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An "unstable society" and "high inflation" or two very different things. Bitcoin could easily help (and does in some parts of the world) in the latter case. In
by RandomLensman 6y ago
An "unstable society" and "high inflation" or two very different things. Bitcoin could easily help (and does in some parts of the world) in the latter case.
In an unstable or even collapsed society things are different. While true that historically gold could be used to buy things it might be at a very depressed buying power or it can be used when dealing with a stable outside society. A hedge for a unstable society is something that actually has "need", for example, antibiotics. Even then, once violence is a standard part of life and interactions the usual calculus of interactions changes.
History provides examples for societies that kind of collapse but sort of kept going on money surrogates that could get daily necessities at a high price; history also has examples for the violent kind of collapse/instability and there I would not count on bitcoin or gold to help absent access to violence.
- jariel 6y agoBTC would be a bad choice in any unstable economy or high inflation. A much better choice in the case of high inflation, would be the currency of the nearest large country i.e. USD, Euros, Pound. Possibly RMB. You get a free financial system, just without the monetary policy until the country can get moving again. BTC doesn't provide any value whatsoever as it's by design a terrible medium for exchange, and not a very good store of value. There is no situation where BTC is useful whereupon there are not already many better solutions.