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In Venezuela ppl r experiencing hyper inflation. It can ruin ppl financially. If u hold crypto before ur currency hyper inflates . U r consider rich? Trouble times but crypto helps in economic times definitely.

Depends what kind of 'rich' are we talking about, but I guess 'lucky' is the right term considering that you already converted your money into something else before its value even turns to shit. If you are from Venezuela and owns a hefty sum of bitcoin, I guess you can be considered as 'rich' since your money is worth more than anyone's money over there. But yeah, instead of contemplating about being rich or not at a poverty-stricken country by owning bitcoins, I guess one should be thankful on having a tool to combat hyperinflation while still living over there.

Well rich ia a very subjective thing, it will depend on how much money that got after you convert it to fiat, but if you hold crypto before hyper inflation you will be consider as one of the lucky and smart investor, crypto could definitely help you when fiat got inflation, avoiding inflation is also one of the main reason people invest in crypto

Being rich through crypto holdings is possible, but at the same time when there is hyper inflation the currency value of respective country will be low. At present the value of bitcoin is calculated in terms of USD and according to the different currencies available around the world. Rather than being rich, it'll surely give hands for users who have bitcoin in their wallet during the time of economic inflation.

No, all option either holding crypto and the inflation rate of the currency in your currency means it is a down trend to all of your assets. This never consider one to be rich where all of it are falling down or even if you consider crypto has gone stablize. Still it is not consider that you have grown your asset therefore it is not that one became rich holding crypto before the fiat currenct inflation.

Eventually it evens out based on intuitive looking at the situation of things. The reason for that is because of the need to exchange your crypto into fiat if you really wants to buy anything with it as long as crypto is not accepted as a legal tender. When there is hyper inflation, the local currency gets weakened while the prices of goods in the local market increases to another level. Which then means as a crypto holder, you will have to exchange say your bitcoin at a higher rate but when you buy with it, you get the same goods you would have gotten prior to the inflation period.  The only advantage is that, while those who hold fiat see their wealth drop, crypto holders still maintain their purchasing power.

Not really mate! If someone has bought crypto before hyper inflation strikes in, they can actually make a good use of it. Because crypto prices are mainly tied with the USD. So if hyper inflation strikes in Venezuela then the purchasing power of the currency will go down. That means, it will take less USD to buy Venezuelan currency compared to past. Similar way, previously bought cryptos will fetch higher amount of Venezuelan currency as it is measured in a similar way as USD.

Previously bought cryptos can indeed proved as a very good support during hyper inflation.

There's too many definition on what kind of rich you have. If you meant about financially and you have crypto's during the hyper inflation it depends on how much in total crypto wealth you have. Crypto became the savior of those people who have seen that it's a good way to fight against hyper inflation because it can save the most value of their wealth. There's the difference having millions worth of USD in crypto and millions of having Venezuelan currency.

If you hold a lot of cryptocurrency, you can consider as a rich but if its not then its just like you save your money from being devaluated. They are suffering from a hyper inflation, I don’t know how they can survive on that and for sure it will take years before it backs to normal. Cryptocurrency can help the economy to grow, but still depend on the government.

You wouldn't be rich in the sense of "wealthy", that's true. You'd just be losing money like everyone else.

But if everyone around you lost 99% of their money by holding the Bolívar/Soberano and you only lost 80% by holding Bitcoin, they might consider you rich. If I were in Venezuela, I would be very quiet about how many bitcoins I owned for that reason.

This is why I see a permanent bullish case for Bitcoin. You have to plan ahead, so you must hold it before hyperinflation hits, this means that even if things are ok in the economy, it's a good idea to hold time at any rate whatever the situation is.

It terms of not getting richer because hyperinflation devaluates the currency, it's not really the case because Bitcoin is limited in supply so even if the purchases are smaller, they still shrink the supply so holders of BTC benefit.

It is more about the preservation of the value of your fiat currency than anything else. Yes I know some people bought bitcoins late in 2017 at very high prices and the value of those coins lost almost 70%+ of it's value, but the Hyper inflation in Venezuela is even worst than that. < Venezuela’s annual inflation rate at the end of 2018 was 80,000%.>  :o :o :o

You will be considered being rich, if the Bitcoin price recovers and you bought bitcoins at these low prices. I made more than 800% profits on coins that I bought in 2015.  ;D

That's likely the major difference between Bitcoin and fiat money

Bitcoin can make up for the losses caused by crashes in due time, but it is never the case with fiat currencies. No one is going to return you the purchasing power that you may lose either due to an abrupt devaluation or gradual depreciation of a fiat currency over time. It is a one-way street with fiat money as there is no way in which it can "recover". The government (any government, for that matter) can only steal the purchasing power from you. It is called inflation tax and it is inevitable, so get used to it

Well put. While the jury is still out whether Bitcoin will continue to make up for its crashes, it's pretty much by design that fiat currencies lose purchasing power over time.

When the economy is bad, more money gets printed to stimulate the markets. When the economy is good, more money gets printed to reflect economic growth. Not a bad system in itself, after all it got us this far, but something that one should be well aware of.

In fact, you can use it to your advantage

Obviously, no government will easily accept being heavy on money printing, and the official inflation rates are typically way lower than real, and still more so when they are high on their own. For example, if in the US the official inflation rate is reported to be 2% yearly, you can't actually expect it to be 20% as the discrepancy will be too obvious and apparent. On the other hand, in some third world country the reported inflation can be like 20% while the real inflation will be like 50% or even higher

And this has interesting repercussions and consequences. As taxes, duties, penalties, etc are calculated using the official rates, you can use this discrepancy against the government itself. For example, you may postpone payments of taxes even despite risking penalties as you would still have to pay less in real terms. And this is a real phenomenon commonly occurring in countries with high inflation rates. The same with debts. If you have arrears (like utilities or something similar), you will likely have to pay a penalty way below real inflation rate

It is worth noting that this relation of inflation and debts is often what causes hyperinflation in the first place; ie. a government simply increasing inflation to lessen their debt burden.

It depends on how much crypto did you owned in the first place. If you converted your crypto already to fiat then you can call yourself a rich person already but if not then it's no use since you were just holding bags. But in the long run, if your crypto would grow tremendously just like what happens to Bitcoin then you may be one of the whales these days.

it only applies when hyper inflation occurs, the assets we store in crypto form certainly do not change too bad only when the currency is paired with VEF, it is just the same as VEF got hyper inflation, so if they didn't want get that, it must be converted to USD or other

Cryptocurrencies during hyperinflation are a replacement for the national currency, which becomes totally worthless. And this can be good proof, that currencies can be replaced by Bitcoin or other cryptos.

This is exactly what is going on here. Once the spiral starts, its too late. If someone bought and hold before it started, sure it could be considered "rich", but for people working and earning wages in that fiat, and spending most of it in daily necessities, there was little incentive to have savings in "unknown thing" before, and now there is too little money to buy "unknown thing" to be of any worth short of escaping the rapid devaluation momentarily (until you need to actually use it, in a span of days).

Think of it: the average Venezuelan (if employed) earns the equivalent 8 USD a month, its already insufficient for food alone, where is he/she going to take from to purchase bitcoin? But if this person doesn't do it, within a month (everyday faster) that would have the power purchase equivalent to 4 USD.

So you can't do it but you must do it...

Before: You didn't feel the need to do it, so you didn't.

Don't wait until its too late. And always diversify your investments if unsure...

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VEF was replaced with VES in September 2018. 1 VES = 100,000 VEF. Not even 6 months have passed and the 1 VES coins and 2 VES banknotes are getting rejected by people. The largest banknote is 500 VES which is currently about 20¢ in (USD). Debit card is a must have. Banks limit cash withdraws to 1000 VES (40¢) per day, and if you are unlucky, even less than that. It is rare to find an ATM with actual money in it, and its limited even more.

This is based on the assumptions that bitcoin's price at the time of hypee inflation in a country remains stable or moves upwards against the US dollars which it is tied to.
You would equally be considered to be losing money should bitcoin drop with the national currency remaining the same. Both scenarios would not matter unless you convert.

BEFORE the hyper inflation it is definitely a thing, look at my own country for example, because of the inflation the bitcoin prices went from $6.5k to $3.5k but we only lost about 10% of the total loss instead of the full version since the dollar value of it increased in our country.

Basically, the inflation is something that makes you poor very quickly and everything in your country worth x10 of what they used to, if you hold your own currency at that time then there is no way you can actually move to bitcoin afterwards however if you hold bitcoin beforehand and before the inflation begins then you have a shot at becoming very rich very quickly while everyone stays poor. While people have hard time buying and selling stuff you will be capable of living an alright life.

Well, it doesn't work any more

It is surprising to see anyone actually believing in this kind of thing now, i.e. that holders diminish the supply and this leads to higher prices. I understand when people were telling this prior to 2018 as it did actually look like that back in the day. But now that we have crashed 6 times, there is enough evidence that whatever effect holders may have on price, it is negligible. Supply may in fact diminish but that doesn't mean higher prices

$3000 was seen as insane prediction by many just a year ago. What do you mean holders have a negligible effect on the price? We are making obvious progress, every time we crash, we bottom at higher prices, then we start the journey to a new ATH. It's obvious it's going to be extremely volatile but it's the holders of last resort that matter. As far as supply keeps shrinking and the demand for the only unconfiscable asset on earth is there then the price will inevitably go up long term. It's going to take a while, these market cycles get heavier to move with every new ATH due the higher marketcap.

It’s the amount of crypto own before the hyperinflation that would determine how rich one would be. For instance someone who would have purchased enough crypto before hyperinflation can be lucky because it would be attached to USD.

Now, whatever that makes inflation start at Venezuela , the ability to buy usd will then go down and  the person who has owned crypto would be lucky because he would not need as much UsD to buy Venezuela currency like it would have been before the hyper inflation

You don't understand why we have crashed 6 or more times. I'm not even counting that. It has nothing to do with holders.
Most of the holders were people who survived bear markets and are sure bitcoin will never go back to the levels at which they held. If they were able to hold then they will be today whatever happens.

People who bought Bitcoin in December 2017 came with the intent of selling for a profit. Most of them bought because somebody they know bought earlier in 2017 and made money. They sold at the first sight of danger or lost money and sold too late.

In hyper inflation you just dont hold that  currency. You or spend your salary fast. Or exchange your salary into other currency or even gold. Yes Bitcoin can help here.  I lived as a kid in a country with quite high inflation. It was for a year or so and was even 100% a month. I remember there were traders standing in front of a bank. So when dad got salary he went in bank to pick it up and right outside of bank exchanged it for some other convertible currency. People adapt. Or you just went and buy something. a TV or something. You did not wait a month so you could get only half TV for same salary. People are not stupid.

If hyperinflation happen, i am agree we should not holding paper money or fiat, i am prefer holding Gold or bitcoin. Bitcoin already recognized as digital asset and i think if hyperinflation happen, people will hold gold and bitcoin

It is not the right term to use rich. Why? Because it just happens that you comes to be a lucky one when you hold a cryto currencies before your currencies experience hyper inflates. Well this is one thing that is too bad to happen for every individuals but also, gives the chance for the crypto currencies to saves its owner in times like this. If this happens to you, then, you could be say to be a smart and very futuristic crypto investors.
This saves an individual from bring his or her entire life from top to nothing.

Is it not a good idea to buy and hold crypto currencies during hyper inflation. I say yes. A good move from the citizen side. The crypto will certainly support when their local fiats doesn't. Right? Obviously they become rich when they hold crypto with high values when their local currency has lost its value during inflation.

Since money value would drop drastically in your country everyone living there would consider themselves poor. So the answer to your question is yes, because you have invested your money and during the inflation period the value of your bitcoin remains the same.

You may not that be sort of rich person but you will be able to survive in this economic crisis if you have saved the value of your money through bitcoin.

Feeling so bad for the Venezuelans, I've seen too many posts about money being thrown in the streets.

I feel bad for the people of Venezuela as well but bitcoin was created to help people in those desperate circumstances, when there is hyperinflation the most valuable commodity is not food or water, it is money itself, if you have a form of money that is not losing its value at an incredible speed you have a huge advantage so anyone with access to dollars, gold or bitcoin can protect the value of their efforts and can exchange their money for a premium as everyone wants the money that person is holding.

Sort of. Depends on dollar as well. For example if you live in Venezuela (or any third world country like Zimbabwe and so forth) dollar also gains value, so instead of holding bitcoin if you had dollars in your pocket during the hyper inflation than you already made a lot of profit and considered rich.

When everything is going perfectly having 100 dollars in your pocket is not a huge amount but when your 100 dollars that you stored just in case gains about x100 or more in value than you could be considered "rich", not in the sense that your 100 dollars will buy you multiple houses but at least you could get some more food than other people. Same applies to bitcoin or euro or sterling and so forth. Having a foreign currency whatever it is will help you out a lot.

At times of hyper inflation the value of bitcoin too will decrease, because in some form it is dependent on the physical fiat. Maybe we can say that bitcoin is independent and doesn't get affected by any of the external forces. In reality this isn't the same with the value decline of USD there will be some change if there is inflation. I don't find reason for such inflation to happen around.

Totally agree with this. I saw in recent news that people there are now using dollars directly. It's like the same situation in Zimbabwe where the currency has become useless.

Main difference is even before this there are already BTC users in Venezuela. People will accept bitcoins as payment since they know it'll be WAY easier to exchange to USD later than the VEB, which I noticed isn't even in Google's exchange rate tool.

if you put your money unto bitcoin , that money will also be lost if bitcoin experience a dump  but you can surely survived in economic crisis because all of us do still have other source of income aside from cryptos and bitcoin .


why would feel bad about it ? thats not your fault  . they might be rich thats why they throw away thier money   .  you may feel angry about them instead of feeling sad because they dont value money while other parts of the countries are dying due to poverty .

I'm not sure if it is not your conjecture only

We were trading below 3k as recently as August 2017 (which is a little over a year ago), so it didn't look like "as insane prediction" at all. In simple terms, it was reality back in the day, so there is no way in which people could think of it like "insane". Well, some may have actually thought so, but they obviously fell victim to being deluded

Further, the price rose and then crashed many times which means holders are contributing not so much to price rise as to volatility, if this is what you are asking. If it were not true (read, false), the price couldn't possibly crash from 20k down to 3k, as simple as it is. But since Bitcoin did crash so much, the bottom line is pretty simple, isn't it?

It is a very trying time for the people of Venezuela. This is the major reason is why having Bitcoin is a great necessity. I read the story of a young man who has been saving his family by the help of cryptocurrency. He said crypto has really been supportive. He kept all his money with Bitcoin and only exchanges small amounts in the persistent hyper inflating economy when he deems it necessary.

According to him, he does not own Bolivars, that’s their official currency instead he kept all his money with Bitcoin. The Bitcoin user said he doesn’t even have a bank account. This is how he has been able to stay for his family

To maintain our asset value, we should make investment before hyperinflation happen. Holding bitcoin or gold in normal inflation will keep our asset value maintained when anything happen and i think its more safe to make investment in this bear market

I feel very bad for them also. it’s a challenging period for the people Venezuela I must say.

I understand the government monitors every of their transactions in Bolivars that’s their currency and it freezes the acct of those who spend more than $50 and they have to let their banks know how they made the money but it’s not able to monitor Bitcoin, so the few lucky one who own cryptocurrency would convert it to their bolivars and to buy their everyday needs, they use localbitcoins to look for buyers make use of the same bank and the wire transfer goes through immediately.

It's very hard for the people out there, I've watched a documentary about the situation there and just think of it, you have to pay for a hotdog sandwich with your one whole month of work!

That's very saddening.

In those desperate situation, they don't have a choice but to look for something that has a better value than their currency.

You don't understand the situation there, do you?

Of course, this is an automatic ticket to riches when you hold crypto during hyperinflation in a country.

It might not have any effect on the amount of crypto you are holding but it does have an effect when you intend changing it to the fiat currency because the exchange value has far appreciate than when it was bought, it only backfires when buying crypto currency that time, it makes buying of crypto way too expensive because of exchange.

The only challenge with hyperinflation in a country is that it destroys the country’s currency, so the holder has to be very fast then before any form of correction occurs.

I'm hold my crypto but never had any experience to facing hyper inflation because economy situations in my country are quite good but maybe hold crypto before inflation would be good to avoid go bankrupt because crypto price usually not depend on the situations of particular countries but i'm curious to find the answers from venezuelan people that whether they can able to avoid being poor by holding crypto or it does not change anything

It can be a saviour from hyper inflation but is that going to make you rich? Don't think so because you can save the before value on crypto which doens't make your bitcoin more valuable.But you can looks like rich if there is no one from your country saved their money while hyper inflation occurs. :D

Crypto coins are of paramount importance here, because they have become extremely ideal options for storing value like country coins. Crypto coins are also among the most sensible options to maintain the value of money, especially in hyperinflation situations, or even to provide a serious income in a possible uptrend. For this reason, even if hyperinflation is on the one hand, even the citizens with high inflation rates should be informed about this issue, so that in the event of a crisis, these individuals do not lose their value.

The anger should not be on the Venezuelans then but the government that fail to control the inflation, every country has the tendency of actually experiencing this but the people they chose has leaders in that field has been the ones controlling inflation in some countries, so I blame their government for watching it till it got out of control, this is exactly what we say about a centralized system, it is high time now their government start looking at crypto currency as an alternative tool which could help control this.

Bad situation. But if you have crypto currency you will exchange it into a Dollar, Euro... not in bolivar. In situation of hyper inflation with Euro and Dollar, person has good chances to survive tough period. In case like that it is pure richness. Only problem could be possibility of transferring crypto into a fiat. For example, If you have cryptocurrency in your wallet and no  one to sell it, or have difficulty to 'cash it out',

It wont make you rich, it might allow you to avoid extreme poverty though.   Theres a very good study by Marc Faber an economist and investment manager on the effects of national inflation in Mexico and holding stocks within that time.   Stocks will adjust for inflation some but the net effect over the time period of something close to a decade was no net gain or net loss.   The figures for the stock price might rise so does the cost of bread etc.  in effect its like 0% interest on your money in the bank during normal times.

Crypto might be very similar to that, you wont gain especially.  Inflation is a form of loss and failure

actually the expectation is always there, but always when the crypto market falls, the bounty also doesn't provide rewards, so I can't buy coins for investment. even though I had planned to buy etherum and bitcoin from the bounty reward obtained.

take advantage of the best opportunities possible, we must understand the market conditions that occur, so we don't have to stress to deal with them. any bullish or bearish market condition is an opportunity

I think this is what should be expected

If we assume that inflation is not a thing onto itself but rather an inevitable result and outcome of overall economic decline and downturn. In such circumstances you would not really expect a lot of companies to prosper, which necessarily affects their profits and as a consequence the valuation of their stocks, in a negative way, obviously, and oftentimes with a vengeance at that (read, the scale of the stock market crash may easily exceed the inflation rates)

You can maybe be considered rich if you do not convert your coins to the already depreciating currency(due to inflation)
Inflation devalues money and increases cost of living in general,selling your coins at that time(and converting to fiat)could even mean losses for you.

if bitcoin was accepcted by most of country in the world , no matter what rightnow price ,  i will consider rich by holding cryptocurrency rightnow

It can be converted as opportunities when we know how to make a perfect timing entering this market, holding coins will determine your fate, as time will passed by and the value will rise high again, how many coins that you've store will measures your wealth when the bull brings the new high inside this industry, make sure you are ready when that time comes.