How are you protecting your FIAT money from Inflation?

[banafinfodafuggiano]

Business and personal profits, money in the bank basically.
How are you guys protecting it other than the usual Crypto/Gold/Currency diversification?

Going all in Crypto is just nuts and risky, it's okay to have 30-40% of your net worth in Crypto but other than that,
people with a lot of cash in the bank, how are you protecting it from the very near hyper inflation which is pretty much coming to all currencies?

(USD/AUD/EUR/GBP are pretty much debasing against Real Estate, Crypto and Gold, and these are at all times high now, so what are you investing in? )

 

[wellington]

Why not have stablecoins and earn yield on, mind anything sub 12% is debased and inflated away.

 

[void]

Why not have stablecoins and earn yield on

because it involves enormous counter party and regulatory risk?
sure thing for frictionless transactions where volatility of bitcoin might be a problem of either side

 

[volcanotnt]

Btc - can help with that. with your keys.

 

[JackAlabama]

Business and personal profits, money in the bank basically.
How are you guys protecting it other than the usual Crypto/Gold/Currency diversification?

Going all in Crypto is just nuts and risky, it's okay to have 30-40% of your net worth in Crypto but other than that,
people with a lot of cash in the bank, how are you protecting it from the very near hyper inflation which is pretty much coming to all currencies?

(USD/AUD/EUR/GBP are pretty much debasing against Real Estate, Crypto and Gold, and these are at all times high now, so what are you investing in? )

im very nuts and risky.

 

[Martin Everson]

(USD/AUD/EUR/GBP are pretty much debasing against Real Estate, Crypto and Gold, and these are at all times high now, so what are you investing in? )

I am currently 100% in income producing real estate having exited the bond market. The income goes into other investments in non-western markets currently.

P.S Inflation is a much lower concern to me personally. I am more concerned abut protecting myself from geopolitical risks i.e war, arbitrary sanctions, confiscation, blacklisting etc.

 

[wellington]

because it involves enormous counter party and regulatory risk?
sure thing for frictionless transactions where volatility of bitcoin might be a problem of either side

You need to take the time to read “great taking” - perhaps then you’ll realize the risk you have outside of crypto rails - perhaps then you’ll realise the beauty of stablecoins and the ability to react 24/7/365

 

[anotherDev]

You need to take the time to read “great taking” - perhaps then you’ll realize the risk you have outside of crypto rails - perhaps then you’ll realise the beauty of stablecoins and the ability to react 24/7/365

A Stablecoin is backed by USD in a bank though. If the bank goes under the Stablecoin is useless.

 

[wellington]

A Stablecoin is backed by USD in a bank though. If the bank goes under the Stablecoin is useless.

Correct but a stablecoin is liquid…. Your bank will just have a error message when you try to do something…

 

[diatessaron]

other than the usual Crypto/Gold/Currency diversification?

Are there any other ways? There's nothing out there other than Bitcoin and gold to some extent that can protect your money. I'd say land but you never know when they decide to build a new road and abandon the old one, killing any potential business, happened to me.

 

[wellington]

This was proven when Silicon went under - USDC traded downwards yes - but the bank depositors would have been entirely fucked as they couldn’t access their accounts and had the Fed not stepped in they’d have lost anything not protected - the only reason UsDC de priced so heavily was due to the sheer amount of backed reserves stuck inside of Silicon at the time.

Otherwise 80/90 etc cent on the dollar is better than 5-15cent on the dollar some of the Silicon Valley startups would have been left with from a traditional bank protection scheme - and bare in mind there’s only like a couple of hundred billion actually there to backstop depositors funds…

 

[anotherDev]

Correct but a stablecoin is liquid…. Your bank will just have a error message when you try to do something…

To put into perspective once a stablecoin depegs cause of underlying value being gone you have few minutes to save your capital. Then you are instantly -20/30%. So yeah it’s liquid but you need to be always alert with your cold wallet in hand

 

[wellington]

Are there any other ways? There's nothing out there other than Bitcoin and gold to some extent that can protect your money. I'd say land but you never know when they decide to build a new road and abandon the old one, killing any potential business, happened to me.

Gold has lost roughly 4% pa to currency debasement since 2013 (until 2023)

Real Estate 2.5%

S&P flat

Nasdaq +6%
Crypto +32

To put into perspective once a stablecoin depegs cause of underlying value being gone you have few minutes to save your capital. Then you are instantly -20/30%. So yeah it’s liquid but you need to be always alert with your cold wallet in hand

Again advise great taking - and addition researching just how much back stop there is to banks customer funds in a event of a collapse - I.e how much is available - as it’s about a few hundred billion.

Currently 120 ish billion backstop for the entire US banking industry

FDIC Quarterly

FDIC Quarterly

www.fdic.gov

342$ per American

“Oh but the Goverment will step in”
- Goverment then debases ~ fixed supply assets rises rapidly ~ variable goods/services costs inflate gradually.

Oh and the “risk stable coin” argument is mute on that point when you get that protection for the following reasons.

- you have the funds immediately rather than awaiting FDIC or Gov action which is slow but in the mean time “fixed supply assets rapidly rise” and “variable assets gradually increase”.

Meaning you get more spending power quicker even if you take a haircut.

https://www.barrons.com/articles/fdic-bank-insurance-depositors-f7261227

 

[anotherDev]

Gold has lost roughly 4% pa to currency debasement since 2013 (until 2023)

Real Estate 2.5%

S&P flat

Nasdaq +6%
Crypto +32

Again advise great taking - and addition researching just how much back stop there is to banks customer funds in a event of a collapse - I.e how much is available - as it’s about a few hundred billion.

Currently 120 ish billion backstop for the entire US banking industry

FDIC Quarterly

FDIC Quarterly

www.fdic.gov

342$ per American

“Oh but the Goverment will step in”
- Goverment then debases ~ fixed supply assets rises rapidly ~ variable goods/services costs inflate gradually.

Oh and the “risk stable coin” argument is mute on that point when you get that protection for the following reasons.

- you have the funds immediately rather than awaiting FDIC or Gov action which is slow but in the mean time “fixed supply assets rapidly rise” and “variable assets gradually increase”.

Meaning you get more spending power quicker even if you take a haircut.

https://www.barrons.com/articles/fdic-bank-insurance-depositors-f7261227

Everything that I am writing is based on last year's Usdc incident. You sadly only get spending power for couple minutes. Then haircut is inevitable and depending on how big the loss event is the bigger the haircut. At the end of the day if the spending power is 20% of your capital then its s**t. I still hold stablecoins but lets be realistic

 

[Tomy223]

I am currently 100% in income producing real estate having exited the bond market. The income goes into other investments in non-western markets currently.

P.S Inflation is a much lower concern to me personally. I am more concerned abut protecting myself from geopolitical risks i.e war, arbitrary sanctions, confiscation, blacklisting etc.

What are those other investments?

 

[banafinfodafuggiano]

I'm talking about escaping the FIAT currencies and you guys are talking about USDC lol

 

[Frank in Bangkok]

How are you guys protecting it other than the usual Crypto/Gold/Currency diversification?

Good question, but, in my opinion, inflation is only half of the question.
The other half is protecting your assets against confiscation (by government).
(Maybe called, "bail in", maybe "frozen" account pending detailed information, but confiscation it is.)

Rather than things, I'm looking at services:

1. Do not need to be bought and sold, carried or stored.
2. Not easily seen, or at least, do not appear as valuable assets.
3. Can change location quickly and easily (unlike real estate).
4. Does not require access to the Internet.

In another thread on this forum I suggested two possibilities for such services.
Now that I'm thinking in these terms, I'm starting to see lots more options, but still "thru a glass darkly" at this time.

If I had to decide today, I would buy certain kinds of small tools that could be carried in, say, a single duffle bag.
Then later ... as the tsunami of inflation-confiscation arrived ... I would look around for exactly what to do with those tools.

 

[Martin Everson]

What are those other investments?

As I said in other threads if you ultimately want to protect your wealth you invest in land, art and gold . However OP may not have the same time frame as I do for protecting purchasing power for future generations.

 

[JohnLocke]

As I said in other threads if you ultimately want to protect your wealth you invest in land, art and gold

OP I would follow this advise if you don't have any better alternatives in place.

 

[Tomy223]

As I said in other threads if you ultimately want to protect your wealth you invest in land, art and gold . However OP may not have the same time frame as I do for protecting purchasing power for future generations.

Yes I remember. But you know what I have seen lots of Martins. You have become China, speedy, intelligence is growing..