Ninjastic
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Board Economics
Re: Rampant inflation, yet a steady exchange rate.
by
wxa7115
on 07/09/2020, 18:00:46 UTC
Quote from: NavI_027 on September 06, 2020, 12:53:24 AM
Quote from: NotATether on September 05, 2020, 05:12:17 PM
This is part of the reason I started accumulating bitcoins, because it is immune to inflation. I just can't buy anything here with it.
Hmm, if you can't buy anything with btc then it means the adoption of such technology on your country is quite low. Therefore, your btc holding will be pointless if you still need to convert it into your currency first. Sad to say but it will still get affected by the inflation.

And even if you found one, I think it will be all the same. You cannot simply give .005 btc for a laptop (just an example) just because you want to. Of course your SEC will make regulations upon it and assign SRP for every product based on its fiat value. It seems that we can't easily escape the inflation Cheesy.
It is not pointless to hold bitcoin under those circumstances the only thing is that it is harder to convert it to your local currency, as an example assuming the exchange rate of 150 SDG for a dollar is correct, and I think it is since most likely the official rate is manipulated, this means that if you buy bitcoin at that point and the inflation grows 100% and the price of bitcoin remains flat if you try to sell whatever bitcoin you got you will get twice the amount you bought it with.

When people think of black markets they think about illegal goods and services but when the economy is being manipulated by the state the black market is just as any other market in a free economy and gives a better idea of what things really cost and I have no doubt there are people there accepting bitcoin but not being vocal about it.