We all talk about currency debasement in Bitcoin circles and look at numbers, but it sure doesn't tell the full picture, prices of things don't always reflect the behaviour changes and the way people are compensating for the debasement of their salaries and savings.
Sometimes I am also guilty of getting caught up in the discussions and forgetting the reality on the ground, but man this hit me big time.
I came home from soccer last night at around 10 pm, and most stores are closed, expect for forecourt retailers at petrol stations, which retail at a pretty hefty premium I was out of coffee, so thought I'd walk to my local "spaza shop" these are informal stores that sell all sorts of rando stuff, sometimes if I have cash I will buy Bitcoin vouchers there
Anyway, as I was standing in the queue outside, I took note of the people in front of me, and what they were buying, now there are certain things that are pretty normal to see people buy in singles
  • Cigarettes
  • Nappies/diapers
  • Coffee sachets
But I shit you not, this trend is moving into other things too, people were literally buying those sliced processed cheese in singles, like the shop owner would break open the packet and give them like 1 or 2 slices of cheese, people would ask for 5 biscuits, and the shop owner would do it, rather than not do the sale
The crazy thing is some people were doing this and still paying by card, but why would you pay card fees when you already skimping like this? Cash would be cheaper, so they could even be doing this on credit, but this is just an assumption.
You can also see the fresh fruit and perishables section in the store has shrunk considerably, obviously, it has a shorter shelf life, but even with less available electricity, you don't even have the fridge to extend it, so you see the stores packed with seed oil, sugary stuff because that can last longer and reduce the volatility for the shop owner

Food poverty takes on many forms

And it's not just in my area, this story broke is starting to make the rounds, of people buying rice by the cup or cooking oil by the spoon
We're also seeing shops and to an extent, people taking chances on expired food and yeah as you can expect it's not going well and there have been 4 reported deaths from expired or fake food, yes there's also a fake food industry that is growing to support demand for cheap things to eat
I've never seen it this bad
Hi @TheBTCManual, Yeah, that sounds pretty bad. I'm guessing that it's going to be more expensive buying things separately (but good for the owner). I think you're also making the point that the shop owner paying lots of Rand through card fees? These passed onto the customers I'm sure...
The ironic thing, that you mentioned, is that the answer could be right there under their noses as they're selling (I'm guessing) Azteco Bitcoin vouchers.
Bitcoin adoption aside, the situation also sounds ripe for people to get together and open a food cooperative (with a big Bitcoin accepted here sign naturally).
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Yeah for the shop owner, he is making a little extra by offering the service of selling individual items or amounts that aren't standardised but this off settting can only go so far, and I'm wondering at what point people realise things aren't getting more expensive but its currency debasement driving it, yes energy scarcity locally and energy prices are a part of it but eventually those things fade, so at what point in the process of elimination of reasons do you finally get hey I need another money, chances are people will go to stablecoins and I will face palm myself but okay people have their own way of getting to a destination or conclusion
For sure incentives drive behaviour, if there is profit to be made, people will monetise their land, to grow fruit or vegetables and meet that demand, and hopefully they won't want to sell their labour and time for a shit compensation
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Do people not carry cash for safety reasons?
Thanks for sharing
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People do still carry cash, we still have a big cash economy, but it has changed slightly, people obviously don't want to hold too much cash for safety reasons, but also banks are slowing down on having ATMs, they are not as widely available as they used to be due to gangs that target them, ATM explosions are pretty common.
So banks and stores are forced to keep ATMs inside, have security 24/7 or lock them up after hours. People can also pull cash from the store when they need it, so you go to the store ask for the cash, then you can spend it.
Plus people are sending "cash" via SMS codes, so I can send you a pin and then you can withdraw the cash in say 10 days
But cards have become more popular now, there are banks specifically targeting low LSMS
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Most places are trying to get one past us with shrinkflation
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Indeed, shrinkflation on products, and skimpflation on services all add up as businesses adjust operations to the new price of money
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