Twetch ·
GIRL FIGHTING AGAINST 8% INFLATION PUTS NET WORTH IN CRYPTO AND LOSES 15%
Looks like the “hedge against inflation” narrative may have finally crumbled. We have been contacted via e-mail by a Ukranian refugee. A girl trying to escape Ukraine before the Russian invasion apparently placed her entire net worth into Bitcoin Core. She hoped to retrieve the money when she arrived safely across the border of Poland because this was exactly the type of scenario BTC Maxis claimed was the precise use case for BTC.
After 3 weeks of preparations her family finally made the journey. She uploaded their money to an exchange and converted it 100% into Bitcoin Core on the advice of a Youtuber. Through our correspondence of e-mails we didn't get many details of the journey to Poland only that is was difficult and stressful.
Upon arrival with acquaintances near Warsaw, she eventually acquired a new computer to access her family's modest crypto account. She was shocked, however, to see that during the 2 month transition Bitcoin had dropped over 13%. In other words, her family had lost 13% of their net worth.
This didn't compute at first, she wrote us, because she was told for two years that Bitcoin was “the hardest money on Earth” and the best "hedge against inflation.”
She explained to the Cryptographic Post that she then re-watched many internet videos of Moonbois saying cryptocurrency was indeed a technological innovation that could defeat inflation. But since inflation was only 8%, she said she "could have easily outperformed Bitcoin by just sticking cash into her bra."
Curious about what had happened to her family finances, she decided to run the mathematics for herself. She also sent us her calculations to double-check. Keep in mind, this was all translated from Ukranian by the Google Translator, but she basically said the following:
“For something to be a hedge against inflation it cannot drop in value more than the rate of inflation. Otherwise you just have a scam. WTF is this?”
We checked it out and her math did add up. It seems that if an object is losing value faster than the rate of inflation that it's not technically possible for that object to be a hedge against inflation.
The girl we will call “Marta” to protect her identity, says after all was said and done she had:
Paid a fee to convert her Ukranian Hryvnia (UAH) into US Dollars (losing money).
Paid another fee at the Crypto Exchange to convert the US Dollars into BTC (lost money again).
The exchange wants yet another fee to convert BTC back to USD or Polish Zloty (she will lose money a third time).
To add insult to injury, the BTC isn't worth what she originally bought if for (13% less valuable).
She stands to lose money 4 times to regain access to her money and this leakiness doesn't resemble the 'perfect financial battery' described by Michael Saylor. Marta had started with $2,000 USD and now has $1670 attempting to protect herself against inflation.
She was convinced by internet videos that Bitcoin could stop an 8% loss but instead it caused damage to her financial situation. She says she “paid a bunch of middlemen to watch her money" and asks, "how this is different from the gansterism she was trying to escape in the first place?"
She also says now that she has learned her lesson the hard way, the next time her country is invaded she will "just put paper money up her ass to outperform Bitcoin."
____________________________________
We earn our money the hard way through microtransactions and donations and appreciate your support. We could also use approximately one million dollars to fund our operation so if you have that laying around please donate using the "send money" feature in a reply. Thanks!