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A Venezuelan could also own dollar/euro denominated assets or commodities. BTC would need to be better and more stable than those for someone to view it as an effective hedge.

If US or EU inflation hit 2000% there would be global consequences. There is no reserve asset currently large enough to redenominate US denominated assets, aid payments would collapse, and currencies pegged to the dollar would collapse. Betting on BTC for such a world is reasonable, as there would be a reasonable chance your gold reserves would be become inaccessible, seized, or both. However ammunition might be a more effective financial hedge in this situation.



> A Venezuelan could also own dollar/euro denominated assets or commodities.

If they're allowed to. Which underscores that the true innovation of Bitcoin is to circumvent rules and regulations.


Why would they be allowed to own BTC but not USD?

How are they going to buy groceries with their BTC? Pay rent? Taxes?

Go to the local black market and exchange it for local currency? You can do that just fine with USD, too.

Does doing black-market deals in BTC somehow make you immune to arrest, prosecution, and execution?


With BTC they can get their money out of Venezuela by memorizing several words. With USD, they can't.




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