Small losses in investments vs. inflation.

[liasbaa]

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.

We do not realize the loss of money due to inflation, so we do not give it much importance. But the amount of money kept in the bank is gradually being lost due to the effect of inflation. But after a certain time, the bank gives us a small amount of profit, so we do not realize it or many do not think about this issue. If this amount of capital could be invested, the profit would have been much higher after a certain time.

Some people sell because of temporary changes in the market and sometimes panic, but the possibility of getting profit against capital in long term Bitcoin investment much higher than any other investment.

The product that you are able to buy now, you will not be able to buy this amount of product at the same price after the next 5 years, this means that the value of your fund is decreasing due to the effect of inflation. This is an example, so accumulate Bitcoin through discretionary income compared to additional fiat. There will be a much higher chance of profit compared to keeping fiat in the bank.

[Cityhunter34]

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.

Knowledge is the key to navigating anything we are doing, because when you don't understand how things work, you will definitely find it difficult. Even though we often make mistakes sometimes, it is very good for us to always do the needful, so that in case anything comes up in the process, you can easily withstand it and move on regardless of the amount. Making money through Bitcoin investment is something that requires a lot of work and discipline, which many people are still far from, and they want to make it in the short term, which is not possible.

[TheUltraElite]

Inflation is something that is not going away, so we have to operate methods to avoid getting into collecting too much cash which is deprecated its value over time and will continue further to do so.

The importance of keeping money in banks is still there but you would prefer keeping that share small and consider stocks, bonds, crypto as alternative methods to invest money in.

However problems exist in every sort of investment and therefore knowing the asset prior to investing is important. It will not always fight the inflation and often you cant cover it at all, but its worth doing if one is willing to invest and make wealth.

[EarnOnVictor]

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.

It's not as simple as you said it. Your money in the bank is often viewed as a guaranteed money (at least for the figure), but you can't say the same of a volatile investment. While many tried some investments, they rather lost too much. Is that not worse than inflation? Plus the fact that banks would give you interest on it, and this interest is even negotiable depending on the amount.

However, this is not to support the bank, but weighing a better option. In my country, you can still get about 8% interest per annual on your money, so if inflation is not insane, your money could still be doing good, but I fear hyper inflation. Above all, locking your money in properties and business might be the best option here.

[greysonz]

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.

There's something to think about based on what you're saying. In the country where I live, inflation in the local currency is 12 percent. In the US, it's a maximum of 5 percent. So, if I constantly convert my money into dollars, I'll avoid a 7 percent depreciation. Let's not worry about exchange rate differences; let's assume the average rate remains constant, as it has for the past seven years. But you could also invest these dollars. You can't put them in banks; they offer very low interest rates on dollars. So you could buy physical gold, but the spread is huge, making it pointless. So, that leaves Bitcoin. It's actually selling against USD. Bitcoin is definitely ahead of all other assets in this regard, too. And in all other respects—easy to transfer, easy to store, limited supply, and so on.

[freedomgo]

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.

Blame that on the corrupt government because they are the ones managing the country and their actions affect our economy.
If you belong to the top 10 countries with high inflation you will really feel its effects.

But if you are at the bottom of that list, inflation is less of a problem for you.


https://www.visualcapitalist.com/mapped-inflation-rates-around-the-world-in-2026/

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.

No matter how hard we work if inflation is high or worse we experience hyperinflation, the maximum we can achieve is just to survive from that nightmare. So it's better if we don't reach that point, the government needs to work on the problems they already foresee before they become serious ones.

[Mpamaegbu]

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.

Your observation is valid. It's the same way some people won't complain when their offline businesses wreck but will cry blood if their investment in cryptos dipped, and call it a scam.

For the fiat and inflation thing, my method is to leave whatever money I'm not spending immediately in stablecoin. Just a few local fiat standby for daily needs. I convert my stablecoin to fiat immediately I want to do heavy spending, and that's it. I've been able to save myself from that inflation thing to some extent using that method.