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A house bought in Turkey will always pay the rent-equivalent dividend (in whatever currency you denominate it) A business bought in Turkey will pay the net-pro

A house bought in Turkey will always pay the rent-equivalent dividend (in whatever currency you denominate it) A business bought in Turkey will pay the net-profit margin of the said business (in whatever currency you denominate it). Both are inflation protected. If you want economic risk protection because of inflation/hyper-inflation in your local currency, buy GOOG, AAPL or a broad basket of International Stock. In a stable environment, using currency as store of value for anything more than 3 months is stupid In an inflationary environment, using currency as store of value for anything more than a week is stupid. Gold didn't act as store of value. Bitcoin didn't act as a store of value. Both are what it is --- speculative assets (not store of value). If you really really really want a currency that acts as a store of value, of course there is the King Dollar, the greatest currency in the history of currencies.

scottiebarnes 4y ago
> Both are inflation protected. Not sure about your logic here. The more exposure you have to an inflating/hyperfinflating currency, the more risk you carry. Your house holds value, but the rent in fiat you collect doesn't. Every month you collect X liras, but they become worth less and less. You're assuming you can reprice rent on demand, but contractually this is dependent on the locale. > In a stable environment, using currency as store of value for anything more than 3 months is stupid You only seem to be thinking in the single dimension of currency for the average person. You forget that all government treasury bonds (pretty big and important financial instrument in any economy) are denominated in some fiat currency. 10, 20, 30 year bonds. There are macro affects when people no longer expect or trust a currency to hold value. It is part of how debt crises occur. > If you really really really want a currency that acts as a store of value, of course there is the King Dollar, the greatest currency in the history of currencies. People think Bitcoin is a monetary experiment. But it really is the modern day fiat currencies that is the huge experiment.

scottiebarnes 4y ago

> Both are inflation protected. Not sure about your logic here. The more exposure you have to an inflating/hyperfinflating currency, the more risk you carry. Your house holds value, but the rent in fiat you collect doesn't. Every month you collect X liras, but they become worth less and less. You're assuming you can reprice rent on demand, but contractually this is dependent on the locale. > In a stable environment, using currency as store of value for anything more than 3 months is stupid You only seem to be thinking in the single dimension of currency for the average person. You forget that all government treasury bonds (pretty big and important financial instrument in any economy) are denominated in some fiat currency. 10, 20, 30 year bonds. There are macro affects when people no longer expect or trust a currency to hold value. It is part of how debt crises occur. > If you really really really want a currency that acts as a store of value, of course there is the King Dollar, the greatest currency in the history of currencies. People think Bitcoin is a monetary experiment. But it really is the modern day fiat currencies that is the huge experiment.