Krypto als Inflationsschutz: Chancen, Herausforderungen und langfristige Auswirkungen?

First of all, I would put the point in the room that inflation must always be seen in the long term. If I only look from today to tomorrow, then no investment in the world is suitable as inflation protection. It always takes time and if you don’t bring it, then you don’t protect against inflation.

Then you should wonder where does inflation come from? Why is everything more expensive, even though we have more and more effective techniques? Why are products costing more and more, although the effort actually falls to produce them? The answer is because global monetary policy leads to the fact that money has less and less value and people hurry to get rid of it and invest it somewhere (of course very simplified).

Therefore, if we want to protect ourselves against inflation, the first step is not to keep the currency that is worth it. Instead, it is necessary to have goods that will increase in value in the future because the demand rises or the goods are available to a limited extent. Since one cannot create houses and gold from nothing, the examples that have risen in value in the past are examples.

In order to answer the question whether “Krypto” is suitable for inflation protection, one must first understand what that is. Here the distinction between “Krypto” and Bitcoin is very important.

First of all, in my eyes, is centralized Fintech or Scam (or both). Although potentially large profits are possible here, such large losses are possible and since most cryptocurrencies are competing with each other, it is also not ensured that the chosen cryptocurrency exists long enough to be considered as inflation protection, since it can be the case at any time that Altcoin A is replaced by Altcoin B or is experiencing more demand. I do not see this danger at Bitcoin as the properties of most Altcoins differ fundamentally from those of Bitcoin. In any case, the well-known Altcoins are strongly centralized, which is a criterion for me against the status of inflation protection. For example, ETH, where the rules are changed centrally.

With Bitcoin, on the other hand, I can be sure that it is decentralized and there are no central parties that can influence the code and thus the rules. Therefore, only bitcoin that comes under the cryptocurrencies as a value store remains. There will never be more than 21 million BTC, and on the other hand you can be sure that everything else in relation to Bitcoin is inflationed.

Of course, Bitcoin is also volatil but there comes again to wear what I said at the beginning: You have to judge long-term and not from today to tomorrow. And in the long term, Bitcoin definitely experiences an increase in value. Even if it were down by 50%, the trend would still be positive in the long term. And in contrast to gold, etc., a lot of potential is still possible.

Sure is the speculation but if you’ve been busy with bitcoin, that’s just awesome. Because Satoshi thought at that time I was definitely scrambling as people tick. Bitcoin is a self-regulating control loop and therefore does not die.

due to their limited quantity and their decentralised nature.

You should look more closely at the differences between bitcoin and crypto. Neither decentrality nor the limited amount applies to all old coins. Ethereum, for example, is quite strongly centralized and various other coins have no limit to the amount (Doge Coin zb). In addition, the rules in these networks can be easily changed.

How effective are cryptocurrencies actually as protection against inflation?

As I have already stated, one can say that Bitcoin is a long-term inflationary protection. There is no guarantee of inflation protection.

What mechanisms within the crypto world support this function,

Applies only to Bitcoin: Absolute limitation to max. 21 million, increasing interest and need in the global population, decentrality and the global network.

and how do cryptocurrencies differ from traditional assets such as gold or real estate?

Again only for Bitcoin: What happens when the gold price rises sharply? It is worth promoting gold with greater effort. This increases the offer and the price falls. That can’t happen with Bitcoin. No matter how high the demand is, it can always be thrown only 6.25 BTC per block every 10 minutes. Only the network becomes more decentralized when new parties join and run mining.
Then there is the obvious: gold is expensive in shipping and storage. Bitcoin can be easily kept and conveniently dispatched around the world. Real estate is self-explanatory.

What long-term impacts could we expect if more investors include cryptocurrencies in their portfolios to secure themselves against inflation?

A price increase of Bitcoin is not surprising. This would also increase acceptance and reduce volatility in the long term, as more money has to be moved with increasing volume to make a change in price.

And finally, what risks should investors consider if they consider cryptocurrencies as part of their inflation protection strategy?

As I had already said, one should first understand where the differences between bitcoin and cryptocurrencies are. In the latter, it should be noted that one does not have inflation protection, as 99% of all old coins will disappear sooner or later.

For Bitcoin, what is generally applicable to investment is: long-term investment and only if you have understood what to invest. And only use money that you don’t need.