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by xcv123 832 days ago
> I honestly cannot understand why crypto exists

https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela

https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

https://www.usinflationcalculator.com

3 comments

> https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela

> https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe

> https://www.usinflationcalculator.com

You are trying to retcon the reason why (e.g.) Bitcoin was created in the first place:

> Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for non- reversible services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.

* https://bitcoin.org/bitcoin.pdf

That's right, but there is a 21 Million BTC supply limit. Would anyone bother to mine these coins if the supply was unlimited?
None of these are reasons why crypto exists
Bold strategy posting about hyperinflation while crypto has more volatility than Marjorie Taylor Greene
What's strange about it? The creator of Bitcoin could not predict that volatility. The inflation of fiat currency is one major reason why crypto exists. Bitcoin has a 21 million BTC supply limit. That's the point.

However even with the volatility, it's way more stable than the Venezuelan currency. Crypto is widely used in Venezuela.

Being better than Venezuelan currency isn’t the slam dunk point you might you think it is.
It is for the Venezuelans. 28 million people were completely fucked by hyperinflation. Life savings destroyed.

The peer to peer network enabled them to circumvent the banking system, which is why BTC was created, according to the original paper.

https://bitcoin.org/bitcoin.pdf