The American doomsday by Tom Lee

[deisik]

The same basically applies to people in Venezuela using their native fiat currency. Today you can buy your groceries with X amount of fiat, while the next week you need twice as much in fiat to buy the same groceries.

The Bolivar lost way more of its value than Bitcoin from its near $20,000 peak to where we are right now. In other words, buying Bitcoin at near peak levels (most people buy way lower since only a few people buy and sell the top) and holding it till today was a better deal than holding X amount in Bolivars within the same time frame. The good thing here is that Bitcoin will be going up again so your paper losses will turn into paper profits, while the Bolivar will keep tanking.

Even a can of tuna with a limited shelf life is a better store of value than the Bolivar.

Sure, losing 80% of your value is better than losing nearly all of it, but still it's pretty bad. Imagine someone from Venezuela putting their savings in Bitcoin at the ATH and now having only 20% of the original investment - this can be extremely devastating

This is a possible scenario but statistically not a very likely one

If we assume that a certain Venezuelan had bought bitcoins at 10k, which is a lot more plausible given the short span of time that Bitcoin was trading above that mark, he would have had his purchasing power halved by now (a little more than that but for simplicity's sake let it be so). Then the real question is, how much would he have lost if he had kept the local currency, i.e. the Venezuelan bolivar, all that time?

And we are not taking into account the fact that there is virtually no chance for his bolivar stash to regain its purchasing power in the future, while Bitcoin stash definitely can, and with a vengeance at that

[Wind_FURY]

If we assume that a certain Venezuelan had bought bitcoins at 10k, which is a lot more plausible given the short span of time that Bitcoin was trading above that mark, he would have had his purchasing power halved by now (a little more than that but for simplicity's sake let it be so). Then the real question is, how much would he have lost if he had kept the local currency, i.e. the Venezuelan bolivar, all that time?

https://tradingeconomics.com/venezuela/currency

I believe "he" would have kept more value by buying Bitcoin at $10,000 than holding all that in Bolivar. Haha.

I didn't check yet, but visually the chart shows that the Bolivar is losing much more value than Bitcoin.

And we are not taking into account the fact that there is virtually no chance for his bolivar stash to regain its purchasing power in the future, while Bitcoin stash definitely can, and with a vengeance at that

Plus it will always be more in demand than the Bolivar.

Who wants to hold Bolivars? Hahaha.

[upsidedown75]

First of all, people who live there still need bolivar so that is the answer of your question. As long as shops and stores there require bolivar instead of bitcoin people there will need bolivar, there is no question of "who needs bolivar" because that is a nations currency, its like saying "who needs dollars", I understand bitcoin is much more global and will  always be more global but bolivar will always be the national currency for them and that is important.

However, that doesn't mean bitcoin investment wasn't better, it was miles better for people and even if it lost value it didn't lose as much as bolivar, the only reason people still use bolivar instead of bitcoin is that they need to pay for stuff to stay alive in bolivar and can't do that in bitcoin, that is the only reason.

[deisik]

First of all, people who live there still need bolivar so that is the answer of your question. As long as shops and stores there require bolivar instead of bitcoin people there will need bolivar, there is no question of "who needs bolivar" because that is a nations currency, its like saying "who needs dollars", I understand bitcoin is much more global and will  always be more global but bolivar will always be the national currency for them and that is important

Technically, we don't know how things really are in Venezuela

I mean, with respect to your assumption that people still need bolivars for everyday needs. But I can tell you how it was in other countries that went through the periods of hyperinflation in their past. It is exactly as assumed here, with shops and merchants refusing to accept local currency. It doesn't of course mean that they are ready to accept cryptocurrencies, but the latter is rather a problem of cryptocurrencies, not merchants as such (let's be honest here, there is still plenty of room for improvement)

Typically, the US dollar is being asked for payment in these circumstances but it can be some other stable currency which is circulating in the area. And if the local government is unable to efficiently squash hyperinflation, the end result is just that, i.e. local currency being completely abandoned, at first by simple people and then by the government itself. The most notorious and well-known example of such an outcome is Zimbabwe (and their Zimbabwean dollar), but it is definitely not the only one

[bbc.reporter]

Is the money in circulation ample enough to defend Tom Lee's prediction? The S&P 500, the Dow Jones and the Nasdaq are in their all time highs, I reckon the rally must end somewhere.