Bitcoin and other digital currencies can serve as a lifeline for people in countries experiencing economic turmoil and hyperinflation, providing a way to protect their wealth and escape government control.
Bitcoin as a lifeline in economic turmoil
Mauricio Di Bartolomeo shares a personal story of escaping hyperinflation in Venezuela through Bitcoin mining with his family.
Families in Venezuela had to make heartbreaking decisions about which children to send away due to economic hardship.
The experience in Venezuela made it clear that Bitcoin could be a lifeline for people in countries experiencing economic turmoil.
The revolution of connecting things into a power outlet to produce hard money was a game-changer in the context of hyperinflation.
Inflation and hyperinflation are two different things entirely, with hyperinflation causing catastrophic consequences for both individuals and the nation as a whole.
Capital controls make it impossible to convert local currency into dollars, causing a complete loss of trust in the government’s ability to steer the economy.
Venezuelans found Bitcoin in hyperinflation, where they have to work to get rid of their money before it becomes worthless.
At 200% inflation, the frog doesn’t even want to touch the water, they’re like get me out of this water.
The introduction of stable coins was a game changer, providing a digital dollar that can be self-custodied without the need for a bank account.
Government oppression and seizure during hyperinflation
The government forcefully stealing people’s mining machines during hyperinflation is a terrifying reality for many.
In a place with no rule of law, you are either a hammer or a nail, and there are very few options for you if you become the nail.
The government’s portrayal of miners as criminals during the seizure was unjust and exaggerated.
