3 ms·

I'm convinced we're already living in a period of hyperinflation or we're very close. Governments can be quite creative in hiding actual inflation numbers (e.g.

by wsc981 5y ago

I'm convinced we're already living in a period of hyperinflation or we're very close. Governments can be quite creative in hiding actual inflation numbers (e.g. by not taking house prices or stock prices into the equation). Once people realise what's happening with their income and savings, perhaps there might start a large movement towards crypto currencies. Also, with crypto ETFs available soon, I suspect institutional investors will also want to divert part of their holdings into crypto, if legally possible to do so.

Nevermark 5y ago
While I am familiar with many useful (or potentially useful) properties of different cryptocurrencies, avoiding investment crashes is most definitely not one of them.
diob 5y ago
We are, it's just that the inflation is only noticeable in assets at the upper tier (housing, stocks, high end electronics, etc). No one is too interesting in buying up all the food, so there hasn't been immense inflation seen there. But I always find it funny that after the money printing in 2008 folks say there was no inflation. Yeah, not in everyday goods that the common folk would notice. But it's getting harder and harder for them to not notice the immense inflation on non everyday assets. The common folk are starting to realize it's impossible to make investments, they've effectively been priced out. I can't imagine it's going to end well.
inglor_cz 5y ago
If this happens, expect a War on Crypto. The militarized police units already need new enemies, as MJ is being legalized all over the U.S.
throw_m239339 5y ago
The first part of your comment is true. The second part of your comment is unrealistic. "Crypto" trading in general is one law away from being banned by every single government on the planet. If the dollar crashes, the Federal government will absolutely go after crypto trading.
- RealityVoid 5y ago
  Hah, imagine the dollar crashing and the fed banning crypto. How do you think that will affect the faith in the US dollar? Even worse! Imagine US bans crypto but other countries go the other way and they lean more on it, and somehow a coin is becoming de facto world reserve currency. Then the US would be left on the outside. Banning crypto sounds to me like banning gold. Kind of ridiculous. Ask China how that is going. Regardless, I think crypto is not there yet. It's not mature enough for us to have that runaway effect. I also do not believe that the US will see _hyper_ inflation. Just ridiculously high inflation.
  - throw_m239339 5y ago
    > Hah, imagine the dollar crashing and the fed banning crypto. How do you think that will affect the faith in the US dollar? Even worse! Imagine US bans crypto but other countries go the other way and they lean more on it, and somehow a coin is becoming de facto world reserve currency. Then the US would be left on the outside. Pretty sure the US government ceased people's gold at some point in the first half of the 20th century.
    - RealityVoid 5y ago
      Just gave it a quick search and you are perfectly right. https://en.m.wikipedia.org/wiki/Executive_Order_6102 https://en.m.wikipedia.org/wiki/Executive_Order_6102 And there is a interesting point on reddit about it: https://www.reddit.com/r/AskHistorians/comments/25wjvv/when_fdr_passed_executive_order_6102_in_1933_were/ https://www.reddit.com/r/AskHistorians/comments/25wjvv/when_... I guess if the US were to ban crypto, it would go down somehow similarly. Not convinced that crypto would drop to 0 though. And the practical challenges of enforcing a crypto ban are... unique.

by wsc981 5y ago

Nevermark 5y ago

While I am familiar with many useful (or potentially useful) properties of different cryptocurrencies, avoiding investment crashes is most definitely not one of them.

diob 5y ago

We are, it's just that the inflation is only noticeable in assets at the upper tier (housing, stocks, high end electronics, etc). No one is too interesting in buying up all the food, so there hasn't been immense inflation seen there. But I always find it funny that after the money printing in 2008 folks say there was no inflation. Yeah, not in everyday goods that the common folk would notice. But it's getting harder and harder for them to not notice the immense inflation on non everyday assets. The common folk are starting to realize it's impossible to make investments, they've effectively been priced out. I can't imagine it's going to end well.

inglor_cz 5y ago

If this happens, expect a War on Crypto. The militarized police units already need new enemies, as MJ is being legalized all over the U.S.

throw_m239339 5y ago

The first part of your comment is true. The second part of your comment is unrealistic. "Crypto" trading in general is one law away from being banned by every single government on the planet. If the dollar crashes, the Federal government will absolutely go after crypto trading.

RealityVoid 5y ago
Hah, imagine the dollar crashing and the fed banning crypto. How do you think that will affect the faith in the US dollar? Even worse! Imagine US bans crypto but other countries go the other way and they lean more on it, and somehow a coin is becoming de facto world reserve currency. Then the US would be left on the outside. Banning crypto sounds to me like banning gold. Kind of ridiculous. Ask China how that is going. Regardless, I think crypto is not there yet. It's not mature enough for us to have that runaway effect. I also do not believe that the US will see _hyper_ inflation. Just ridiculously high inflation.
- throw_m239339 5y ago
  > Hah, imagine the dollar crashing and the fed banning crypto. How do you think that will affect the faith in the US dollar? Even worse! Imagine US bans crypto but other countries go the other way and they lean more on it, and somehow a coin is becoming de facto world reserve currency. Then the US would be left on the outside. Pretty sure the US government ceased people's gold at some point in the first half of the 20th century.
  - RealityVoid 5y ago
    Just gave it a quick search and you are perfectly right. https://en.m.wikipedia.org/wiki/Executive_Order_6102 https://en.m.wikipedia.org/wiki/Executive_Order_6102 And there is a interesting point on reddit about it: https://www.reddit.com/r/AskHistorians/comments/25wjvv/when_fdr_passed_executive_order_6102_in_1933_were/ https://www.reddit.com/r/AskHistorians/comments/25wjvv/when_... I guess if the US were to ban crypto, it would go down somehow similarly. Not convinced that crypto would drop to 0 though. And the practical challenges of enforcing a crypto ban are... unique.