We know that countries such as Argentina and Venezuela are having tough times with inflation for a couple of years already and this doesn't seem that is going to change anytime soon.
How would this change if they instead of their own FIAT, adopted BTC for example? I made some calculations (Sorry, if there is any mistake, please let me know, and I will correct them ASAP), so we can have a general idea of the numbers.
Here is a comparison table between Argentine Peso, Venezuelan Bolivar, and Bitcoin.
Table 1: Inflation Rates of VEF, ARS, and BTC from 2014 to 2023 (YoY)
Year
Venezuela Bolivar (IR)
Argentina Peso(IR)
Bitcoin (IR)
2014
68.5
36.9
-58.5
2015
275%
25.4%
35.1%
2016
481%
41.8%
-55.5%
2017
1,369,860%
24.8%
1317.8%
2018
1,700,000%
47.6%
-73.1
2019
9,982,058%
53.8%
-19.9
2020
2,953,821%
36.1%
303.7%
2021
686.4%
50.9%
59.8%
2022
237.7%
50.9%
-65.8
2023\*
317.6%
64.7%
-58%
*(IR) Inflation rates for 2023 are year-to-date as of October 11, 2023.
Now, the next question that pops in my mind, is what is the total inflation rate during these 10 years? Let's take a look:
Fiat/Crypto
Total Inflation Rate 2014-2023
Venezuela Bolivar (VEF)
6,600,000,000,000%
Argentine Peso (ARS)
1022.9%
Bitcoin
-40.0%
As we already know, Bitcoin has been deflationary in the long-run terms (We shouldn't see it from short-run perspective, because usually after a bull run, we might have some "inflation", which is more like a reduction in value, then recover the next cycle.
We know that we are still some steps further for countries to adopt BTC as legal tender, but in these countries, there are some individuals already doing transactions using crypto, which helps them to keep the value of their money way more if they keep it in FIAT.
It is harder if we analyze external factors, but this is the general idea.
Other than Venezuela and Argentina, which countries do you think would get more benefits in terms of inflation if they adopted BTC as a legal tender? submitted by /u/changhuanese
[link] [comments]
http://dlvr.it/SxH7Jg
How would this change if they instead of their own FIAT, adopted BTC for example? I made some calculations (Sorry, if there is any mistake, please let me know, and I will correct them ASAP), so we can have a general idea of the numbers.
Here is a comparison table between Argentine Peso, Venezuelan Bolivar, and Bitcoin.
Table 1: Inflation Rates of VEF, ARS, and BTC from 2014 to 2023 (YoY)
Year
Venezuela Bolivar (IR)
Argentina Peso(IR)
Bitcoin (IR)
2014
68.5
36.9
-58.5
2015
275%
25.4%
35.1%
2016
481%
41.8%
-55.5%
2017
1,369,860%
24.8%
1317.8%
2018
1,700,000%
47.6%
-73.1
2019
9,982,058%
53.8%
-19.9
2020
2,953,821%
36.1%
303.7%
2021
686.4%
50.9%
59.8%
2022
237.7%
50.9%
-65.8
2023\*
317.6%
64.7%
-58%
*(IR) Inflation rates for 2023 are year-to-date as of October 11, 2023.
Now, the next question that pops in my mind, is what is the total inflation rate during these 10 years? Let's take a look:
Fiat/Crypto
Total Inflation Rate 2014-2023
Venezuela Bolivar (VEF)
6,600,000,000,000%
Argentine Peso (ARS)
1022.9%
Bitcoin
-40.0%
As we already know, Bitcoin has been deflationary in the long-run terms (We shouldn't see it from short-run perspective, because usually after a bull run, we might have some "inflation", which is more like a reduction in value, then recover the next cycle.
We know that we are still some steps further for countries to adopt BTC as legal tender, but in these countries, there are some individuals already doing transactions using crypto, which helps them to keep the value of their money way more if they keep it in FIAT.
It is harder if we analyze external factors, but this is the general idea.
Other than Venezuela and Argentina, which countries do you think would get more benefits in terms of inflation if they adopted BTC as a legal tender? submitted by /u/changhuanese
[link] [comments]
http://dlvr.it/SxH7Jg
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