For those of us living in countries who have a stable high value currency like the USD, GBP or EURO this makes very little difference having crypto valued against the USD. If you lived in a country that has a depreciating currency crypto becomes far more valuable as a safe haven for your wealth.
This is kind of crazy, but in reality this is very true even with the volatility of crypto that can see the portfolio value lose 90% in a short period of time. This supposed loss is not a loss and is only a loss if you sell because with patience the prices will or should return. The same cannot be said about your local currency that is being devalued against the dollar continuously as over time the wealth is eroded away.
Average exchange rate in 2013: 9.6508 ZAR
When I was travelling in the US back in 2013 the exchange rate was R9.80 or there about to the USD and today we see the exchange rate at R18.73. The local currency has lost nearly 100% of it's vale in just 11 years meaning to stay at the rate of the USD your wealth needed to double in order to just to stand still. Those earning USD, GBP or EURO don't have that type of pressure because those currencies hold their values.
What amazes me is why aren't there more people in crypto knowing it is a safe haven for holding value? The answer is actually quite easy with the majority only seeing the volatility not understanding that there are stable coins available which would safely store your wealth. Those more adventurous could get involved in crypto tokens earning far more than any institution could ever offer.
What got me onto this topic is the uncertainty in South Africa currently with no one certain which coalition combination will for the next government. Some scenarios which could happen would see the Rand lose 30% instantly. All this means is those who have their wealth in the banks or in local shares on the JSE would be 30% poorer. Those who have crypto would be unaffected keeping their wealth due to being valued in the USD currency and not the local ZAR.
The other security blanket crypto offers is you can take it with you without having to ask for permission or exchange the local currency into another currency. This has charges attached to the conversions that further erode whatever value you once had.
These are worrying times not only for investors in the country, but anyone holding the local currency as there is so much uncertainty hanging over our heads. The masses have nothing to lose as hey have nothing and in all honesty would like to see the economy crash so we can start again giving them a chance with everyone rebuilding from zero. A scary prospect knowing this is even a thought let alone a dream and is completely bonkers.