Bitcoin Baby - Day 29 "Stablecoins are not the solution Stupid Baby!" #Hyperinflation

This is a note to my stupid self.... that stupid self that saw the Hyperinflation coming but overlooked a little fact.

Stupid, Stupid baby....why did you put so much money into stable coins?

"Well to buy the Dip!"

What dip did you expect, you foolish kid?

"Well, another 50% one like we had in May 2021!"

Oh you bloody dumb babyhead, you thought you had it all figured out...didn´t you?

" Ehh yes, I thought I did."

Well, you missed a step.....didn´t you?

Yes, voice of the wise I did, and now all my get-rich plans are worthless."

Wanna explain to the audience what happened?

"Hmm, it happened during the late days of the year 2022."

What happened?

" Inflation Happened!"

What´s inflation?

When inflation occurs, the domestic currency is losing value. The fact that a candy bar used to cost 10 cents in the early 1960s and now costs $1, is a way of saying that $1 used to buy ten bars but now only buys one. The dollar has lost value. Alternatively, you could say that in the early 1960s, you could get a dollar by giving up ten candy bars while today, you only need to give up one. That is, the candy bar price of getting a $1 bill has fallen tenfold. Either way, inflation means the domestic currency is becoming less valuable.

But that´s not too bad, right?

"But in 2022 Fookin Hyper Inflation Happened!"

What´s Hyperinflation?

In some cases inflation has become so extremely high that economists have a special name for it: hyperinflation. Germany after the First World War is a classic example, but the most recent extreme case is Zimbabwe where — at the peak in mid–2008 — prices doubled every day.

How did that happen?

"Well, those great protectors of humankind, those monetary authorities, kept printing, and if you print too much money......... it becomes worth less.

And then the expectations mechanism kicks in. If people expect money to become worthless they want to get rid of it.....change it into valuables that do not lose their net worth.... and if everyone starts spending prices start rising even more. And the monetary world will fall into a downward spiral of upward pricing justifying the evergrowing fear of hyperinflation."

Didn´t you see that coming?

" Yes I did, that´s why I bought into crypto because I knew that Hyperinflation tends to start with high money growth. But I forgot about a little thing...."

Oopsie

"Oopsie indeed, at the start I wanted to own as much Bitcoin as possible.....because of the fact it's not infinite ....like the paper money printed 24/7. Then I lost 50% during the 2021 dip and I learned you need to have stable coins set aside to buy these dips. And not always reinvest everything back in crypto, because you will end up with way too expensive bags.

So in the 2021/2022 bull run, I did not reinvest much, but sold on my way up and turned from a bull into a bear...waiting for the big dip.......

And that dip happened during that very cold winter of 2022. But it was not the crypto market that dipped.... It was the freaking dollar."

But you were invested in crypto so you were safe, right?

"I got one word for you......Stablecoin."

A stablecoin is a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.

"It said volatility-free valuations of fiat. Volatility-free my baby gluteus Maximus. My stable US dollar-pegged coins kept dropping worse than Shiba Inu did in January 2022."

So you lost it all, by being a greedy baby that wanted to scoop up easy money during the next big dip?

"Yup, well not all but the price of BTC and gold pegged coins kept rising and well as it hit the US first ......by the time I woke up my thousands of USDT didn´t even buy me a DOGE coin."

This little story was inspired by a morning of watching Economic Fud Videos (but I am making sure that my USDT will never be more than 15% of my holdings and moving that other 10% into gold-backed crypto coins in my case I will use Anthem Gold as it´s been there for a while and it´s available on Kucoin.)

Fud Video´s

And the one that got this whole thing started

Thanks for the read, hope you enjoyed this scary story and hit that like button gently...like buttons have feelings too.

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