Gavin Andresen - 2010-12-24 16:03:12

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TIPS (Treasury Inflation Protected Securities), which are sold by treasurydirect, compensate for inflation.  They are a good place to put money that you're pretty sure you will need "soon" -- within the next 5 years or so.  Assuming you trust the US government not to default on its debt (I do-- I think the government might try to inflate away the debt, but won't outright default).

Money you won't need soon aught to be invested in something productive-- invest in some business or person that is making our lives more efficient or pleasant.  That should give you the best long-term return and will make the world a better place, too.  Stock market index funds are an inexpensive, mostly safe, mostly inflation-proof way to invest.

If you have some 'playing around' money that you can afford to lose, you might want to invest in Bitcoins.  But bitcoin is a startup currency, and should be treated like a high-tech startup company-- high-risk, but very high potential reward.  You might lose your entire investment or it might turn out to be the best investment you ever made.