Brazil and the Curse of Its Currencies

If there's one thing Brazil's economic history has proven time and time again, it’s that no currency lasts forever. Brazil has had nine different currencies, and all of them failed in the same way: losing value until the government decided to "fix" the problem by introducing a new one.

On average, since 1900, each currency lasted only 13.9 years, and if we look at the trajectory of the Real, the question remains: how much longer can it survive?

The Graveyard of Brazilian Currencies

Every time inflation spirals out of control, the government finds the same solution: rename the currency and cut zeros, pretending that the underlying economic problems have been solved. Here’s the long list of failures:

Réis (1500-1942) → Lasted centuries but was eaten away by inflation and replaced by the Cruzeiro.

Cruzeiro (1942-1967) → Introduced to modernize the economy but quickly lost its purchasing power.

Cruzeiro Novo (1967-1970) → A redenomination that cut three zeros, but it only lasted 3 years.

Cruzeiro (1970-1986) → Inflation skyrocketed, leading to another currency shift.

Cruzado (1986-1989) → Promised stability by removing zeros, but lasted just 3 years.

Cruzado Novo (1989-1990) → Another reset, another failure, lasting just 1 year.

Cruzeiro (1990-1993) → Brought back an old name, but inflation remained unchecked.

Cruzeiro Real (1993-1994) → A short-lived transition currency, lasting just 1 year before the Real.

Real (1994-present) → ˜30 years old, it has already lost more than 85% of its purchasing power. The Real is now showing the same symptoms that led to the collapse of its predecessors. Inflation is eroding its value, and government intervention keeps distorting the market. We are just waiting for the next excuse to rename the currency and "reset" the system once again.

DREX: The Next Rebranding of Brazilian Money?

This time, the change might not come as a simple rebranding or a few zeroes being cut. The Brazilian government is already preparing DREX, a digital currency controlled by the Central Bank. Officially, it will be a "digital Real," but in reality, it could serve as a way to impose new monetary rules, redefine values, and quietly restructure the economy—just like every previous currency reset.

The pattern is clear: give a new name to an old problem and keep extracting value from citizens.

The Fate of the Real? We Don’t Know. But Bitcoin is Better.

Looking at history, it’s clear that Brazil’s fiat currencies have a built-in expiration date. The government will always find a way to reset the system, rename the currency, and erase the traces of inflation.

But for the first time in history, there is a real alternative: Bitcoin.

Unlike all of Brazil’s previous currencies, Bitcoin cannot be manipulated, inflated, or rebranded by government decree. It doesn’t rely on empty promises or central authorities that can change the rules whenever it suits them.

In the end, the Real might last a few more years or be replaced soon by DREX—but one thing is certain: BITCOIN IS BETTER.