What I mean is that my salary that I got this year gets me less stuff than last year. So if I don't believe that my country's inflation rate will come down any time soon I need to hedge that against some other currency
That is true. But again most of crypto is negative over the past year plus so to simply call it a hedge is a mistake. That is what most people miss. They think crypto better than fiat because they dont really understand FOREX.
You're right, but I'm basically just betting that the crytpo I go into basically won't depreciate more than my fiat basically =) Could also convert and save in e.g. dollar but don't really like that idea
You are right that you could have to hedge but that is done in many ways and no guarantee the hedge works unless you use some type of FOREX derivative although that wont really help with products.
Fiat has no place with Bitcoin. In my country fiat has lost so much value. BTC may be trending downward as you said, but it has the potential to keep going upward into the future. Fiat doesn't have such potential
When putting it all in the same category you are generalizing too much. Plus there is such a gross misunderstanding of what fiat even is or how it plays in the global economy.
Alright, using my country as an example, fiat has no place with BTC. People who bought BTC 5 years ago got much more value for their money than those who saved same amount in Fiat currency
Really, at least not in Nigeria. Smartphone may look so costly then because fiat still have value at the time. Smartphone is not affordable at all. I am speaking based on the condition of my country
Well that arent comparable, at least to USD. Bitcoin can appreciate greatly in price so a better comparison is to a stock. Crypto versus USD depends upon the APR.
Well since they are both worth about the same, $1, I would say the HBD 20% APR is tough to beat. Find something that pays 25% or 30% and might be worth it but it isnt likely out there.
I want to headge and have some savings in Bitcoin and other cryptos. Fiat is just trending downwards
How is this the case?
Isnt BTC down 50% over the past 18 months?
What I mean is that my salary that I got this year gets me less stuff than last year. So if I don't believe that my country's inflation rate will come down any time soon I need to hedge that against some other currency
That is true. But again most of crypto is negative over the past year plus so to simply call it a hedge is a mistake. That is what most people miss. They think crypto better than fiat because they dont really understand FOREX.
You're right, but I'm basically just betting that the crytpo I go into basically won't depreciate more than my fiat basically =) Could also convert and save in e.g. dollar but don't really like that idea
You are right that you could have to hedge but that is done in many ways and no guarantee the hedge works unless you use some type of FOREX derivative although that wont really help with products.
Fiat has no place with Bitcoin. In my country fiat has lost so much value. BTC may be trending downward as you said, but it has the potential to keep going upward into the future. Fiat doesn't have such potential
When putting it all in the same category you are generalizing too much. Plus there is such a gross misunderstanding of what fiat even is or how it plays in the global economy.
Alright, using my country as an example, fiat has no place with BTC. People who bought BTC 5 years ago got much more value for their money than those who saved same amount in Fiat currency
How much value has fiat lost in say, smart phone. Havent they gotten cheaper over the last decade?
Really, at least not in Nigeria. Smartphone may look so costly then because fiat still have value at the time. Smartphone is not affordable at all. I am speaking based on the condition of my country
this is the trend all over the world
that's how it should be
Well that arent comparable, at least to USD. Bitcoin can appreciate greatly in price so a better comparison is to a stock. Crypto versus USD depends upon the APR.
Ok, we can turn it around to between Fiat and HBD..
I think that will be better
Well since they are both worth about the same, $1, I would say the HBD 20% APR is tough to beat. Find something that pays 25% or 30% and might be worth it but it isnt likely out there.
Especially with no counterparty risk.
ah crypto o. If they wake me up from sleep this is what I’ll tell them as well
Greate choice