The Impact of a Single Currency (crypto) on Developing Countries

[Ardzii]

Hi there everyone!

I'll start this discussion by a disclaimer to avoid trolling or being trolled: First off, I'm sorry if this has been already reviewed and discussed. I tried to look it up but couldn't find anything directly treating this subject though. Secondly, I have to be honest, I'm no economist. It's just a hobby and I have become quite fascinated with this science so... Please, excuse me if I make mistakes. Obviously I will be grateful to anyone willing to correct me. Last, don't read me wrong and I'd rather put current position clear: I'm absolutely for a single currency.


Back on track:

As far as I understand, for now, there is no central agency (such as the FED) to control the supply of Bitcoin (I choose to talk exclusively about Bitcoin here because it's the most representative crypto-currency in my opinion). The main objective however is to have everyone on the planet using Bitcoin for relatively obvious reasons such as transparency, low transaction costs, security etc...
Evidently, there are many barriers that we still need to tackle before even thinking as Bitcoin (or any other altcoin that you might prefer) being a worldwide exchange reference but whatever, I'll go ahead with my concerns anyway...

In Europe, the adoption of the Euro as a single currency is subject to frenetic debates (even more with the recent "Brexit" indirectly supporting some obscure right wing parties in France and the Netherlands -among others- wanting to push for an exit as well). Moreover some economists have argued that the adoption of the Euro was made too quickly and explain that the single currency, even if it helped a lot Europeans exchange within and outside the Eurozone and build a stronger block (among other positive effect that the Euro has had), has hurt to some extent the weakest economies (Spain, Italy, Portugal, Greece, Ireland...).

The argument is based on the fact that the Euro was way too expensive for these economies thus boosted the countries' consumption (increasing exports has "they have more money") and decreased importantly their exports (for not being competitive anymore) which impacted negatively their net exports and ultimately increased their sovereign debts. Parallely, it also fomented some price bubbles in most of these countries  Spain's bubble, for instance, was specially articulated around real estate. The government obviously played a major role by not controlling the incentives but the Euro might have been (in a lesser extent) a factor as well.

Again I know that we're not there yet, but why should we think that the Bitcoin, with an exchange price of over $580 at the time of this writting, would not result on the same kind of phenomenon?

Thanks in advance to you all for your interventions!

Best!

[Das]

Bitcoin is a "leveller," it won't create a deflation/inflation.

If bitcoins becomes a one world currency, poor countries do not have to buy the dollar equivalent of bitcoin like it is done now. Bitcoins would be the fiat.

[Ardzii]

Bitcoin is a "leveller," it won't create a deflation/inflation.

If bitcoins becomes a one world currency, poor countries do not have to buy the dollar equivalent of bitcoin like it is done now. Bitcoins would be the fiat.

I'm sorry I'm not sure to understand the first part of your intervention. How is bitcoin never going to create inflation?

[botany]

Inflation (in moderate levels) is not a demon.
It might make sense for developing countries to expand monetarily, invest in infrastructure and achieve growth.
If you use Bitcoin, countries cannot set their monetary policy.

[Maesters1-]

i think there will be a very good impact of bitcoin specially on developing countries, to me their economy will boost up, their will have an opportunity to level their currency with developed countries as bitcoin has an equal price every where, and many more.