dododiyazis
@dododiyazis
Bitcoin’s investment strategy during global inflation centers on its role as a “digital gold” or store of value. Unlike fiat currencies losing value due to inflation, Bitcoin’s decentralized and scarce nature makes it appealing. However, its price volatility (e.g., 50% drawdowns in 2022) contrasts with gold’s relative stability, which has maintained value over centuries but often underperforms Bitcoin’s explosive gains (Bitcoin’s 10-year CAGR ~60% vs. gold’s ~4%). Stocks, particularly in inflationary periods, can provide dividends and growth but face risks from market corrections, as seen in 2022 when the S&P 500 dropped ~20%. A prudent strategy could be holding Bitcoin long-term (3–5 years) to weather volatility, with a smaller gold allocation for safety and stocks for income generation, rebalancing annually to manage risk.
0 reply
0 recast
0 reaction