Post
Topic
Board Economics
Re: Inflation overpowers the value of money
by
xSkylarx
on 07/08/2023, 08:53:58 UTC
All banks offer poor interest rates that can't compete with the increasing inflation, even at normal periods when it isn't spiking like it currently is. The only way to counter inflation is by investing in assets, such as stocks or bonds.
Indeed, investment in stocks and bonds is considered as a secure option that can help counter the effects of inflation, as their long term returns have often been significantly higher than inflation.  However, it is worth mentioning that returns on Bitcoin investment have consistently been far higher compared to trading assets over the past 15 years, due to its inherent characteristics of hedge against inflation.


Both of you made good points. Instead of letting your money be stuck in the bank with significantly low-interest rates that do not compare to the continuously increasing inflation, it will be better to invest in assets and Bitcoin. Between the two, it will be up to personal preferences and knowledge in which an individual will choose to invest. Personally, I do both, but it is nice to know there are options for our money to grow amidst inflation.

But again, be sure that you'll know the risk because it doesn't mean that you'll invest it in something where you have a 100% chance of getting it back. That is why others tend to hold their money in banks, but with a rich mindset, this is what they are doing: investing in something where you have a chance to gain more profit or earn more money. For myself, I both hold money in the bank and invest in assets, mostly digital assets like Bitcoin. I know this can't prevent inflation, but it can give me more income to fight inflation.