How is Bitcoin's social value manifested in countries with severe currency depreciation (e.g., Venezuela, Zimbabwe)?

Okay, let me share my thoughts.

Imagine living in a country where the money in your hand is like rapidly melting ice cream. Today, 100 units of your currency might buy you a carton of milk; next week, it might only buy a single bottle; and a month later, that same 100 might not even buy a plastic bag. This is the daily reality that people in Venezuela or Zimbabwe have experienced or are currently experiencing. We call this "hyperinflation."

In such circumstances, governments and banks have lost everyone's trust. Because the government can print money without limit, the money you painstakingly saved turns into worthless paper while you sleep. This is where Bitcoin's value becomes apparent. It's not some high-tech investment speculation; it's more like a "financial life raft."

Specifically, its social value is reflected in several aspects:

1. A 'Safe Deposit Box' for Property: An Ice Cream That Doesn't Melt

When local currency can't be trusted, what do people do? The most direct way is to convert their money into something else to preserve its value.

In the past, people would rush to exchange for US dollars or gold. However, in countries with collapsing economies, governments strictly control foreign exchange, making it very difficult to obtain US dollars through official channels. Even if you secretly get cash, it's not safe at home. Deposit it in a bank? Banks might collapse or restrict withdrawals at any time.

Bitcoin then becomes an option. Its total supply is fixed at 21 million; no one can over-issue it. This makes it somewhat like "digital gold." You can find a way to convert your rapidly depreciating local currency into Bitcoin. As long as you safeguard your private key (which can be understood as an extremely complex password), your assets exist on a global computer network, belonging to no single country. The government of your country cannot freeze or confiscate it. Your wealth finally finds a relatively safe "safe deposit box" and won't evaporate into thin air anymore.

2. A 'Underground Channel' for Global Free Remittances

In these countries, sending money abroad or receiving remittances from relatives overseas is extremely difficult and expensive.

For example, how does a US company pay a Venezuelan freelancer who designed something for them? Through traditional bank transfers, first, the fees are terrifyingly high. Second, once those US dollars arrive at a local bank, they might be forcibly converted into rapidly depreciating local currency, effectively making the work pointless.

But if Bitcoin is used for payment, the situation is completely different. The US client can directly send Bitcoin to the designer's wallet address. It arrives within minutes to an hour, transaction fees are relatively low, and the entire process bypasses the oversight of banks and governments in both countries. The designer can hold onto the received Bitcoin to preserve its value, or, when money is needed, exchange it for small amounts of US dollar cash or local currency through underground markets (both online and offline) to cover living expenses.

This effectively opens a lifeline connecting isolated citizens to the global economy.

3. The Freedom to 'Be Your Own Bank'

In normal countries, we take banks for granted. But in a place where even basic order has collapsed, banks might limit how much you can withdraw daily, or even close down entirely. Your money in the bank isn't entirely yours.

One of Bitcoin's core tenets is "Be your own bank." As long as you have a smartphone with internet access, you can have a Bitcoin wallet. The assets in this wallet are entirely under your control. As long as you don't reveal your private key, no one can access it. This absolute control over one's own property, in such extreme circumstances, brings not just security but also a sense of dignity and freedom.

Of course, it must be made clear that Bitcoin is not a perfect panacea.

• Extreme Price Volatility: Its price is like a roller coaster; it might go up 20% today and drop 30% tomorrow. For those relying on it to preserve value, this risk is significant.
• Barrier to Entry: For ordinary people, understanding concepts like wallets, private keys, and addresses requires a learning curve. Furthermore, internet and electricity can be unstable in these countries.
• Security Risks: If you accidentally lose your private key or your phone is hacked, your money will be gone forever.

In summary:

From our perspective, Bitcoin might be a high-risk investment. But in places where the local currency and financial system have completely collapsed, Bitcoin's role transforms. It's no longer a "nice-to-have" tool but rather a "life-saving" survival tool. It offers a choice—a choice to protect private property, connect to the outside world, and take control of one's financial destiny.

Its social value lies in providing people with a "life raft"—albeit a rudimentary one that can at least float—when the official ship is sinking.