[2019-08-28] Bitcoin And Cryptocurrencies Are A Hedge For Bad Government

cr1776

legendary

Activity: 4228

Merit: 1313

Quote from: 1Referee on October 14, 2019, 04:22:26 AM

Quote from: avikz on October 13, 2019, 10:49:58 PM

It seems like the people of Hong Kong are trying to safeguard their wealth where no government can intervene!

Something they should have done years ago already because these problems aren't new to them. It was only a matter of time before the bomb would explode the way it did in recent times, and they can only blame themselves for not having taken any precautions sooner.

I really hope that they will keep hoarding Bitcoin and not unload it when the situation there calms down, because there is enough empirical evidence that nothing will change and the same will happen over and over again. Too bad common joes are easily convinced that the situation this time will be different. This is how they burn themselves time on time again. Undecided

This is THE time to hoard Bitcoin because it won't take long before China will find a way to subject HK to such strict financial rules, that people won't even be able to move a penny out of the country or to any entity they deem to be a potential threat.

You are exactly right. And it isn't just China either. There are countries all over the world who have politicians who are looking to rob Peter to pay Paul and buy Paul's votes in the process. People who are smart the world over should prepare for them to come for your assets.

Just look at Warren, Bernie, Biden et al.

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: avikz on October 13, 2019, 10:49:58 PM

It seems like the people of Hong Kong are trying to safeguard their wealth where no government can intervene!

Something they should have done years ago already because these problems aren't new to them. It was only a matter of time before the bomb would explode the way it did in recent times, and they can only blame themselves for not having taken any precautions sooner.

I really hope that they will keep hoarding Bitcoin and not unload it when the situation there calms down, because there is enough empirical evidence that nothing will change and the same will happen over and over again. Too bad common joes are easily convinced that the situation this time will be different. This is how they burn themselves time on time again. Undecided

This is THE time to hoard Bitcoin because it won't take long before China will find a way to subject HK to such strict financial rules, that people won't even be able to move a penny out of the country or to any entity they deem to be a potential threat.

avikz

legendary

Activity: 3080

Merit: 1500

Quote from: Carlton Banks on August 28, 2019, 05:32:26 PM

supposedly, people in Hong Kong are now using Bitcoin in greater numbers in case the Chinese government try shutting protestors' bank accounts. and to undermine government control of the HKD, perhaps

I was just about to say that! After the Hong Kong population started their protest against land-greedy Chinese government, the p2p volume have reached to a new height through localbitcoins. Read the reference below,

https://beincrypto.com/localbitcoin-trading-volume-in-hong-kong-spikes-to-highest-levels-ever-recorded/amp/

It seems like the people of Hong Kong are trying to safeguard their wealth where no government can intervene!

Kyraishi

hero member

Activity: 952

Merit: 513

Quote from: Kemarit on August 28, 2019, 04:59:37 PM

So far the best test cases here is the Venezuelan crisis.

Venezuelans are really going into bitcoin and seek refuge, their Bolivar is useless. Just look at the record volumes in Localbitcoin, week after week they are breaking their own record so no doubt that Bitcoin is being used heavily in countries where there is a social and political turmoil.

It won't be anything super long term though, BTC can't be used as a government's main currency forever, they are going to make their way back after everything is more stable, but it definitely is a good example of it being used.

Quote from: Kakmakr on September 30, 2019, 03:44:19 AM

Bitcoin is not just a hedge against bad governments, it is a hedge against bad economic decisions made by private financial institutions like Banks and investment firms. These institutions are directly linked to bad economic and political decisions that are made by government officials and it influences everyone when these people make these bad decisions. Angry

You have to exit this system and use alternative investment tools and currencies to hedge against their impact when they fail. Bitcoin was meant to be that alternative for people who wanted to exit that system. Unfortunately 3rd party services pulled many of those people back into that regulated system. Angry

This is perfect, exactly what I mean - there's nothing much to add here, except that only with the influence of decentralization and more mainstream adoption, we'll be able to see a better society, that isn't full of corruption.

cr1776

legendary

Activity: 4228

Merit: 1313

Quote from: Kakmakr on September 30, 2019, 03:44:19 AM

Bitcoin is not just a hedge against bad governments, it is a hedge against bad economic decisions made by private financial institutions like Banks and investment firms. These institutions are directly linked to bad economic and political decisions that are made by government officials and it influences everyone when these people make these bad decisions. Angry

You have to exit this system and use alternative investment tools and currencies to hedge against their impact when they fail. Bitcoin was meant to be that alternative for people who wanted to exit that system. Unfortunately 3rd party services pulled many of those people back into that regulated system. Angry

I'd also add it is not just a hedge for bad government or bad economic decisions by private financial institutions, but it is even more so a hedge against bad governing philosophies that overarch all these things, specifically anti-liberty, authoritarian philosophies (socialism, fascism, communism, dictatorships etc). These anti-freedom philosophies enable both bad government and public backstopping bad private decisions.

This goes from corporations like Countrywide making bad loans, to individuals making bad economic decisions (e.g. picking political science as a major vs accounting, engineering, medicine or law) and going into a lot of debt, then these corporations or people expect someone else to pay the bills for their own poor decisions. Socialization of risk and bad decisions under any type of authoritarian system that forces one person to pay for another is evil and something that bitcoin can help to end via the bitcoin hedge.

This explains why many in government do not like it because it begins to remove people and their money from the control of the power-hungry politicians.

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

Bitcoin is not just a hedge against bad governments, it is a hedge against bad economic decisions made by private financial institutions like Banks and investment firms. These institutions are directly linked to bad economic and political decisions that are made by government officials and it influences everyone when these people make these bad decisions. Angry

You have to exit this system and use alternative investment tools and currencies to hedge against their impact when they fail. Bitcoin was meant to be that alternative for people who wanted to exit that system. Unfortunately 3rd party services pulled many of those people back into that regulated system. Angry

aces777

sr. member

Activity: 686

Merit: 250

I wouldn't disagree with at all. A lot of persons are trying to seek refuge against bad government, and has found investing in cryptocurrencies as an alternative for that. Some countries are in a phase of inflation or would soon be, and some investors see investing in cryptocurrency as a way of boycotting it for themselves, and I believe that is a good enough idea. Fair enough

cr1776

legendary

Activity: 4228

Merit: 1313

Quote from: Carlton Banks on August 29, 2019, 08:25:55 AM

Quote from: cr1776 on August 29, 2019, 08:14:26 AM

there is no place that is safe from power hungry, inflation loving central bankers plus the power hungry politicians who are more than willing to sell their citizens out in order to enrich themselves.

let's not forget that there are citizens who'll sell out fellow citizens also, especially in pressured circumstances.

when the built-up problems in the centralised manipulated markets are finally and fully released, there's gonna be some desperate people out there, that could be much more amoral than you remember them before the mother of all recessions.

Agreed. There are lowlifes all over the place.

joelsamuya

member

Activity: 532

Merit: 41

https://emirex.com

Quote from: Kemarit on August 28, 2019, 04:59:37 PM

So far the best test cases here is the Venezuelan crisis. Venezuelans are really going into bitcoin and seek refuge, their Bolivar is useless. Just look at the record volumes in Localbitcoin, week after week they are breaking their own record so no doubt that Bitcoin is being used heavily in countries where there is a social and political turmoil.

Yes, the country of Venezuela has become the poster kid for the use of Bitcoin amidst a chaotic government under a sliding national economy whose national currency has been terribly affected by a runaway inflation. It can then be safely concluded that whenever a country is undergoing sever stress economically and politically, Bitcoin can take the center stage and be there for people who are interested to protect their wealth and avail of services and products that can be available only paying the cryptocurrency.

Carlton Banks

legendary

Activity: 3430

Merit: 3080

Quote from: cr1776 on August 29, 2019, 08:14:26 AM

there is no place that is safe from power hungry, inflation loving central bankers plus the power hungry politicians who are more than willing to sell their citizens out in order to enrich themselves.

let's not forget that there are citizens who'll sell out fellow citizens also, especially in pressured circumstances.

when the built-up problems in the centralised manipulated markets are finally and fully released, there's gonna be some desperate people out there, that could be much more amoral than you remember them before the mother of all recessions.

cr1776

legendary

Activity: 4228

Merit: 1313

Everyone world-wide should own some crypto because there is no place that is safe from power hungry, inflation loving central bankers plus the power hungry politicians who are more than willing to sell their citizens out in order to enrich themselves.

Venezuela and Hong Kong are great current examples of why the time to prepare is well before the storm hits.

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: Kemarit on August 28, 2019, 04:59:37 PM

Venezuelans are really going into bitcoin and seek refuge, their Bolivar is useless. Just look at the record volumes in Localbitcoin, week after week they are breaking their own record so no doubt that Bitcoin is being used heavily in countries where there is a social and political turmoil.

The volumes in VES are increasing week after week, but it's not that we're looking at a whole lot of volume when you calculate it back to the dollar.

Their highest ever weekly volume in VES is 77.5 billion, which in dollars is $4.5 million or 500BTC. In dollar terms it's lower than the dollar volume Venezuela was generating back in Q1 of this year, all because the VES keeps losing value against the dollar. Another thing is that we don't know what these coins are being used for. I'm pretty certain that speculation accounts for at least half of that.

If we switch to volume in BTC, then it's going down constantly, which means that fewer coins are being traded back and forth.

Carlton Banks

legendary

Activity: 3430

Merit: 3080

supposedly, people in Hong Kong are now using Bitcoin in greater numbers in case the Chinese government try shutting protestors' bank accounts. and to undermine government control of the HKD, perhaps

Kemarit

legendary

Activity: 3080

Merit: 1353

So far the best test cases here is the Venezuelan crisis.

Venezuelans are really going into bitcoin and seek refuge, their Bolivar is useless. Just look at the record volumes in Localbitcoin, week after week they are breaking their own record so no doubt that Bitcoin is being used heavily in countries where there is a social and political turmoil.

CryptoBry

sr. member

Activity: 1008

Merit: 355

There's been a lot of news recently, especially with the advent of a news cycle focused on a potential recession, on the role of bitcoin and cryptocurrencies from a short-term investment perspective. Some have placed bitcoin and cryptocurrencies in the category of hedges, a form of digital gold or silver that can be used to store value through inflation and the debasement of fiat currency.

Yet that misses the forest for the trees. Bitcoin and cryptocurrencies at scale are not just a hedge for inflation and an ever-expanding monetary supply -- they are a fundamental hedge against bad governance and bad governments. In this respect, it may be easier to evaluate them along a longer-term horizon then just a short-term store of value.

Read more here...

I think this point has already been proven a lot of times. In countries where people are experiencing some big difficulties due to wrong economic policies made by their political leaders, Bitcoin can be acting like a safe haven for the people, protecting wealth in the midst of runaway inflation rates and sliding national currencies. We should then not wonder why there are many politicians who can be against the use of Bitcoin as it can in many ways undermine their many misguided plans.

Topic: [2019-08-28] Bitcoin And Cryptocurrencies Are A Hedge For Bad Government (Read 230 times)