4 ms·
To add to what xtracto said, I live in Argentina and our currency has an annual inflation rate of 50% (it's actually higher, but I'll stick to official numbers)
by kobalsky 5y ago
To add to what xtracto said, I live in Argentina and our currency has an annual inflation rate of 50% (it's actually higher, but I'll stick to official numbers).
Banks here have a bad history of keeping your foreign currency deposits when things go south and then converting your balance at a government mandated exchange rate, which was a fraction of the real value (think 1/10 of the real value).
Now, the government can always make cryptos illegal, but news like OP show that globally we moving towards regulation instead of prohibition, so for now cryptos are were we can still take refuge.
So here you can either keep your savings in a currency that evaporates, buy real state at insanely high price because that's where big money is stored, illegaly purchase foreign currency and physically hide it somewhere like a criminal, our you can legally purchase crypto and keep it safe outside the reaches of our governments and banks.
- onlyrealcuzzo 5y agoWhy can't you just invest in an index fund or a money market fund?
- kobalsky 5y agoit's literally easier to move your money overseas to an international broker than to try to operate here, which is what people with enough money do. we tried to invest some backup cash we had in a company here a couple a years ago and it was a nightmare. the only way to operate was through phone calls. EDIT: I read a bit to the check the current state of affairs and it's still complicated, and apparently there is a currency conversion process that is hit by a very heavy fee. Something similar happens with credit cards, when we pay for a service or product in a foreign currency we get charged a 65% tax that puts the official USD exchange rate in line with the real one.
- burnished 5y agodo you use crypto for daily purchases, like going to a corner store or buying groceries, or is it more informal and a way to transfer money between friends? Or is it a store of value and you liquidate some periodically for purchases? Also thank you for educating me, this makes much more sense than anything from my perspective.
- herbst 5y agoNot op. But I do buy groceries with crypto. Amazon is kinda irrelevant around here (Switzerland) and the biggest local competitor accepts crypto for several years now. Some places even accept it for taxes. I rarely used to for P2P transfers, but I find crypto super useful for online shopping.