According to US economist Saifedean Ammous, inflation in Brazil was one of the first lessons that set him on the path of bitcoin when he was a kid and spent a few years in the country.
For those who don’t know, Saifedean is the author of the books ‘The Fiat Standard’ and ‘The Bitcoin Standard’, well known by the bitcoin community worldwide.
His books contain some guides to better understand bitcoin technology and its application in economics.
Last Friday (2) he chatted with the Brazilian channel dos bitcoinersone of the largest on YouTube in Brazil.
Inflation in Brazil taught American economist the importance of bitcoin
A Vasco fan and carnival music fan, Saifedean Ammous was at ease chatting with the Bitcoinheiros channel hosts.
During the chat, he confessed his passion for Vasco after living in Brazil as a child and seeing the duo Romário and Bebeto on the field.
As for the inflation that the country experienced between 1987 and 1989, when he lived in the region at the age of 8, Ammous saw the birth and death of many currencies such as Cruzado, Cruzado Novo and others.
“I remember very well the inflation at the time, and I remember watching television and seeing people running to the supermarket when it opened and arguing about products. I remember asking my parents why they did that, they tried to explain inflation to me, but I still couldn’t understand it.”
Before living in Brazil, he had lived in Saudi Arabia and there was no inflation, only an exchange rate with the US dollar.
But Ammous understood one thing: people rushed to the market because money lost value so quickly.
He said he is very sorry that Brazilians went through such an experience so that he could learn what inflation was, but today his experience in the South American country influences his work as a bitcoin enthusiast.
“Inflation target is understood by people, getting poorer”
In his conversation, Saifedean reminded Ammous that inflation does not exist only in Brazil and Venezuela. Countries such as Lebanon and Zimbabwe have also experienced problems with the uncontrolled loss of state-issued money.
However, the author believes that people experience hyperinflation every day, but in slow motion. That’s because people spend all their money without worrying about saving or the future, which is a concern.
For Ammous, this is a reflection of a fiduciary society, which does not cooperate with each other and always tries to get ahead of others.
One of the topics that came up during the conversation with Bitcoinheiros was the inflation target, which central banks like to set at 2% per year.
However, Ammous believes this is an unrealistic goal as goods and services have rapidly appreciated in value relative to fiat money.
For example, people living in countries that have already achieved double-digit inflation, mainly in Europe, are beginning to understand that such targets are part of a theory that central banks portray as something big, when in reality there are no official studies that prove the theory.
Looking ahead, Ammous believes bitcoin’s growth pattern will show the world a viable alternative.
Follow Livecoins on Google News.
Like on Facebook, tweet and Instagram.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
