4 ms·

Something something hedge against 4% YoY inflation

bko 5y ago
Not everyone in the world lives in an economy that has 4% YoY inflation. And not everyone has access to financial services or a developed banking sector
- yunohn 5y ago
  But almost everyone with Bitcoin live in low-inflation developed countries.
  - sueders101 5y ago
    That’s incorrect. If I’m remembering correctly Nigeria was the second largest Bitcoin market pretty recently.
    - 8note 5y ago
      Second largest doesn't mean large. That could be anywhere from 1 person has a bit coin in Nigeria to just under half the bitcoins
- dragontamer 5y ago
  If you don't have a financial service / developed banking sector, how do you get your local currency into BTC and back? Mt. Gox proved that you can't just trust random exchanges. Even in the best of times, the exchange can get hacked and all the holdings disappear.
  - jeltz 5y ago
    It is not that easy to do even in many countries with a developed banking sector. Bitcoin is very impractical as a currency.
- riffraff 5y ago
  sure, but let's say that you're in Turkey, and very worried about your currency devaluating 17% every year. Does putting your money in something that can devaluate 30% in a day sound like a better solution?
  - mavhc 5y ago
    As long as you can wait long enough it should always go up, because there's 3 built in methods of deflation. Which also means you should never sell bitcoin.
    - almost_usual 5y ago
      So you should never use your wealth in the best case scenario. What’s the point?
  - gojomo 5y ago
    If you're interested in a long-term hedge, and all the 30% down-days are eventually offset by a soild long-term up-trend: yes, sure, why not? If asset A reliably loses 4% of its value per year, in a totally-predictable straight-line, and asset B has wild up- and down-swings, but over years reliably delivers 25% appreciation per year - asset B is better, unless you'll be forced to urgently sell at unpredictable times. (And if you can find a basket of uncorrelated B-like assets, all the better!)
- robjan 5y ago
  If you're from an undeveloped country you probably can't afford the huge transaction fees and wild swings in price
tryptophan 5y ago
Do stocks, commodities, real estate, etc... not work anymore?

bko 5y ago

Not everyone in the world lives in an economy that has 4% YoY inflation. And not everyone has access to financial services or a developed banking sector

yunohn 5y ago
But almost everyone with Bitcoin live in low-inflation developed countries.
- sueders101 5y ago
  That’s incorrect. If I’m remembering correctly Nigeria was the second largest Bitcoin market pretty recently.
  - 8note 5y ago
    Second largest doesn't mean large. That could be anywhere from 1 person has a bit coin in Nigeria to just under half the bitcoins
dragontamer 5y ago
If you don't have a financial service / developed banking sector, how do you get your local currency into BTC and back? Mt. Gox proved that you can't just trust random exchanges. Even in the best of times, the exchange can get hacked and all the holdings disappear.
- jeltz 5y ago
  It is not that easy to do even in many countries with a developed banking sector. Bitcoin is very impractical as a currency.
riffraff 5y ago
sure, but let's say that you're in Turkey, and very worried about your currency devaluating 17% every year. Does putting your money in something that can devaluate 30% in a day sound like a better solution?
- mavhc 5y ago
  As long as you can wait long enough it should always go up, because there's 3 built in methods of deflation. Which also means you should never sell bitcoin.
  - almost_usual 5y ago
    So you should never use your wealth in the best case scenario. What’s the point?
- gojomo 5y ago
  If you're interested in a long-term hedge, and all the 30% down-days are eventually offset by a soild long-term up-trend: yes, sure, why not? If asset A reliably loses 4% of its value per year, in a totally-predictable straight-line, and asset B has wild up- and down-swings, but over years reliably delivers 25% appreciation per year - asset B is better, unless you'll be forced to urgently sell at unpredictable times. (And if you can find a basket of uncorrelated B-like assets, all the better!)
robjan 5y ago
If you're from an undeveloped country you probably can't afford the huge transaction fees and wild swings in price

tryptophan 5y ago

Do stocks, commodities, real estate, etc... not work anymore?