A funny thing happened on the way to hyperinflation. Seems millions of Argentinians are learning about the power of BitCoin. The use is quite simple, just transfer a sum of your money into the stable BitCoin, then convert it as you need to use it. As the local peso collapses the BitCoin remains strong. One has to wonder if this is going to be the future in the USA as well.
BitPay, a paypal like service for Bitcoin, has already integrated with Amazon third party sellers. If only Amazon itself were to accept BitCoin then you could get just about anything on earth in BitCoin money. WordPress also accepts payments in BitCoin. More and more of the intelligentsia on the web is accepting BitCoin now that BitPay makes it easy to do so.
If America begins to hit hyperinflation, scheduled for 2014-2016 when our debt payments become greater than 50% of our tax revenues, moving to BitCoin with a good portion of your wealth (the rest in land, farms, gold, art, and collectibles) it will allow you to skate through an economic collapase with only minor fraying.
One has to wonder if Bernake does lose control (or some might argue WHEN) if that won’t be the shift to the new digital currency in spades.
Another question for Argentina is if their nation shifts to BitCoin, will they adopt it then as an official currency? With physical versions of BitCoin available its pocketable as the dollar.
And what about BitCoin mining, that mysterious practice of bending computer power to deduce the next numbers in the hash? It’s another protection in a collapsing economy. Having a solar powered bitcoin deducer could be a means to ensure you don’t starve if it all goes bad. Something to think about. Most bitcoin mining machines use custom ASICs or high end GPUs like AMDs 7980 card.
In the end, a repeat of hyperinflating Zimbabwe seems unlikely in the western world, we have BitCoin ever at the ready to step in and take the fiat currency’s place. and that’s a good thing.