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Author Topic: BitTeaser: Surprisingly stable currency, the most stable on the market  (Read 761 times)

BitTeaser

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Maybe surprisingly, but there is one and only fiat currency, which is extremely stable. The currency is stable for more than twenty years, and is used by millions of people. Most of us do not even think about this currency as applicable, but it is way more reliable than US dollar, EUR, GBP, and RUR for sure. Last year, the currency Last year, the currency has risen by almost 50% in comparison with the US dollar! 
Guessed it? Somali shilling it is.



Somali shilling

When Somalia eliminated Central Bank, the shilling has not disappeared anywhere from the market. If you look at the Somali Shilling today searching photos of currency in Google, you will see that money are very old.  But they did not come out of circulation because people are willing to use them in exchange.
And for 20 years, despite the fact that in 2011, the Transitional Federal Government (TFG) again tried to create unnecessary for people, but necessary for the government - the Central Bank, in order to re-establish the monopoly of the state of counterfeiters and to force Somalis use the money of the state, in fact, praise the people, this government movement completely failed.   Somalis ignore the TFG and the Central Bank and the people continue to use the old and reliable money. For 20 years, the Somali shilling (without the Central Bank) increased by almost 3.5 times against the dollar. But it is different to bitcoin, in 2010 you could buy 0.0065 btc for Somali shilling, and today it is approximately 0.000001 btc.
During the hyperinflation in 1991, when the authorities in Somalia were Marxists who had utopic idea to build another concentration camp with bright future, was released an incredible amount of banknotes. Therefore, even taking into consideration the fact that the Somali shilling gradually fade, as any paper, this currency has a margin of safety. In the end, if the situation in Somalia will continue for another few years or even decades, people will create new money, which this time will be completely private.
Although nowadays Somali shilling is an example of private money, after all, people use money freely and without violence, meaning with no government agencies, officials or public servants. This explains their stability and gradual deflation, which, in turn, contributes to the accumulation and the creation of enterprises.



Actually, there is no kind of GDP, but if you look at this as a big picture, including government revenue (e.g. the loss of population due to the tax and inflation), the conclusion is that Somalis living without financial officials, gradually getting richer. Somali schilling of 20 years today is worth more than a dollar more expensive than the ruble, higher than the euro and hryvnia.
Even the Chinese yuan, which during 10 years is getting more expensive from 8 yuan per dollar to 5, in this respect, is not a model. Only recently the Chinese stock exchanges and banks began to collapse. And then the Chinese financial institutions, including Central Bank began a fake RMB, depriving the private sector savings thanks to the monopoly. If the Chinese started to invest more in bitcoin or Somali shilling, they would have lost nothing or very little.
However, even an investment in dollars is more risky than investing in gold, cryptocurrency and the Somali Shilling, because USD is getting cheaper too. Yes, this process is slower than other local "national" currencies are facing, but it is still there. And it will continue losing value, as any fiat currency, which "supports" financial government plan.
To conclude, national currencies will always have value troubles, while countries have the Central Bank, and people being told how secure, reliable and stable the national currency is or will be, it is the opposite.

Via BitTeaser - bitcoin ppc network
https://www.bitteaser.com/press-releases/?title=surprisingly-stable-currency-the-most-stable-on-the-market

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