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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.

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Discussion

IntuitiveGuy☯️ 2y ago

Reading this I am imagining how pleasant would be then visiting a Citadel with Bitcoin standard in the future..

Thanks for making me dream Jimmy 💜🙏🍀💜

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.

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.

Will Cole 2y ago

I get that part, but what about the part where hyper inflation also means few residences with power. It’s hell.

jimmysong 2y ago

They all adjust. Lebanon buildings all have their own generators. It just takes time.

Merrcurr⚡️ 2y ago

Not all buildings unfortunately, just the fancy ones. Most will have to live without electricity most of day or get portable generators on the black market

[780859]

Sats paa BTC 2y ago

Please don't glorify Lebanon.

There is lack of power everywhere which especially is hard on the poor. Food spoils very quickly, when it is not refrigerated, you can't get medicine anywhere, the costs for medical treatment, let alone hospitalization are exploding, and within two years the number of people living under the line of poverty went from 20% to ober 80%.

Yes, the Lebanese are survivors, but I wouldn't wish this for anyone.

BoomTown 2y ago

This means their power cost is much higher than it should be. Or the government subsidizes diesel and generator imports (like they do in Nigeria) which is also inefficient.

Bitcoin is supposed to make markets efficient … while some of what you’re experiencing and sharing probably is true, I wonder what a truly sound money separated from the state ultimately yields in terms of major infrastructure build outs and critical utility infrastructure. 🧐

mchotbot 2y ago

People are taking notice of your post.

Added to the https://member.cash/hot feed

Eduardo Prospero 2y ago

Makes sense.

It was great having you here, Mr. Song.

Juan Carlos 2y ago

True

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