Topic: R u consider rich holding crypto during hyper inflation - page 2. (Read 513 times)

At times of hyper inflation the value of bitcoin too will decrease, because in some form it is dependent on the physical fiat. Maybe we can say that bitcoin is independent and doesn't get affected by any of the external forces. In reality this isn't the same with the value decline of USD there will be some change if there is inflation. I don't find reason for such inflation to happen around.

Sort of. Depends on dollar as well. For example if you live in Venezuela (or any third world country like Zimbabwe and so forth) dollar also gains value, so instead of holding bitcoin if you had dollars in your pocket during the hyper inflation than you already made a lot of profit and considered rich.

When everything is going perfectly having 100 dollars in your pocket is not a huge amount but when your 100 dollars that you stored just in case gains about x100 or more in value than you could be considered "rich", not in the sense that your 100 dollars will buy you multiple houses but at least you could get some more food than other people. Same applies to bitcoin or euro or sterling and so forth. Having a foreign currency whatever it is will help you out a lot.

I feel bad for the people of Venezuela as well but bitcoin was created to help people in those desperate circumstances, when there is hyperinflation the most valuable commodity is not food or water, it is money itself, if you have a form of money that is not losing its value at an incredible speed you have a huge advantage so anyone with access to dollars, gold or bitcoin can protect the value of their efforts and can exchange their money for a premium as everyone wants the money that person is holding.

You may not that be sort of rich person but you will be able to survive in this economic crisis if you have saved the value of your money through bitcoin.

Feeling so bad for the Venezuelans, I've seen too many posts about money being thrown in the streets.

Since money value would drop drastically in your country everyone living there would consider themselves poor. So the answer to your question is yes, because you have invested your money and during the inflation period the value of your bitcoin remains the same.

Is it not a good idea to buy and hold crypto currencies during hyper inflation. I say yes. A good move from the citizen side. The crypto will certainly support when their local fiats doesn't. Right? Obviously they become rich when they hold crypto with high values when their local currency has lost its value during inflation.

It is not the right term to use rich. Why? Because it just happens that you comes to be a lucky one when you hold a cryto currencies before your currencies experience hyper inflates. Well this is one thing that is too bad to happen for every individuals but also, gives the chance for the crypto currencies to saves its owner in times like this. If this happens to you, then, you could be say to be a smart and very futuristic crypto investors.
This saves an individual from bring his or her entire life from top to nothing.

If hyperinflation happen, i am agree we should not holding paper money or fiat, i am prefer holding Gold or bitcoin. Bitcoin already recognized as digital asset and i think if hyperinflation happen, people will hold gold and bitcoin

In hyper inflation you just dont hold that  currency. You or spend your salary fast. Or exchange your salary into other currency or even gold. Yes Bitcoin can help here.  I lived as a kid in a country with quite high inflation. It was for a year or so and was even 100% a month. I remember there were traders standing in front of a bank. So when dad got salary he went in bank to pick it up and right outside of bank exchanged it for some other convertible currency. People adapt. Or you just went and buy something. a TV or something. You did not wait a month so you could get only half TV for same salary. People are not stupid.

You don't understand why we have crashed 6 or more times. I'm not even counting that. It has nothing to do with holders.
Most of the holders were people who survived bear markets and are sure bitcoin will never go back to the levels at which they held. If they were able to hold then they will be today whatever happens.

People who bought Bitcoin in December 2017 came with the intent of selling for a profit. Most of them bought because somebody they know bought earlier in 2017 and made money. They sold at the first sight of danger or lost money and sold too late.

It’s the amount of crypto own before the hyperinflation that would determine how rich one would be. For instance someone who would have purchased enough crypto before hyperinflation can be lucky because it would be attached to USD.

Now, whatever that makes inflation start at Venezuela , the ability to buy usd will then go down and  the person who has owned crypto would be lucky because he would not need as much UsD to buy Venezuela currency like it would have been before the hyper inflation

$3000 was seen as insane prediction by many just a year ago. What do you mean holders have a negligible effect on the price? We are making obvious progress, every time we crash, we bottom at higher prices, then we start the journey to a new ATH. It's obvious it's going to be extremely volatile but it's the holders of last resort that matter. As far as supply keeps shrinking and the demand for the only unconfiscable asset on earth is there then the price will inevitably go up long term. It's going to take a while, these market cycles get heavier to move with every new ATH due the higher marketcap.

Well, it doesn't work any more

It is surprising to see anyone actually believing in this kind of thing now, i.e. that holders diminish the supply and this leads to higher prices. I understand when people were telling this prior to 2018 as it did actually look like that back in the day. But now that we have crashed 6 times, there is enough evidence that whatever effect holders may have on price, it is negligible. Supply may in fact diminish but that doesn't mean higher prices

BEFORE the hyper inflation it is definitely a thing, look at my own country for example, because of the inflation the bitcoin prices went from $6.5k to $3.5k but we only lost about 10% of the total loss instead of the full version since the dollar value of it increased in our country.

Basically, the inflation is something that makes you poor very quickly and everything in your country worth x10 of what they used to, if you hold your own currency at that time then there is no way you can actually move to bitcoin afterwards however if you hold bitcoin beforehand and before the inflation begins then you have a shot at becoming very rich very quickly while everyone stays poor. While people have hard time buying and selling stuff you will be capable of living an alright life.

This is based on the assumptions that bitcoin's price at the time of hypee inflation in a country remains stable or moves upwards against the US dollars which it is tied to.
You would equally be considered to be losing money should bitcoin drop with the national currency remaining the same. Both scenarios would not matter unless you convert.

This is exactly what is going on here. Once the spiral starts, its too late. If someone bought and hold before it started, sure it could be considered "rich", but for people working and earning wages in that fiat, and spending most of it in daily necessities, there was little incentive to have savings in "unknown thing" before, and now there is too little money to buy "unknown thing" to be of any worth short of escaping the rapid devaluation momentarily (until you need to actually use it, in a span of days).

Think of it: the average Venezuelan (if employed) earns the equivalent 8 USD a month, its already insufficient for food alone, where is he/she going to take from to purchase bitcoin? But if this person doesn't do it, within a month (everyday faster) that would have the power purchase equivalent to 4 USD.

So you can't do it but you must do it...

Before: You didn't feel the need to do it, so you didn't.

Don't wait until its too late. And always diversify your investments if unsure...

---

VEF was replaced with VES in September 2018. 1 VES = 100,000 VEF. Not even 6 months have passed and the 1 VES coins and 2 VES banknotes are getting rejected by people. The largest banknote is 500 VES which is currently about 20¢ in (USD). Debit card is a must have. Banks limit cash withdraws to 1000 VES (40¢) per day, and if you are unlucky, even less than that. It is rare to find an ATM with actual money in it, and its limited even more.

Cryptocurrencies during hyperinflation are a replacement for the national currency, which becomes totally worthless. And this can be good proof, that currencies can be replaced by Bitcoin or other cryptos.

it only applies when hyper inflation occurs, the assets we store in crypto form certainly do not change too bad only when the currency is paired with VEF, it is just the same as VEF got hyper inflation, so if they didn't want get that, it must be converted to USD or other

It depends on how much crypto did you owned in the first place. If you converted your crypto already to fiat then you can call yourself a rich person already but if not then it's no use since you were just holding bags. But in the long run, if your crypto would grow tremendously just like what happens to Bitcoin then you may be one of the whales these days.

It is worth noting that this relation of inflation and debts is often what causes hyperinflation in the first place; ie. a government simply increasing inflation to lessen their debt burden.