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Indeed. And you get a massive return for investing in dollars, if your own currency has say hyper-inflation. "I exchange my local currency for a USD and in a
by goldcd 5y ago
Indeed.
And you get a massive return for investing in dollars, if your own currency has say hyper-inflation.
"I exchange my local currency for a USD and in a year when I want to buy something I can exchange it back for twice as much local of currency"
Not massively different to investing in BTC today, in the hope that you can convert it back for more of your local currency when you want to spend it.
- notahacker 5y agoYou get a massive return in local currency from holding onto virtually any asset other than local currency or local currency denominated debt if your own currency has hyperinflation. People overseas want dollars because dollars are extremely easy to transact with and many companies [especially outside their country] accept only dollars, not because a price graph and a tweet from Elon Musk have convinced them that dollars will be even more popular next year. The actual mechanism that ensures many of these companies will continue to accept dollars next year is financial obligation, not hype.
- jonfw 5y agoWhy USD when you can hold an asset? Maybe if you live in a place where liquid assets are hard to come by I could see using USD instead