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It's counterintuitive, but the countries undergoing hyperinflation, are often more sound than other countries undergoing normal inflation.

Government, of course, is as fiat as they can be, printing money so they can squeeze out Cantillon benefits, but everyone else adjusts.

Individuals and businesses move to a dollar standard, which in those countries is much harder than their own currency and those on that standard have to create value. They can't just get dollar loans as the risk is too high. Hence, they have to operate from savings and the businesses are a lot more sound and focused on adding value.

For me, this is why Argentina and Lebanon were so pleasant to visit. They avoid as much as possible their governments' debasement and have to operate in a manner that's more legitimate.

Ranjan Grover 2y ago

Can you pay in BTC in either of those 2 countries? You'd think there is an under the table ecosystem that supports that.

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Discussion

jimmysong 2y ago

Not many direct BTC merchants, but plenty of traders that will convert to/from BTC for dollars or local currency. Some will even come straight to your house! Usually they have to carry a lot of the currency because the largest bill is only worth like $2.

21millions🧉₿🇦🇷🫂 | GMT -3 2y ago

Not that much, I think we need 1 more crisis but with Bitcoin as an option to show with the example to those who don't understand the real usecase.

Here (Arg) there is a big chunck of the economy that is informal. Like de-facto agorism, merchants don't know the ideas but if you pay attention to what they Do, they are allways actively avoiding the state one way or another. But people didn't realize to what extent they can be using bitcoin for this, even as a reserve of value (Yet).

But the same way we learned not to trust in the banking system, after a rugpul that showed that having your USDs under the matress was the way, maybe having the next crisis with Bitcoin as an alternative will teach the last thing we are missin go kickstart mass adoption, wich I think can be faster than expected once started.