Re:Lebanese turn to cryptocurrency as economy tanks
by rjstreur on Thursday March 31, 2022 @02:40PM
(#30870787)
I kind of agree, but it seems crypto is only a hedge against incompetent/corrupt government insofar as
1. It can act as an actual alternative currency and
2. Those governments do not adopt it their citizens' alternative currencies themselves or choose to tax it
It seems like in this story the actual alternative currency the Lebanese are "foreign currencies", and crypto is seen as a potentially profitable speculation in the midst of an economic downturn.
The extent to which cryptocurrencies actually server as currencies, and therefore actually hedge against national currencies, is inversely proportional to the extent to which they are used as a speculative asset class. People have a really low tolerance for price volatility, and if the value of currency swings up and down it can make it really stressful to participate in an economy.
1. It can act as an actual alternative currency and 2. Those governments do not adopt it their citizens' alternative currencies themselves or choose to tax it
It seems like in this story the actual alternative currency the Lebanese are "foreign currencies", and crypto is seen as a potentially profitable speculation in the midst of an economic downturn.
The extent to which cryptocurrencies actually server as currencies, and therefore actually hedge against national currencies, is inversely proportional to the extent to which they are used as a speculative asset class. People have a really low tolerance for price volatility, and if the value of currency swings up and down it can make it really stressful to participate in an economy.