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Comment by Lorin | Hacker News Reader

I'm afraid it makes sense if they are hedging bets against a major global economy...

Hedging against what? There are plenty of ways to hedge against inflation risk or currency risk without buying into an asset that can lose 50% or more of its value very quickly (and has, a number of times).

How would you suggest hedging against the death of fiat currency without buying a non fiat currency?

> How would you suggest hedging against the death of fiat currency without buying a non fiat currency?

We’re aware there are non-U.S. dollar currencies out there? And non-currency assets one can buy?

Maybe it's just me, but if we truly see the (global) death of fiat currency, the inability of Elon Musk to sell a Tesla is gonna be among the very least of anyone's problems.

In general yes, but I think Musk's inability to sell Teslas is going to be a major problem for the particular person deciding whether Tesla buys BTC or not.

Nigera is suffering from high inflation and their problem is that they aren't mechanizing their agriculture sector. The end result is that they import a lot of food and fail to export their cash crops. If the government borrowed/printed money and used it to grow the agriculture sector they could actually stave off inflation despite increasing the money supply.

As per usual, the major issue with fiat currency is how poorly the government is managing the country.

Bitcoin is not a viable hedge against a global economic downturn. Just because people push these narratives doesn’t make them true. There is absolutely no evidence that Bitcoin would not crash just as fast or faster than the economy. There are other viable assets that have well studied and well documented track histories.

Crypto currencies are best compared to pink sheets prior to increased regulation, and no one in their right mind would tell you to buy pink sheets to hedge against economic downturn even if their favorite did show a 10000% increase in value.

>There are other viable assets that have well studied and well documented track histories.

can you expand on that?

God this point doesnt make sense. Bitcoin exists in lands that are governed by men. The governments could make it valueless at the first sign of threat to political currency. BTC is not a hedge, it's just an asset class that is growing fast and gaining attention faster than adoption.

If they were properly hedged then there would be no profit from Bitcoin going up. Global companies should be hedged so that currencies going up or down do not affect performance. Unless you’re betting on a particular currency.

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