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by humanrebar 1409 days ago
> as Bitcoin is a world currency it's unlikely would face inflation to the level that the local currency has

If Bitcoin drops in value substantially, that has the same effect to retail shoppers as inflation.

And with all of the bonkers things to happen in the last decade, seeing Bitcoin drop to a small fraction (like 1/10th) of its current value in the next 2-3 years seems unlikely but not entirely out of the question. And that's a pretty big downside when talking about ones' life savings or even ones' emergency fund.

2 comments

But if you’re in a place where this sort of thing is necessary (keeping your money out of government or bank hands), you might be willing to take that risk. Because being able to get some money out of the country, is still far better than having no money. Imagine for a second you had to flee and claim asylum. I think it’s fair to say that this use case for crypto is undisputed.

The major problem with this is that these people have to use systems that’s full of scams and the value of their money is controlled by people in the first world with tons of cash to burn.

Probably some combination of Bitcoin, commodities you could carry on a person (gold? jewelry?), and real-estate (relatively less likely to be taken than cash) is a good plan. But I'm not an expert.
>If Bitcoin drops in value substantially, that has the same effect to retail shoppers as inflation.

Yes, Bitcoin doesn't solve THE inflation problem, it solves one out of many.