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Thank you for this comment, I was about to post something very similar. The thing about hyperinflation is that people are hypnotized by the many zeros that are
by nhaehnle 13y ago
Thank you for this comment, I was about to post something very similar. The thing about hyperinflation is that people are hypnotized by the many zeros that are involved and ignore the underlying root causes.
Zimbabwe suffered economically for reasons entirely unrelated to hyperinflation. Hyperinflation was just a kind of release valve for the economic mess that already existed before it started. Had Zimbabwe used Bitcoin at the time [0], the well-intended but badly implemented land reform would still have caused economic collapse and wide-spread suffering. The symptoms would have been slightly different, but they would have been just as bad.
The same could be said for the Weimar republic hyperinflation of the 1920s, by the way. Hyperinflation was a release valve for the economic problems that Germany was already in, and ultimately helped demonstrate that the war debts imposed from World War I were onerous and should be forgiven. Arguably, using Bitcoin would have made the long-term situation worse for Germany back then.
[0] Obviously completely hypothetical since Bitcoin did not exist, but that's beside the point.