As hyperinflation continues to wreck fiat currencies in the more mismanaged economies of the world, investors are turning to cryptocurrencies like Bitcoin as a deflationary “vault” for safely parking their money.
Latin America, in particular, is becoming a hotspot for this kind of economic migratory pattern that seems to hearken the dawn of the age of cryptoeconomics. That’s according to Carlos Mosquera, the creator of the Solidus Capital hedge fund in Italy:
“Latin America is very volatile. Cryptos are turning into a new haven for these families.”
In #LatinAmerica wealthy families are buying up #bitcoin – the cryptocurrency craze suddenly doesn’t seem so crazy in countries that know a thing or two about hyperinflation. @Bloomberg https://t.co/QTtmOBeOT2
— Julie T Katzman (@JulieTKatzman) December 11, 2017
But the deflationary appeal of scarce cryptocurrencies like Bitcoin aren’t limited to Latin America.
For instance, Zimbabwe has been in the headlines of crypto publications all year long as investors in the nation have fled the hyperinflation that’s now loosed upon the Zimbabwean economy.
And capitalizing on this migratory dynamic is big business right now. Just ask Roberto Ponce Romay, the brains behind Miami’s $15 million USD Crypto Assets Fund. Romay’s noticed an explosion of international investors hailing from economies experiencing hyperinflation, and it’s the practicality of this solution that’s going to legitimize crypto going forward:
“We’re convinced this will become a new asset class, just like stocks and bonds.”
In recent years, the world has watched on in horror as some people have had their life savings obliterated by over-printed, hyper-inflated fiat currencies. But it appears that the tide is finally turning, and the power of Bitcoin has given everyday citizens an opportunity to bypass the incompetence of poor economic planners.
Previously, whatever central banks said is what happened. There was do debate. If they wanted to print more money, they did, devaluing that given currency all the while.
Now, let the bankers print all the money they like. The “little guys” will continue to accumulate as much cryptocurrencies as possible in the meantime.
TLDR: Hyperinflation is a killer in mismanaged economies the world over. And cryptocurrencies like Bitcoin are providing a practical haven here and now.