Because if you are already very frugal and lean but what you purchase costs more and more, that’s certainly a bad new for you, no? Because your twelve month rolling spending average will continue to increase time over time, etc.
I don’t see how it could not be a problem if the spending base line you have is increasing. Without mentioning your pension plan that is melting over time.
7% inflation = - 50% purchasing power every decades. That’s huge, even for the most keynesians of us.
If you don’t think it is that bad, you can check the Chinese inflation as well (hint: it’s bad)
The average inflation in Switzerland is something around 2.3% over the last 70 years, nowhere near 7%. Why do you take the US inflation rate to argue about increased spending in Switzerland? Makes no sense.
I know, I’ll trigger a lot of crypto fans now and I’ll regret doing so
I repeat again and again, historical performance is no indicator for future performance. What makes you so sure that Bitcoin will not halve its value next week? Any fundamental data to back up your claims?
Yes, plenty, on-chain data analysis are your friends. I posted a few analysts I personally like in a post a few weeks ago.
Let’s see! I am sure you only buy made in Switzerland and you won’t be impacted by the price of fuel, chips, consumer goods, online services etc. coming from abroad. Not even talking about real estate or rent, these have “barely” changed in Switzerland (/sarcasm).
How is on-chain data analysis fundamental data? That’s basically the same thing as reading charts for stocks, nothing fundamental about it, at maximum this can be considered as technical analysis.
I don’t have a car so I don’t care about fuel, I almost exclusively buy food made in Switzerland. The only online service I pay for is Spotify, that barely makes any difference. As a frugal person I don’t really consume a lot of goods anyway. My rent hasn’t gone up in the last 10 years, actually the opposite, I was able to reduce the rent twice due to falling interest rates. Could you please explain how US inflation rates are relevant for the Swiss real estate market?
In it’s classic form FIRE is about NOT holding cash and NOT having to work until retirment age and rely on a pension.
The suggestion that inflation is a disaster for people into FIRE is misleading in my view. People on this forum are well placed to withstand inflation, relatively speaking
I guess the price will go down a bit. Still nothing to worry about, why would I sell. Prices going down would probably even be a good thing as they’re quite high now. I’d be looking forward for the sale. Also I’m sure the Fed will give their best to keep our economy stable. What happens to Bitcoin when the Fed raises the rate?
Hmm how would that play with interest rate parity again? If US raises rate, USDCHF will move to take that into account, it should still be ok once smoothed over.
Really scary as I reflect that such movements doesn’t affect me emotionally anymore. Before I went all in crypto, a 10% move of a stock or ETF was stressful. Now, all in crypto is a healthy correction.
I love the confidence and I am glad your lifestyle and investment will protect you from the apparent global financial crisis coming. US inflation and debt are relevant, the same goes with Chinese Bonds and whatnot; everything is intertwined. In case of doubt, Bitcoin is the best engineered monetary system we have, so holding some cannot hurt
Absolutely not, it is like saying internet activities are the same as looking at Google/Facebook stock charts…If you don’t check on-chain, you cannot know that lightning capacity has triple YTD or that yesterday we had the first Taproot transaction (this is HUGE btw). The same goes with patterns of long-term holders, for instance, on-chain data is a must.
On another topic, I can’t remember with whom I was discussing this, but here is how I am planning to use bitcoin to continue to borrow fiat to spend. I noticed a couple of mistakes in his calculations, but the thinking is interesting.
I skimmed through the video. Is it fair to summarise that in 37 minutes he argues that if something is scarce it’s price will go up, like baseball cards, and that his « secret strategy » is margin loan ?
Sounds interesting on paper, but how
Would one do that exactly here? AFAIK there are not many lenders in CH who would provide BTC collaterized loans. Perhaps Bitcoin Suisse?
Not yet, ideally a player like Relai.ch would let you borrow the money and spent it with a credit card. We will get there, I don’t really see blockers.
I suspect Blockfi will offer it soon in the US. That’s also a typical play for traditional retail banks, should they want to enter crypto markets. Maybe soon swissquote will offer it, that would be great
I think you can get a BTC collateralized loan off Celsius without issue even today, just be very careful to borrow too much (avoid getting a margin call). If you borrow 25%LTV you can get a loan at 1% interest. And we all know your collateral will go up more than 1%, so your main risk is short term price volatility. There is a great video interview about BTC with Greg Foss on Invest Answers YouTube, the guy was a legendary bond trader for decades.
Not sure I know that. It could and is very likely to but it could also never get higher than its current level. Avoiding a margin call on BTC can be a tricky thing too, with its volatility.
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, tu confirmes avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/
Durch das Lesen und die Teilnahme an diesem Forum bestätigst du, dass du den auf http://www.mustachianpost.com/de/ dargestellten Haftungsausschluss gelesen hast und damit einverstanden bist.
?
and I am glad your lifestyle and investment will protect you from the apparent global financial crisis coming. US inflation and debt are relevant, the same goes with Chinese Bonds and whatnot; everything is intertwined. In case of doubt, Bitcoin is the best engineered monetary system we have, so holding some cannot hurt 
!