I have reason to believe my country's fiat will be inflated in the coming 12 months. Not hyper inflation, but a 50% to 100% increase in consumer prices over the next 12 months. My country is small and not connected to anything American related. Still wondering if it is a good idea to buy more crypto now as a further hedge against my fears. The article makes me think it may be unwise to do so given the massive speculation driving the price up led by similar american worries. Still does not change my fear of inflation at home.
You could just buy dollars, Euros, or (absurdly) the stablecoins which let non-US persons more easily hold USD-equivalent assets than having a US bank account.
For the most part inflation threatens cash holdings and fixed-income instruments (such as bonds) which have not priced in inflation. Therefore in order to "hedge" against inflation you should reduce your exposure to such assets to the largest extent possible. But a crypto-currency is a high-risk investment, so using it as a "hedge" against inflation is unwise because you're swapping one risk for another (potentially) greater risk.
by assets. home, gold, treasuries, shares should give you similar protection against inflation as the crypto with much less volatility. less profits as well, but it all depends on your risk profile.
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I have reason to believe my country's fiat will be inflated in the coming 12 months. Not hyper inflation, but a 50% to 100% increase in consumer prices over the next 12 months. My country is small and not connected to anything American related. Still wondering if it is a good idea to buy more crypto now as a further hedge against my fears. The article makes me think it may be unwise to do so given the massive speculation driving the price up led by similar american worries. Still does not change my fear of inflation at home.
You could just buy dollars, Euros, or (absurdly) the stablecoins which let non-US persons more easily hold USD-equivalent assets than having a US bank account.
For the most part inflation threatens cash holdings and fixed-income instruments (such as bonds) which have not priced in inflation. Therefore in order to "hedge" against inflation you should reduce your exposure to such assets to the largest extent possible. But a crypto-currency is a high-risk investment, so using it as a "hedge" against inflation is unwise because you're swapping one risk for another (potentially) greater risk.
by assets. home, gold, treasuries, shares should give you similar protection against inflation as the crypto with much less volatility. less profits as well, but it all depends on your risk profile.