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Another noob here, but I don't think you need to be a pro to understand really... 1) Price(t) = f(demand(t), supply(t)) 2) Inflation hedges have consistent Pr
by adverbly 4y ago
Another noob here, but I don't think you need to be a pro to understand really...
1) Price(t) = f(demand(t), supply(t))
2) Inflation hedges have consistent Price over time: Price(t) = f()
3) By the above two, this means that either:
a) demand and supply don't change at all over time
b) demand and supply both change by exactly the right amount given external factors
Realistically, a true inflation hedge does not exist because demand is almost never constant over time. BTC has constant supply, but obviously demand will drop hugely during a depression because people would rather have food than BTC. Same problem with gold. Same problem with land. The reality is simple really: you can't ignore the environment. If you want to properly allocate resources, you're just gonna need to actually speculate correctly about what future demand and supply will be.
- sgt101 4y ago>Same problem with land. ahh - that's where we differ; land == food. farmland is pretty good vs inflation.
- adverbly 4y agoThe price of food(and likewise farmland) varies hugely though. A function of population, location, supply chains, shipping costs, import tariffs, flavors of the month, the amount of disposable income in the population etc...