R u consider rich holding crypto during hyper inflation

[bitcoinsc]

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.

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[dothebeats]

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.

[Indrawan77]

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

[romero121]

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.

[jademaxxiss012]

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.

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.

[audaciousbeing]

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.

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.

[avikz]

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.

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.

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.

[livingfree]

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.

[creeps]

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.

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.

[exstasie]

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.

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.

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.

[cellard]

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.

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.

[Kakmakr]

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%.> 

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. 

[deisik]

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

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

[HeRetiK]

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

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.

[deisik]

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

[HeRetiK]

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.

[Oceat]

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.

[Matthewmorris4]

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.

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

[Linkkoin]

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.

[Artemis3]

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.

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...

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

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.