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And things that can't be printed (housing, gold, bitcoin) become increasingly more expensive.
by ed25519FUUU 6y ago
And things that can't be printed (housing, gold, bitcoin) become increasingly more expensive.
- chii 6y agohousing becoming more expensive is a result of bad city planning and zoning policies, rather than any other factor. Build dense, build more, and allow demand for housing to be satisfied.
- jfengel 6y agoBut to the degree that they're just inflation hedges, they're poor investments. They would earn less than 2% per year. They may be better than holding dollars, but most people don't want to hold dollars, beyond enough to keep their finances going. To the degree that they investments, they're subject to the same factors as other investments. And money flows into and out of them according to other factors. Housing goes up and down according to geography. Gold goes up and down when people want to get out of or into stocks. Bitcoin goes up and down in a similar way, though with more attraction as new people discover the market. In all of those cases the risk is much larger than inflation. Those things can be either inflation hedges or investments but not both. They're more attractive than dollars, but dollars are neither investment nor hedge. They're a temporary store before you either buy goods or invest.