings, making basically absolutely nothing at all, because inflation eats at it, so every year, your amount looks like it is growing, never goes down, but you lose purchasing power and have absolutely no chance of being better. Which one would you prefer? I prefer the one where I have a chance to not lose purchasing power, because otherwise what is the point?

[danherbias07]

I agree.

I think I realized this when my wife told me how valuable all her gold is today. She is right. It's like all the gold that she accumulated has doubled in value. Even the pawned ones have a higher value now which is why I am eager to get it back as fast as possible so that we can keep it and we can buy more.
I am the one who do the market shopping for our daily consumption of food, and I know how expensive things are today than it was years ago. It's a bad economy, and I think many countries are experiencing it. If one is not invested in something valuable, it can be big trouble in the future. Gold and Bitcoin- that's our target.

[Qhunman]

When you put money in the bank and you start losing it to inflation, you won’t actually know or notice but when you invest and you are losing money, it is very easy for you to notice that you are losing.

Losing money to inflation is not actually that big as to losing money to an investment, you may put your money in the bank and actually don’t lose it to inflection. Inflation don’t happen regularly in a country, it happens regularly when there is a bad  government so when there is a good government, inflation actually don’t happen that much and your money in your bank will be safe.

Even with all these, I still believe, keeping your money in the bank is a waste, instead of keeping your money in the bank invest it, except the money in the bank is your emergency funds.

You may not actually notice that the money you saved in the bank is losing purchasing power since its happen gradually but you'll get to notice it as time goes on, I think losing money on a bad investment is worse compare to losing your purchasing power to inflation over time.  This is because, a bad investment could sweep out everything you invested, and you may not recover from those losses in time.

Even though keeping our money in the bank for a long time cause it to lose value over time, it's safer than saving them at our homes because you could get robbed or killed. So it's better you should divide it into two parts, one part should be invest in any investment of your choice while the second part should be saved in the bank incase you need it to cover your basic needs.

[UpTober]

Small losses + inflation = hyperinflation

Seriously, when there's inflation regardless if you lose or profit your purchasing power still goes down, so how much more if you are not profitable with your investment, you are just adding another problem to an existing problem. So we have to find a way to become profitable as that's one way to at least offset inflation.

In our country, inflation is already at 7.8% as of October 2026, so for me to survive, I need to earn more than that in net income after tax.

Inflation is constantly happening, people's expenses are constantly increasing, the prices of daily necessities are rising, but despite all this, people's income has not increased.
People still have to be satisfied with the salary they used to work with earlier, and they are facing various obstacles in managing their families well from the middle. The salary that used to meet all the needs of the family and keep money aside, now the family cannot be managed well with the same amount of money, but often has to borrow money at the end of the month.

 As much as it is possible to face this challenge now, it will be more difficult to face this challenge in the future because inflation is constantly increasing and the value of the local currency is gradually losing value.

[pawanjain]

Small losses in investments vs. inflation.

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

Inflation is here to stay and has been happening since a long time and will probably keep happening too.
We have to find strategies that will secure and protect our money against inflation.
Yes, people do panic when they see their portfolio going red and at times sell their holdings due to these temporary dumps.
That is where they lose money but we have to hold stronger against these temporary dumps so that we don't lose our money.
Holding for long term wipes out these losses and compounds our profits.

[WatChe]

People basically give more priority to their cash. After keeping money in the bank, they are at least sure that they have this certain amount of savings but they do not immediately think that the price of everything is increasing. That is, due to inflation, the local currency is losing value, on the contrary, the price of daily necessities is increasing. People accept this very naturally, because people need these things, and not only one person seems to realize this fact, but all the people of a country seem to realize the same thing, so these things are easy for people to accept. But when a person invests, let's say he invests in Bitcoin, after investing in Bitcoin, when he sees that the market has dumped a lot, at that time he will be worried because he has made the investment alone and he will keep thinking that the value of his investment may decrease a lot. This is mainly because maybe the investment office is financially damaged due to inflation, but they do not realize that fact.

If you are investing in Bitcoin then you have to invest for long term in order to get good return. Those who understand Bitcoin knows that during the course of their long term investment they have to face times when price of Bitcoin goes down and it looks like investment is going in loss but they stay strong during such times because they know that price of Bitcoin will eventually recover and go up. We can easily beat inflation by hodling Bitcoin for long term but if same money goes in bank saving accounts then it won't be possible to beat inflation because profit given by bank is not enough to beat the inflation.

[Bitcoin Maxi]

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

Lack of knowledge and information can be responsible for this. There are people that don't know how to invest and since they are seeing other people investing their money and making profits, they'll choose to invest without having any basic knowledge and the investment they are involving themselves. Some people don't even know the difference between floating profit and lose and once they noticed that the worth of their crypto investment is depreciating, they will have no option than to complain about their losses when it's not yet a real loss until they sell their holdings.

[Just Say]

Small losses in investments vs. inflation.

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market.
~

That’s just how human psychology works, because the investment fluctuation brings more uncertainty to the mind of the investor about the future while “saving in the bank” appears to be a safer side because of the certainty involved.

Inflation doesn’t happen overnight in most scenarios, it happens gradually and it’s often unnoticeable by most people, that’s the reason why people have peace of mind saving money while getting tense during a downturn in their investments.

Literally that's right due to the natural psychology of people, they fear immediate losses more than invisible ones, because we think that when an investment loss decreases a person's portfolio or account balance, this decrease is directly visible. On the other hand inflation does not reduce the number of money but rather reduces the purchasing power.

This should be analyzed more carefully because if you have one dollar amount of fiat currency it will still be one dollar but it can buy fewer things than before. You should consider this fact that people may get temporary peace of mind by saving fiat currency but the real value of the savings decreases due to inflation instead if they invest in Bitcoin with a long-term mindset, there is a chance of profiting from it and it seems to me bitcoin acts as a hedge against inflation, so everyone should invest in Bitcoin.

[ruykeri]

If you want to invest in assets whose prices change in the short term you should have the intention of holding for a long time. Because even if the price decreases in the short term it can recover in the long term. But if fiat currency is kept in the bank then its value will definitely decrease. Because inflation can never be completely eliminated. If we give an example of Bitcoin its price is very unstable but in the long term the output is very profitable. That is why you have to be patient in any investment. Because when you sell your invested assets your profit guarantee will be lost. But if it is decreasing but you are holding then there is a possibility of price increase in the future and your chances of making a profit will also increase. Below is a graph of the prices of gold and Bitcoin for the last 10 years. This will make it easy to understand where the price has increased in the future despite the price volatility. And this is only possible because the supply of Bitcoin is fixed and the supply of gold is limited.

Gold


Bitcoin


Source :
https://www.macrotrends.net/3230/btcusd-bitcoin-daily-price-chart
https://goldprice.org/gold-price-history.html

[Abdul Sami786]

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

Lack of knowledge and information can be responsible for this. There are people that don't know how to invest and since they are seeing other people investing their money and making profits, they'll choose to invest without having any basic knowledge and the investment they are involving themselves. Some people don't even know the difference between floating profit and lose and once they noticed that the worth of their crypto investment is depreciating, they will have no option than to complain about their losses when it's not yet a real loss until they sell their holdings.

I think it is better to increase your value in the same investment because there is no risk.I can not  just say that it has increased more than you have before.If money is safe in the bank but its value decreases every year due to inflation then it cannot be called a real feeling. For this you will have the opportunity to like where there is a risk of loss, there is an opportunity to beat inflation and build your wealth but it is also important to value it.I do not like to take any risk but I will not miss an opportunity where I can protect my wealth from inflation.

[Cgrexp]

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

Lack of knowledge and information can be responsible for this. There are people that don't know how to invest and since they are seeing other people investing their money and making profits, they'll choose to invest without having any basic knowledge and the investment they are involving themselves. Some people don't even know the difference between floating profit and lose and once they noticed that the worth of their crypto investment is depreciating, they will have no option than to complain about their losses when it's not yet a real loss until they sell their holdings.

Many people begin investing after seeing others make a profit, yet they often fail to gain a sufficient understanding of risks, market fluctuations, and the importance of long-term planning. When the price of an asset such as Bitcoin drops, they may mistakenly believe that their invested capital has been lost. In reality, such a loss remains merely a paper loss unless the asset is actually sold. A key aspect of investing is understanding market volatility and remaining steadfast in one’s decisions. One should not start investing simply because others are profiting. it is essential to carefully consider one’s own financial situation, capacity and personal goals. Investing without proper knowledge increases the risk of making poor decisions out of fear during even minor market downturns. Therefore, before seeking to profit from investments, an investor should learn how to manage risk and how to control their emotions in order to make sound, well-informed decisions.

[Juse14]

Small losses in investments vs. inflation.

I have thought about this issue a lot and it is clearly evident in people's behavior that people are keeping money in the bank and the value of that money is gradually decreasing due to inflation. People do not have any tension about this issue but people get tense when they invest and after investing when they see that they are losing some amount due to temporary negative changes in the market. Yes, there may be some loss due to temporary changes in the market but that market becomes positive again, but why don't people worry about the amount of value they are permanently losing in fiat due to inflation. I think the permanent loss of inflation is much more serious than the small loss of investment.

This problem is found in numbers, where if someone keeps money in a bank, the ownership of the amount of money does not change and that is what makes many people calm, they do not realize that the value of their money goes down even though the amount of money they have remains unchanged, and most people who experience this are those who are people with financial literacy.

Investing for them is very scary because the amount of money they have fluctuates as the market goes on, they will experience psychological panic when their portfolio starts to redden due to decreased market activity, and that is normal and reasonable, so additional notes also depending on what investments are made, some people will not experience the same panic when they hold gold.