Life Gets Cheaper For Bitcoiners

in LeoFinance10 days ago

Hey Jessavers

The more I learn about inflation, the harder it becomes as a topic, it is so nuanced and hard to really peg down one theory over another. You see some things are going down in price, like web services that we use, we have access to free services like messaging apps which drastically lowered the cost to communicate and on the other side homes have shot up in price like a rocket.

We live in a world where some markets have massive deflationary forces, and others have strong inflationary forces. They somewhat offset one another in some ways when trying to make a general calculation.

I don't think that I need to be a professional macroeconomist to know that my cash is losing value when prices for things I want weekly and monthly continue to rise. As wages are flat living expenses, continue to rise, and without much room to increase your salary, you have to start tightening the belt.

A snapshot into South African inflation

I don't know how it feels for other countries, but things have moved up in nominal terms pretty quickly. If we take a look at the last 12 years (2006 -2018), just looking at the figure you can see double or tripling of the price.

ProductPrice 20062018Annaulised Inflation over 12 years
FLORA MARGARINER9.49R30.9918.87%
FIVE ROSES TEAR13.95R36.9913.76%
LONGLIFE MILKR5.75R13.9912.32%
WHITE BREADR3.75R12.9920.53%
SPEKO RICER7.59R19.9913.61%
ICE CREAMR18.99R43.9910.97%
SIX PACK SOFT DRINKR16.70R36.99 (for a four-pack)10.12%

If we work out the final one with the inflation reduction of the 6 pack reduced to a 4 pack you get a 19.3% increase each year for the 12 years.

I can tell you one thing, my bloody wages ain't moving up at these rates each year so where does that extra purchasing power have to come from? My savings naturally, and for those who don't have savings, their paycheque brings them less and less.

According to


Yes, we can argue that the price of data has come down or some other shit, but I'm not fucking buying data every day, I am buying things I stuff in my belly, and it's eating more of my paycheque each week.

However, if I was to do that same calculation in Bitcoin.

ProductPrice 20062018Price in BTC
FLORA MARGARINER9.49R30.990.00056790
FIVE ROSES TEAR13.95R36.990.00067785
LONGLIFE MILKR5.75R13.990.00025637
WHITE BREADR3.75R12.990.00023804
SPEKO RICER7.59R19.990.00036632
ICE CREAMR18.99R43.990.00080613
FROZEN CHICKENR21.89R69.990.00128259
SIX PACK SOFT DRINKR16.70R36.99 (for a four-pack)0.00067785

Since we didn't have BTC in 2006, I cannot provide a price comparison, but I can do one for 2018 to show you how many sats it would cost you to purchase these items.

Note: Calculations one at BTC's lowest price in 2018 which is $3 3781.81 or ZAR 54 569

A decade or more of debasement

When pricing things in Bitcoin in the last decade, you can see how cheap goods and services have actually become and for Bitcoiners who hold on to their savings in the asset.

I think it will continue to show the truth of what prices should be like, especially once the asset is firmly in the trillion-dollar market cap range and volatility reduces considerably.

As a South African, you can see why I am so bullish on Bitcoin when my poor purchasing is being taken from me through no fault of my own, and I've needed to find ways to protect it.

I don't see this trend reversing in the slightest, and it's only going to push more of us down the socio-economic ladder until the economy reaches a tipping point.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I actually start pricing everything in sats now, I have to remember that no one else does though and that's when people give me funny looks when I tell them cereal costs 50k 😁

Lol I love how when BTC goes up on that day lets say 10% you like oh cool everything is 10% off today

In late 1980s Yugoslavia people were experiencing the same problem. Monthly wages in Yugoslav dinars used to evaporate and those who wanted to save money had to do it by buying D-Marks on black market.

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That's an interesting piece of history which has happened here too with the Zimbabwean dollar with citizens opting for dollars or Rands instead. Since there has been a fiat alternative for people to jump to I guess that was natural but now that we're seeing all fiat falling faster and faster even the world reserve currency, its going to be interesting to see how consumers and markets react

These are very interesting stats and eye opener.
Thanks for sharing.
This is really a different view point. i always compare the bitcoin price to $ but i think i should start comparing it with the actual value of service or goods.

Comparing to $ or your local fiat only gives you a snapshot into value, what you want is not a number, what you want is increased purchasing power, which is what BTC is giving me! I am pretty happy with the way its gone and the amount i've put into it.

I am pretty shocked at how quickly price inflation can eat into your grocery budget though

it's funny that with the whole situation getting shitier and with the rise of cryptos once again, everyone wanna get invovled!

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Hopefully, it doesn't come to that level gosh I can't imagine living under hyperinflation, I hope that Bitcoin and crypto helps put a break on all this cash devaluation, so people can still live their lives and have something of value to put away into crypto lol no point trying to buy Bitcoin if groceries are going up 100% a year

Crypto is the future and when it is obvious early adopters like yourself will be way ahead of the game.

Lol it's been proven time and time again, look at the first Youtubers, like pewdie pie he took a chance on a silly video platform now look at him multimillionaire, same with many instagrammers and that's just a fraction of what crypto can achieve

you're right about the cost of "real life" things but you've positioned yourself well in crypto, especially hive things. I imagine you'll have a nice income as your progress on the chain.

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I do hope so, I am not banking only on crypto though, I don't want to have all my eggs in one basket and leave myself open to too much downside from changes in the way things progress

I hear you on that but I think you are involved in cryptos where you can earn with stake so as long as they have at least some value you can recover some losses. The stock market is an actual propt up ponzi scheme so that can be just as risky as things get less stable. some type of crypto will be massive we just don't know what. My weird guess in bitcoin cash. I've never bought it but in my gut I think that's the one that will be adopted for mass use first.

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I don't any Bitcoin cash but I don't see it doing much to be honest, Its such a small subset of the market and has really never had much volume testing it just sort of hangs around there. If it helps people and they like it by all means, But I am not really a fan of the project

Groceries prices have risen about 2×/3×, but ordinary persons's incomes have not risen.
As consumables become more plentiful, expenditures increase.
People suffer bothers more as inflation increases.

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What would you say has been the time frame for a 2x or 3x increase I mean for us that would be something like 5 - 8 years to double looking at the products I highlighted, would yours be faster or slower?

I have said that based on time frame in your post.

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@chekohler, Prices of more important aspects of life rising and vice versa. Stay blessed.