Our fren @KotyAuditore from @LNMarkets asked us to do this plot. The purple line is Venezuela USD black market price history indexed from second half of 2012. Thus in Weimar terms the story is close to its culmination. It is worth betting among inflation nerds if Venezuelan numbers reach Weimar's and this is rather surprising fact that they haven't reached it yet. Although we could be wrong: the red star marks official denomination. In fact, inflation hasn't slowed down from that point.
200 sats \ 1 reply \ @hector 30 Jul 2022
I'm Venezuelan. Inflation has slowed down in the last couple of years but it looks like it accelerated a bit in the last quarter.
reply
0 sats \ 0 replies \ @weimartifacts OP 2 Aug 2022
Yes. The plot after a star a bit of a stretch however, it is visible that the curve bends a bit in other direction which means slower inflation.
reply
100 sats \ 3 replies \ @takaponka 30 Jul 2022
There was a picture with their currency on a 2 year scale, for one chicken price.
At the beginning you need ur full hand, at the end a cart. Hyperinflation is fucking real for overexploited countries, sanctions are economic warfare and it's killing.
reply
30 sats \ 2 replies \ @lrz 30 Jul 2022
Do you believe a sanctioned, hyperbitcoinized country would have hyperinflation?
reply
100 sats \ 1 reply \ @takaponka 30 Jul 2022
I don't know how to reply that honestly ... what is sure is scarce money doesn't save you if you can't buy and import anything you need because of sanctions. So if there is less and less products (food, oil, etc) the sats price will have inflation/hyperinflation as well.
Bitcoin can be a tool to bypass sanctions and facilitate international trades.
For now, the IMF is mad at Salvador and Central Africa country, I'm waiting that a country, any country affected by sanctions, use it to import stuff. At this point the real war will begin. Officials in Russia said accepting BTC would be a possibility.
reply
100 sats \ 0 replies \ @lrz 30 Jul 2022
Yes I hope that too.
In my opinion Venezuela would have a radically better standard of living if they were both U.S.-sanctioned and hyperbitcoinized. They have a lot of farmland, access to the ocean, and an insane amount of oil and other natural resources, and while international trade is limited they still have some access to it. Their real enemies are the kleptocrats in Caracas.
I think significant trading will be done in rubles much before BTC, although central banks will slowly start including BTC in their reserves.
reply
60 sats \ 1 reply \ @sb 30 Jul 2022
This is a fantastic chart - thanks for posting!
My god. We're headed towards a dystopian future where this could begin to happen in G20 and G7 countries. Turkey, Canada, maybe even the UK. Thank God for Bitcoin.
reply
0 sats \ 0 replies \ @weimartifacts OP 2 Aug 2022
Thanks!
reply
5 sats \ 1 reply \ @lrz 30 Jul 2022
Is this adjusted by dollar inflation too?
reply
0 sats \ 0 replies \ @weimartifacts OP 2 Aug 2022
No. It would make everything a bit more involved. I think it is enough as it is
reply