Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy Buy Buy or Sell Sell Sell?
by
DubemIfedigbo001
on 26/06/2025, 19:06:03 UTC
⭐ Merited by JayJuanGee (1)
I agree with you that investors who adhere to the DCA method will not be affected, while those who choose to invest a small amount may likely get affected, in terms of slowing down the accumulating process. For example, if your goal is to accumulate for about 10 years, due to high inflation, you may have to add more years before reaching your goal.
I am a bit confused by your sentence. How can we be affected by inflation while investing? From my limited knowledge, what I understand is that with inflation, your income will also increase and you will be able to buy the same amount of Bitcoin as before. For example, before inflation, your income would be 1000 fiat which is equivalent to $100. After inflation, your income would be 1500 fiat which is equivalent to $100. Here I do not see the possibility of your deposit process being slow. Due to inflation, the value of your country's fiat decreases, but the stable currency ($) remains the same. So I can clearly say that inflation cannot have any effect on your investment journey. I think your investment journey will be the same during an inflationary cycle.
Inflation does not work that way bro, in fact inflation is decrease in purchasing power of you fiat currency and even in inflation, there is no guarantee that your income increase at all from its source and you would find out that you are using more units of fiat to purchase same necessities and it can reduce the funds you invest into bitcoin if your income does not increase.

Leet us take for example: You previously invested 1000 fiat which amounted to $100 into bitcoin in your example, and after inflation possibly your currency crashed against the dollar by 20%, the 1000 fiat you previously invested into bitcoin would now be worth $80 instead of $100 and you would need an additional 200 fiat to invest your normal $100 into bitcoin. Not to mention that with inflation, your expenses budget would tend to rise as more money may be needed to attend to same expenses and this would in turn even reduce your resultant discretionary income and further cause a decline in the dollar equivalent of your normal investment amounts.