Hyper-inflating the goat [in Malawi] \ stacker news ~econ

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Hyper-inflating the goat [in Malawi]ianfost.substack.com/p/hyper-inflating-the-goat

804 sats \ 9 comments \ @k00b 22 Mar econ

The author writes pretty regularly about inflation in Malawi. They're also a bitcoiner!

In this post the author links inflation to goats being a store of value, to no tree growth because the goats eat most of the tree saplings, to floods and mud slides.

In a country where inflation frequently tops 40% while the central bank caps the interest rate on savings at 4.3%, the currency devalues suddenly over night (most recently by 44% in November 2023) and stocks, bonds and real estate are not accessible to the majority, goats truly live up to their name as the Greatest Of All Time.

A few years ago, they sold for 15,000 Malawi Kwacha (MWK) but now fetch north of 60,000 MWK. They are the nearest thing we have to challenging Michael Saylor’s bitcoin thesis that there is no second best.

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195 sats \ 0 replies \ @hasherstacker 23 Mar

I know Ian. He's the co-founder of Bitcoin Boma in Malawi. A Not-for-profit Bitcoin organization, which offers Bitcoin education inn the country. Ian Foster together with Nick Twyman, Grant Gombwa, Olev Maimets, Pacharo Nyirenda, Yankho Ngoleka and Kondwani Konyani are BITCOIN-ONLY educators in Malawi.

Thank you @k00b for sharing. This is really true.

28 sats \ 1 reply \ @Diego 23 Mar

By what mechanism does the CB devalue their currency? Do they just ‘print’ 44% more currency units or just say what new fx rates are? Cc @denlillaapan?

0 sats \ 0 replies \ @denlillaapan 23 Mar

Probably both. I don't know the specifics of Malawi...

The 44% devaluation number is from moving their USD peg, which (if they have enough reserves and it's credible) they can just do at a stroke or a pen no probs (I.e, here #747181)

33 sats \ 2 replies \ @Diego 22 Mar

Is this the same guy who was skeptical on bitcoin and he went on a trip to Malawi with Jeff booth and Erik hersham from gridless?

0 sats \ 1 reply \ @k00b OP 22 Mar

Could be, but this guy has lived in Malawi for 10 years afaik.

I hadn't heard that story!

0 sats \ 0 replies \ @Diego 23 Mar

Ah thanks. Not the same guy then. Thanks for putting me onto him. I’ll read his blog

12 sats \ 1 reply \ @Signal312 23 Mar

Really interesting article, thanks. Seems odd that the goat appear to not be actually commonly eaten?

While goat milk is seldom consumed, the meat a luxury reserved for special occasions and goat cheese basically unknown, the goats of Malawi perform a much more essential function. They offer a store of value accessible even to the poorest Malawian, a portable savings technology that outperforms all others.

0 sats \ 0 replies \ @k00b OP 23 Mar

I think it’s a lot like homes in the US. They aren’t bought to be used by the owner but to be resold in various ways.

21 sats \ 0 replies \ @Undisciplined 22 Mar

Floods and mudslides! Inflation is a problem of biblical proportions.