How to Protect Capital Amid Global Inflation and International Conflicts

Global inflation has become one of the major challenges for the world economy. Rising prices, supply chain disruptions, and geopolitical conflicts are pushing investors to seek new ways to preserve their capital. Roman Demidov, author of The Oracle of Cryptocurrency and a U.S.-recognized expert, shares strategies that help qualified investors adapt to this new reality.

Inflation as a global challenge

“Today we are witnessing a synchronized rise in prices across different regions. This is driven not only by monetary policy but also by international conflicts that disrupt trade flows and create resource shortages,” Demidov notes.

According to the expert, diversification remains the key to capital protection. Investors, in his opinion, should distribute funds across stocks, bonds, real estate, commodities, and digital currencies. He emphasizes that concentrating capital in a single sector can be risky, as global crises can drastically change market conditions.

“Inflation today is not just about rising grocery or fuel prices. It is a systemic phenomenon that affects every level of the economy—from households to multinational corporations,” he stresses.

The role of cryptocurrencies

Demidov pays special attention to cryptocurrencies, which he sees as a new asset class capable of performing a protective function under inflationary pressure. He notes that the digital asset market is highly volatile, but a well-structured portfolio can reduce risks.

“Cryptocurrencies are not a miracle solution, but they provide an opportunity to step outside the traditional financial system. For an investor, this is a chance to create an additional level of protection,” he says.

Demidov highlights that part of digital assets should be stored in cold wallets to minimise cybersecurity risks. He recommends using the dollar-cost averaging strategy when buying crypto to smooth market fluctuations. In The Oracle of Cryptocurrencyhe also explores combining crypto investments with commodities such as gold or oil to balance innovative and traditional instruments. He further emphasises the importance of accounting for regional regulatory differences to avoid legal risks in cross-border operations.

This has also led to growing attention on AI-driven trading and risk-management platformswhich use machine-learning models to analyse large datasets, identify market patterns, and improve transparency in increasingly volatile financial markets.

Investing in the real sector

Demidov also advises investors to consider sectors such as energy, agriculture, and technology. These industries, he notes, remain fundamental to the global economy and can sustain growth even under inflationary pressure.

“An investor must consider political risks. Sometimes choosing to invest in a stable jurisdiction is more important than chasing the highest returns,” Demidov notes.

Long-term planning

The expert cautions that short-term speculation rarely succeeds during inflationary periods. Political factors, he argues, now play a role as important as economics, and ignoring them can expose capital to unnecessary risk.

“It is far more effective to build a strategy with a horizon of five to ten years while considering global trends,” he says.

In summary, strategies for qualified investors during periods of global inflation include diversification, selective use of cryptocurrencies, investment in the real economy, and careful consideration of political risk. Roman Demidov’s experience suggests that even in times of instability, investors can not only preserve capital but also identify new avenues for growth.

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