I love this sentence about cryptocurrency, it sums up its applications:
Cryptocurrency is not for buying coffee at Starbucks but for Venezuela.
Venezuela has been experiencing hyperinflation. Venezuela’s 2018 Inflation to Hit 1.37 Million Percent according to IMF.
Bloomberg’s Cafe Con Leche Index, which tracks the price of a cup of coffee served at a bakery in eastern Caracas, estimates an annualized rate of inflation of almost 340,000 percent in just the past six months.
A country’s economy is a complex system and there are a number of factors that have contributed to this hyperinflation. The government has to take responsibility for a lot of this blame.
According to this Bloomberg article
Years of misguided policies coupled with a plunge in production to a seven-decade low by the country’s all-important oil industry have thrown the economy in a tailspin. Yet even with plunging currency reserves and rampant shortages of food and medicine, the administration of President Nicolas Maduro has largely resisted lifting a complicate web of price and currency controls that economists cite as a major contributor to Venezuela’s financial crisis.
It’s painful to see people’s hard earned money get destroyed in value because of corrupt/incompetent policymakers.
While Venezuelan Bolívar has depreciated greatly against US Dollar, Bitcoin has held well against US Dollar.
Bitcoin is a great store of value.
Cryptocurrency advocates: Just as state and religion were separated, money should be separated from the state.
There are still some great problems to solve before that can be achieved. All in due time.