Why Is Bitcoin Helpful in Times of Global Instability?

July 23, 2019, by Interstein N.
Some countries have had their local currency undergo rapid devaluation or inflation. How does Bitcoin provide an alternative store of value?

In some parts of the world, national currencies are no longer a stable store of value. Turkey, for example, has seen its lira become weaker and weaker over time. Right now, Turkey is planning to increase foreign exchange taxes in order to boost the value of the lira once again, but this may not be enough to solve the problem.

Turkey is not alone: Zimbabwe, Argentina, Venezuela, and several other countries have all seen their currencies lose value as well. The end result is that many national and fiat currencies are no longer a reliable store of value or useful for day-to-day transactions. So, where can you turn during a national currency crisis?

Bitcoin As a Store of Value

Bitcoin is an effective way of storing wealth, and it is a good long-term investment. In fact, Bitcoin is attracting a lot of attention in this regard. Jehan Chu, co-founder of Kinetic Capital, has recently noted that there is an “increasing consensus” among investors that Bitcoin is a “legitimate store of value for the digital age.”

Although Bitcoin regularly undergoes price fluctuations, assets such as gold experience fluctuations as well. Fortunately, Bitcoin’s price fluctuations are often less severe than the price plunges seen in some national currencies. Plus, Bitcoin is expected to gain value in the future, making it an excellent long-term investment.

A Portable Option

If you invest in Bitcoin as a store of value, you’ll also notice that it is more portable and easy to transfer than many other assets. For one thing, you can circulate Bitcoin internationally. It is a very good way to send money to friends and family across borders without the need to rely on a bank or a payment company like PayPal.

Furthermore, you will be able to use Bitcoin even if your country attempts to restrict it. Zimbabwe has banned Bitcoin in an attempt to rescue its national currency. However, this ban is not fully enforceable, as Zimbabwe can only restrict financial services from handling Bitcoin―it can’t shut down or restrict access to Bitcoin itself.

Why Choose Jubiter?

By signing up with Jubiter, you’ll be able to make use of our Bitcoin exchange and online wallet. Our security practices will keep your funds safe, and our Jubiter card will allow you to spend your Bitcoin worldwide. We also comply fully with international regulations, and you can find out if we support your country here.

With Jubiter, you’ll also have the option to withdraw your funds to another wallet at any time, meaning that you’ll be able to keep using your Bitcoin funds even if your country attempts to restrict Bitcoin activity. All in all, it’s a great time to buy Bitcoin, regardless of the state that your country is currently in.

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References:

For Zimbabwe

Bitcoin P2P trading increases in Zimbabwe post-ban

Zimbabwe bans banks from processing payments for cryptocurrencies

Jehan Chu quote

For Turkey

What’s More Volatile, Cryptocurrency or the Lira?

Turkey to double forex sales tax on individuals to 0.2%

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.

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