We all know how hard it is to save our purchasing power. Even though every single day the digits on my bank accounts increase, the prices of assets and liabilities are increasing faster. Our fiat money could not perform quite well during the pandemic. However, I cannot blame any currency because they failed in protecting themselves against the side effects of the pandemic.
One way or another, because of the Covid-19, the systems are more fragile than before. One thing is certain that we will never have a similar world like the one we had before. During the lockdown process, I had a chance to witness what are people doing with their money in terms of investment.
For people who are not investors, they leave their money on their bank accounts to earn interest. Since it's passive income, it does not bother them. All they want to see is different in digits 😶
For people who are not investors but eager to invest, they put their money on stock exchanges because they are aware of the fact that interest rates given by banks do not compensate for their loss of purchasing power. Moreover, they assume that they will not withdraw the money for 5-10 years.
For people who are investors, I realized that people want a similar system as in banks in which they believe that money will work for them. One of the fundamental reasons for this De-Fi hype is based on this mindset. The majority do not want to deal with the volatility or high risk in stock or crypto assets. In addition to De-Fi investors, there are people who invest in real estate, NFTS, Gold, Silver & Bitcoin. They believe that these things have intrinsic values that are acknowledged by everyone.
Up until now, I could figure out these types of investment strategies by people. To be honest, but for the one in which people earn interest on their national currency, the other options make sense to me. However, timing is crucial. For developing countries stock markets, there are some opportunities to be utilized though a bit risky as for me.
What lessons I got from the first wave?
The first wave was a bit surrounded by fear and uncertainty. People could not decide meaningfully. Everyone can remember the times when a roll of toilet paper was more valuable than ever 😅
The governments will keep printing money since any stuck in the economy may bare undesired consequences. The least risky thing is to print money for the governments whereas the least risky thing for people who do not have enough financial literacy is to earn interest in their national currency.
Anyone selling something will increase the price to compensate for their loss of purchasing power. However, the more they lose it, the higher will the price be. If the prices are rising drastically, how can others buy it? That's a huge concern to be solved.
More printed fiat money ✓
Increasing prices ✓
Less liquidity ✓
FOMO and unforeseen acts of people ✓
What am I going to do?
- Since in my daily life I use my national currency, I always have some cash and invested money on my bank account.
- I choose at most 5 stock share and wait for the price that I pointed to buy and sell. I do not invest with more than %10 of my portfolio.
- I have gold-based certificates and increase the amount of them. If you have an opportunity, you can buy tangible/real gold.
- I invest in Crypto. Bitcoin, ETH, Nexo, Hive & CHZ consist of the vast majority of my Crypto portfolio.
- I collect NFT from blockchain-based games such as Splinterlands, Holybread, RisingStar, etc.
- Finally, I earn %10 interest for my stable coins in Nexo. The situation is ~ %7 APR in my country where the inflation rate is above %12, I earn %10 interest on USDT, DAI, USDC in Nexo. (This investment is quite limited but one of the promising ones in my opinion)
These are the eggs in my basket. I want to be ready for the second wave of FUD most probably due to the health-related issue. I do not buy a house or a car as an investment option. Though buying a land might be an option, I do not have enough time to chase an undervalued one 😌
What about you mates? I'm pretty sure that you are investing in Bitcoin, Hive, and other tokens operating on Hive blockchain. What about the other aspects?
We are open to your suggestions. Enlighten us 🤓