3 ms·

Inflation is a symptom, not the cause. Not sure how Argentinians are supposed to do better using cryptocurrencies.

froblesmartin 3y ago
Well, at least you can save and not be in the need to spend your money soon, as it then devalues quickly, which helps to stop inflation :D They could just search € or USD, which they do :D But the government used to have a cap of 200$ per person and month to exchange (not sure if that still happens now with Milei)
- Wytwwww 3y ago
  On the whole income be significantly lower because the state couldn't afford to pay them as much (or at all) anymore.
- pjc50 3y ago
  The inflation is still a symptom of the balance of payments problem. What cryptocurrency lets you do is evade the capital controls and get closer to dollar-referenced currency.
GaryNumanVevo 3y ago
They'd be better off holding literally any _other_ currency. US dollars are hard to get in large quantities, and you'd be stuck holding a lot of cash. Bitcoin (or any crypto currency, BTC isn't unique here) is just easier to buy and hold as a hedge against inflation
- thriftwy 3y ago
  I've never seen issues with obtaining any required quantity of physical US dollars cash, and that includes 2022 Russia.
7thaccount 3y ago
There is no federal agency or corporation that can inflate Bitcoin like Argentina's central bank has been doing. This is the major cause of inflation.
- epolanski 3y ago
  Currency was inflated to avoid defaulting on payments on debt. So again, this is really a symptom of a deeper problem.
  - 7thaccount 3y ago
    Regardless, you can't print more Bitcoin. With regards to out of control spending, I think Milei is trying to get that under control. No idea if it'll work though.
    - littlestymaar 3y ago
      People are usually being hurt harder by deflation than by inflation though, and it's demonstrably the best way to get overthrown (which usually doesn't happen with inflation) by a lunatic dictator. (Weimar Republic gets a bad rap for its hyperinflation period, but it survived it, and in the end that's Brüning's *deflation* in 1930-32 that caused the eventual demise of the republic and the birth of the 3rd Reich). The kind of intermediate-level inflation (not tour typical inflation, but also not hyperinflation) that exists in Argentina (or Turkey for that matter) is typically caused by governments addressing underlying problems by driving inflation up (it's not an unintended consequence of poor monetary policy, they aren't oblivious). Sure it's not nice, but the problem is: how do you solve the underlying problem anyway. If you just say “I'm gonna play the "strong money" card no matter what” you're not solving the problem, you're tying your own hands and now you have two problems. Be careful what you wish for.
      - 7thaccount 3y ago
        Agreed that deflation is scary and things can spiral out of control. Just hyperinflating forever though seems to just be making the pop of the bubble that much worse.

Well, at least you can save and not be in the need to spend your money soon, as it then devalues quickly, which helps to stop inflation :D They could just search € or USD, which they do :D But the government used to have a cap of 200$ per person and month to exchange (not sure if that still happens now with Milei)

Wytwwww 3y ago
On the whole income be significantly lower because the state couldn't afford to pay them as much (or at all) anymore.
pjc50 3y ago
The inflation is still a symptom of the balance of payments problem. What cryptocurrency lets you do is evade the capital controls and get closer to dollar-referenced currency.

GaryNumanVevo 3y ago

They'd be better off holding literally any _other_ currency. US dollars are hard to get in large quantities, and you'd be stuck holding a lot of cash. Bitcoin (or any crypto currency, BTC isn't unique here) is just easier to buy and hold as a hedge against inflation

thriftwy 3y ago
I've never seen issues with obtaining any required quantity of physical US dollars cash, and that includes 2022 Russia.

7thaccount 3y ago

There is no federal agency or corporation that can inflate Bitcoin like Argentina's central bank has been doing. This is the major cause of inflation.

epolanski 3y ago
Currency was inflated to avoid defaulting on payments on debt. So again, this is really a symptom of a deeper problem.
- 7thaccount 3y ago
  Regardless, you can't print more Bitcoin. With regards to out of control spending, I think Milei is trying to get that under control. No idea if it'll work though.
  - littlestymaar 3y ago
    People are usually being hurt harder by deflation than by inflation though, and it's demonstrably the best way to get overthrown (which usually doesn't happen with inflation) by a lunatic dictator. (Weimar Republic gets a bad rap for its hyperinflation period, but it survived it, and in the end that's Brüning's *deflation* in 1930-32 that caused the eventual demise of the republic and the birth of the 3rd Reich). The kind of intermediate-level inflation (not tour typical inflation, but also not hyperinflation) that exists in Argentina (or Turkey for that matter) is typically caused by governments addressing underlying problems by driving inflation up (it's not an unintended consequence of poor monetary policy, they aren't oblivious). Sure it's not nice, but the problem is: how do you solve the underlying problem anyway. If you just say “I'm gonna play the "strong money" card no matter what” you're not solving the problem, you're tying your own hands and now you have two problems. Be careful what you wish for.
    - 7thaccount 3y ago
      Agreed that deflation is scary and things can spiral out of control. Just hyperinflating forever though seems to just be making the pop of the bubble that much worse.