Source
r/personalfinance•
solid437

I don't know if this belongs here but international currency reevaluation. What do you know about it and should I be buying as many denar/dong as I can?

Investing

I'm a bartender and one of my regulars informed me about the reevaluation happening this year and that the dong/denar are increasing close to 1000x in value. Is it worth my trouble at all or am I gonna see a huge return on investment here? I'm completely blind to the situation so I'm looking to make as much of an informed decision as I can. I missed out on bitcoin back when it was a quarter and don't wanna miss another opportunity.

Posted May 16, 2016, 7:29 PM UTC

07
OldManMoneyBags•

Some general finance rules of thumb:

  1. Don't invest in anything you don't understand

  2. If it's too good to be true, it's too good to be true

  3. Don't take the advice of strangers!

This has been buzzing around for a while, and I don't want to outright call this a scam, but it's the next closest thing. This would be a major shift in global economic and currency policy that is unlikely to happen any time in the near future.

1
solid437OP•

Rule #2 is why I'm trying to find out. I know that Russia and China are trying to remove the US dollar as the global exchange currency and this might be how they're trying to enact that change but I'm like I said pretty blind to it.

1
Chuck_Peligro•

When 1,000 of something becomes 1 of something, you can't buy 1,000 more of everything. That makes no sense. If anything inflation is out of control and the money's value is eroding fast. Also, don't forget that exchange rates are a negative sum gain.

1
solid437OP•

That's my same mindset. If they did happen to go like that, the regular farmers and blue collar workers would just become millionaires.

1
Chuck_Peligro•

If you want a good idea of what currency is really worth, check out the black market values.

1
solid437OP•

How does one do that

1
Chuck_Peligro•

Practical example. In Brazil:

  • R$1 was worth CR$2,750 at reevaluation in 1994
  • CR$2,750 was worth Cr$2,750,000 at reevaluation in 1993
  • Cr$2,750,000 was worth NCz$2,750,000,000 at reevaluation in 1990
  • NCz$2,7500,000,000 was worth Cz$2,750,000,000,000 at reevaluation in 1989
  • Cz$2,750,000,000,000 was worth Cr$2,750,000,000,000,000 at reevaluation in 1986
  • Cr$2,750,000,000,000,000 was worth 2,750,000,000,000,000,000 réis in 1967

The real might seem like it's worth 2.75 quintillion times as much as its predecessor. The inflation rate of 1,142,332,741,811,850% in that time period kinda put a dent in that, though.

1