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Topic
Board Speculation
Merits 1 from 1 user
Re: Buy Buy Buy or Sell Sell Sell?
by
Jewan420
on 26/06/2025, 19:23:44 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.
You may have a misconception about inflation. Inflation only guarantees a decrease in the value of fiat against goods. That is, the goods you can buy today for 100 fiat, you will have to buy for 110 fiat after 10% inflation. The biggest impact on investment is that your expenses increase and your discretionary income decreases. Naturally, you will be forced to reduce your DCA if your income does not increase with inflation.

For example, your income is 1000 fiat, which is equivalent to $100. Suppose your expenses on income are $60 and your discretionary income is $40. Now if 10% inflation occurs in your country, the price of goods in your country will increase and you will have to spend $6 more to buy goods than before. Now your expenses on income ($100) are $66. Since your income has not increased, your discretionary money after expenses will be $34, which is $6 less than before. Naturally, you will be able to manage your investments using less money than before and will be forced to slow down your investments.