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>bitcoin has absolutely no use. I would think that putting your savings into bitcoin would have use over holding a currency (Bolivar) with an annual inflation

>bitcoin has absolutely no use. I would think that putting your savings into bitcoin would have use over holding a currency (Bolivar) with an annual inflation of ~6000%? It is your argument that using bitcoin as an inflation hedge isn't useful? or maybe that there are better inflation hedges?

firekvz 9y ago
why would anyone do that with bitcoin when they can buy USD and avoid all the problems that come with btc (scamming, losing, price variation, etc)? Inflation here merely depends on USD exchange rate to VEF, thats it. If i need to "protect myself" (and I do) all i do is open facebook, find someone selling USD in a BOfA account, give them my zelle email wait for the money and transfer them VEF in regular venezualan banks accounts (instant transfers). USD >>>>>>>> BTC anytime in terms of "protection agains inflation".
- DINKDINK 9y ago
  >why would anyone do that with bitcoin when they can buy USD How is a Venezuelan suppose to buy things online with paper USD? If you have to order medicine to stay alive because there's a scarcity in Venezuela, you cannot use paper USD for that.
jcranmer 9y ago
At 6000% inflation, your $100 worth of bolivar will be worth ~$1.66 at the end of the year. If bitcoin ends up the year down 90% (not unreasonable), it's worth $10. Sure that's more than $1.66 by a lot. But if you bought USD instead and heald that, it would be worth $98 or so. Bitcoin's valuation is too unstable at the present to be a good store of value. This is going to be doubly the case if inflation has already destroyed your savings: you need highly liquid, highly fungible reserves, and things like gold or bitcoin are just simply not up to that task.
- DINKDINK 9y ago
  >Bitcoin's valuation is too unstable at the present to be a good store of value Are you framing your Store-of-Value judgement on a very narrow, confirmatory window of time? There have only been 5 months out of the past 96 months of Bitcoin's existence where bitcoin trades have been at a net loss. Additionally ~81.7%[1] of buy volume is in the black (by a healthy amount: 20X). >If bitcoin ends up the year down 90% (not unreasonable) Would you sell me a call at 10% of spot-market price? I would love to buy that. [1](14.786+1.379+1.158+1.265)/22.728

firekvz 9y ago

why would anyone do that with bitcoin when they can buy USD and avoid all the problems that come with btc (scamming, losing, price variation, etc)? Inflation here merely depends on USD exchange rate to VEF, thats it. If i need to "protect myself" (and I do) all i do is open facebook, find someone selling USD in a BOfA account, give them my zelle email wait for the money and transfer them VEF in regular venezualan banks accounts (instant transfers). USD >>>>>>>> BTC anytime in terms of "protection agains inflation".

DINKDINK 9y ago
>why would anyone do that with bitcoin when they can buy USD How is a Venezuelan suppose to buy things online with paper USD? If you have to order medicine to stay alive because there's a scarcity in Venezuela, you cannot use paper USD for that.

jcranmer 9y ago

At 6000% inflation, your $100 worth of bolivar will be worth ~$1.66 at the end of the year. If bitcoin ends up the year down 90% (not unreasonable), it's worth $10. Sure that's more than $1.66 by a lot. But if you bought USD instead and heald that, it would be worth $98 or so. Bitcoin's valuation is too unstable at the present to be a good store of value. This is going to be doubly the case if inflation has already destroyed your savings: you need highly liquid, highly fungible reserves, and things like gold or bitcoin are just simply not up to that task.

DINKDINK 9y ago
>Bitcoin's valuation is too unstable at the present to be a good store of value Are you framing your Store-of-Value judgement on a very narrow, confirmatory window of time? There have only been 5 months out of the past 96 months of Bitcoin's existence where bitcoin trades have been at a net loss. Additionally ~81.7%[1] of buy volume is in the black (by a healthy amount: 20X). >If bitcoin ends up the year down 90% (not unreasonable) Would you sell me a call at 10% of spot-market price? I would love to buy that. [1](14.786+1.379+1.158+1.265)/22.728