Nostr Web Client

In short, A $1M Bitcoin price could cause sudden inflation and weaken the fiat currency system especially in poor countries, leading to economic instability and a collapse in the value of local currencies. This could worsen wealth inequality and harm those who rely on fiat currencies as their primary means of exchange and store of value.

A gradual shift over years if not decades, not days, or we will all become forced sellers.

[781275]

fp 2y ago

But fiat is not a store of value. All the ppl you are concerned about are encouraged to “spent it all” and not save. If they do save it loses values. They are incentivized to buy the biggest house they can afford, because it is the only vehicle to kinda win… unless you remember they need to buy another house after they realize gains on a sale. The only ppl that win in this system are the ones that find a way to “opt out” by moving to a substantially lower COL area.

They should save in bitcoin, no matter how small. It is the only way forward regardless of the trajectory of the fiat currency system.

Reply to this note

Please Login to reply.

Discussion

Merrcurr⚡️ 2y ago

fiat is perceived as a store of value in countries that do not enjoy the privileges you are mentioning your narrative is correct seen from the lens of the "west". Location arbitrage allows you to plan in such a way but the majority of the world we live in would dream of the USD instead of their local currencies still, many have recognized the need to spread Bitcoin education and enable access in those parts of the world. This is where Bitcoin has the most opportunities to thrive.

[781279]

fp 2y ago

Saving still do not exist without losing value, right?

Merrcurr⚡️ 2y ago

For the majority in the other 180+ countries, saving is a luxury. Inflation is the killer, today they would rather own USD than their own currency and USD is hard to come by, scarce, desirable to them. If they could save right now they would in USD. Bitcoin is still a very foreign concept. Risk tolerance is zero for these populations, it must first be an integral part of society before being remotely considered as an alternative.

[781283]