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1920s Germany hyper-inflation and stocks


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Thought this paragraph in the Economist was interesting. Wanted to share it with you all:


AT THE beginning of 1923 the German mark stood at 7,260 to the dollar. By October, hyperinflation had pushed that rate to 65 billion. Fixed incomes and savings became worthless. But one readily available investment retained its value. According to Frederick Taylor, the author of a new history of the period, shares in German firms, by and large, kept pace with the inflation, protecting from ruin the lucky few who had invested in them.



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Guest hellsten

Thank you. I wonder how Bitcoins would trade under hyperinflation. Would they become more valuable, or would the governments shut the whole system down? Or would people switch back to beaver furs:



Fur, in the form of the beaver pelt, was the single most important commodity in New Netherland.

The value of a beaver pelt was based on supply and demand as well as on pelt quality.




The confusion and price inflation resulting from the depreciation of wampum value caused great economic hardship for those laborers who held their savings in wampum. Wampum lost 25% of its value as it dropped from 8 to 10 guilders per beaver. Complaints mounted.


Maybe beaver furs are the closest thing in history we've had to Bitcoins? Mining beaver furs takes a lot of time and resources. The supply is very limited. :D


To clarify, I still think bitcoins have value, to those who think it has value.

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