Cracked.com - The Five Most Surreal Financial Apocalypses From History

[Topazan]

I thought this might be of interest to bitcoiners.

Sorry if it's already posted somewhere.

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[quasarbtc]

Interesting.

[Xenland]

Thanks for the currency history lesson, Love it!

[Akka]

Hahaha, awesome:

Naturally, the government's response was to print even more money in larger and larger denominations, finally culminating with the 100,000,000,000,000,000,000 pengo note (imagine a hundred quintillion dollar bill).

Also:



Love it.

[robocoin]

"Sorry, ma'am, no cards. We only take sexual favors."

But it worked

[Topazan]

People literally only used the currency because they knew Tucker would kill or torture them if they didn't.

  If anyone wants to know the definition of "fiat currency", there you go.

Although aside from #3, all five of these stories are fine examples.

[wigglyuk]

So if there are hyperinflation for inflationary currencies and deflationary spirals for deflationary currencies... is there another type of currencies that avoids these two problems...?

[Topazan]

So if there are hyperinflation for inflationary currencies and deflationary spirals for deflationary currencies... is there another type of currencies that avoids these two problems...?

I'm sure you've read the arguments in this forum that bitcoin deflation is not a bad thing.

Rather than repeat those, I'll just point out that an easy solution to the problem is to allow currency competition.  You can limit the damage caused by hyperinflation if you allow people to abandon the failed currency for a healthier alternative.  That's what you saw in story #2, where they replaced hogge money with tobacco.  Argentina's coin shortage could have been dealt with by private organizations issuing their own tokens, possibly backing them up with pesos.