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By providing you an alternative store of value that isn't controlled by a handful of people in government.

Look at Zimbabwe Dollars or the Weimar Republic. There's no reason that can't happen in any other country and Bitcoin provides an alternative to government issued currencies or any other currency.

Edit: downvote for ...?



There's no reason that can't happen elsewhere, but there are a lot of reasons that it doesn't. Hyperinflation is actually a pretty rare event, which is why we keep seeing the same two examples over and over - and stated as if they had come out of the blue in what seemed to be a well-functioning economy, rather than being the result of extreme political conditions.

Ironically enough, the old Deutschmark is still traded in parallel in Germany, and since it's no longer issued or subject to exchange-rate fluctuations it's inadvertently acquired some of the characteristics people like about Bitcoin. To put things in perspective, there are more DM in Germany than there is global market cap of Bitcoin: http://online.wsj.com/news/articles/SB1000142405270230437380...



Hyperinflation is actually a pretty rare event

Citation please?

Because I'm not even 30 and it's happened in some country at five times in my lifetime - that I'm aware of. Yugoslavia, Brazil, Argentina, Zimbabwe, Venezuela. I guess if you stay away from the ends of the alphabet you'll be fine. The US and Canada better watch out.


I suppose I should have said 'hyperinflation resulting in economic collapse', but I think my point stands. Look at your examples - except for Argentina, all your examples involve war or de facto dictatorship.

I think it is unusual relative to the number of countries in the world and the time involved. There's a list here: http://en.wikipedia.org/wiki/Hyperinflatio I count 21 examples in the last 50 years, of which half were directly corrleated with the collapse of the Soviet Union and most of the rest were in Latin America, a region with a long history of poor governance.

Of course Bitcoin can function as a hedge or a store of value, like gold historically has. But the majority of people who extol it for this purpose as in the developed world and the US in particular, where the probability of hyperinflation is very low. The closest we've come to a crisis of that kind in recent years is Cyprus, and (again) that's a place with an unusual political problem.




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