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How is it different? How many goods and services can you pay for with cryptocurrency where you live? What if your government's goons (or private goons for that

by aorth 5y ago

How is it different? How many goods and services can you pay for with cryptocurrency where you live? What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins? Who will help you?

disruptalot 5y ago
You don't need to buy goods and services directly but it is a good way to store and invest your wealth. Most capital controls are mute once you've exited into crypto. On what basis do they hit you? Anyone that ever has any link to crypto? That's everyone. Crypto has a level of security and plausible deniability, that makes such things unrealistic. That's why you don't hear about it happening often. To many people under these regimes, there is much more security afforded to them by crypto than by their governments and currencies.
- agumonkey 5y ago
  Understandably its a lot nicer to know your money doesn't evaporate.
- nroets 5y ago
  Just to add that many South Africans are importing and reselling crypto through a legal loophole. [1] Only "exporting" crypto is illegal. There are highly liquid international markets for our currency vs other fiats. The government has relaxed capital controls substantially over the last 20 years. Right now the focus of government is taxing crypto. Capital controls are taking a back seat, because enough Dollars are coming into the country to pay for imports. External debt is minimal. [1]: https://www.ovex.io/blog/crypto-arbitrage-101/ https://www.ovex.io/blog/crypto-arbitrage-101/
- singularity2001 5y ago
  >>> it is a good way to store and invest your wealth until it goes to literally zero, which IMHO seems more likely every month
  - scrose 5y ago
    It’s likely that the alternatives also run a similar risk with less upside.
csomar 5y ago
> How is it different? You don't get 50% dilution of your savings within a year. > How many goods and services can you pay for with cryptocurrency where you live? In a liquid market, you can convert your weekly needs and pay using cash. > What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins? If they are going to do that (and some countries do that), they'll start with bank accounts and visible shit (goods moving in the street).
- EliRivers 5y ago
  You don't get 50% dilution of your savings within a year. Although if you're measuring bitcoin against the USD, you could have done that in May :)
  - xur17 5y ago
    BTC isn't the only option if you are using crypto. Especially in emerging markets, stablecoins seem to be a popular choice.
  - splintercell 5y ago
    The article implies that almost all of this cryptocurrency is in USDT,So that argument doesn’t apply.
  - csomar 5y ago
    Currencies inflate only. Bitcoin fluctuates. It's not the same kind of exposure. (though a consumer might have a hard time catching the upside and avoiding the downside).

by aorth 5y ago

disruptalot 5y ago

You don't need to buy goods and services directly but it is a good way to store and invest your wealth. Most capital controls are mute once you've exited into crypto. On what basis do they hit you? Anyone that ever has any link to crypto? That's everyone. Crypto has a level of security and plausible deniability, that makes such things unrealistic. That's why you don't hear about it happening often. To many people under these regimes, there is much more security afforded to them by crypto than by their governments and currencies.

agumonkey 5y ago
Understandably its a lot nicer to know your money doesn't evaporate.
nroets 5y ago
Just to add that many South Africans are importing and reselling crypto through a legal loophole. [1] Only "exporting" crypto is illegal. There are highly liquid international markets for our currency vs other fiats. The government has relaxed capital controls substantially over the last 20 years. Right now the focus of government is taxing crypto. Capital controls are taking a back seat, because enough Dollars are coming into the country to pay for imports. External debt is minimal. [1]: https://www.ovex.io/blog/crypto-arbitrage-101/ https://www.ovex.io/blog/crypto-arbitrage-101/
singularity2001 5y ago
>>> it is a good way to store and invest your wealth until it goes to literally zero, which IMHO seems more likely every month
- scrose 5y ago
  It’s likely that the alternatives also run a similar risk with less upside.

csomar 5y ago

> How is it different? You don't get 50% dilution of your savings within a year. > How many goods and services can you pay for with cryptocurrency where you live? In a liquid market, you can convert your weekly needs and pay using cash. > What if your government's goons (or private goons for that matter) hit you with a rubber hose and steal your coins? If they are going to do that (and some countries do that), they'll start with bank accounts and visible shit (goods moving in the street).

EliRivers 5y ago
You don't get 50% dilution of your savings within a year. Although if you're measuring bitcoin against the USD, you could have done that in May :)
- xur17 5y ago
  BTC isn't the only option if you are using crypto. Especially in emerging markets, stablecoins seem to be a popular choice.
- splintercell 5y ago
  The article implies that almost all of this cryptocurrency is in USDT,So that argument doesn’t apply.
- csomar 5y ago
  Currencies inflate only. Bitcoin fluctuates. It's not the same kind of exposure. (though a consumer might have a hard time catching the upside and avoiding the downside).