[Graphic] Bitcoin vs. The Government.

[User365]

Thank you for this awesome graphic, I sometimes explain bitcoin in detail to people who are really interesed and I will keep this graphic in case someone wants such an explanation in future.

But fiat would be a better name instead of government 

[1715441418]

1715441418

[1715441418]

1715441418

[1715441418]

1715441418

[1715441418]

1715441418

[1715441418]

1715441418

[StarenseN]

the problem to trade oil, for example, is directly linked to the availability of the real dollar market (ie. banks channels like swift).

but, now, they can sell oil for bitcoins. 
and then, bitcoins can provide trade in the country for others assets like food, hospital, and ... store of value.

You compare dollar and bolivar which is non-sense as I told, problem is not fiat, but the lack of market economy (capitalism) which indeniably thrive the progress and prosperity.

[andrei56]

at the beginning, gov. control money : and it fail (Roma Empire)
at the second level, gov. allow corporates to create money : and they fail (FIAT history)

so now, money need to be restrain by mathematic rules : perhaps, a success (like P2P file sharing).

 

It seems so logical like someone should have come up with it when the internet came out. It's kind of surprising you or I didn't come up with this idea. Not that I ever would have been able to implement it myself though. Could you.. Satoshi!?

In fact people have been looking for something like bitcoin since the internet was created, but there were many issues, one of those was double spend and it was not until satoshi created the blockchain that everything came together so bitcoin was created as soon as it was technologically possible.

[Meuh6879]

cool and simple image.

Round 2 : http://www.zerohedge.com/news/2017-08-02/venezuela-bolivar-loses-third-its-value-past-week

the exponential rise in M2, the sum of cash, together with checking, savings, and other deposits, also means an exponential rise in the amount of currency circulating. As a result, Venezuela's money supply is up 384% in the last year. In contrast, the United States' money supply is up 5.5% in the same period.

This means that Venezuelans are forced to carry huge bundles of cash to make basic purchases, if they can afford to do so given weekly price rises on many goods of course.

This means hyperinflation.

The venezuela is the 28st country in the world with M2 stock money (before 2017) : https://www.cia.gov/library/publications/the-world-factbook/rankorder/2215rank.html

Bitcoin is the 69st = https://bitcointalk.org/index.php?topic=178336.msg20567883#msg20567883

[CS101]

Not really accurate, but sparkles an interesting discussion.

[Shamie1002]

Full reasons to adopt bitcoin and left the old fiat. But we must say bitcoin isn't ready for a mass adoption yet. If a whole country starts using the crypto currency we won't be able to do all the transactions and it will be worthless like bolívar or any other currency like this.
Theoretically bitcoin is perfect, but on the practice we are facing some issues very imminent to be solved.

I agree, massive population in Bitcoin is hard to manage. For instance, our managers here takes time to dissemenate our rates how much more for the coming years.
And I think security will be more at risk when adoptation continous.

[senin]

I don't know the technicalities since I still use an online wallet but they better fix the transaction time and fees first before this would be adopted as currency by any country. Right now it's mostly a store of value because of the fluctuating prices and I see people complaining that  they're not using their bitcoin because of the increased fee (has not affected me yet).


But yes, in theory it should eventually become a competitor for fiat when it comes to daily use. The only thing banks would be left with would probably loans.

  Bitcoin can not in practice be used for daily small purchases. It will not be profitable. And banks will find work not only for lending. Part of the transactions will always be made in ordinary currency for various reasons. Yes, and settlements with the state on the payment of taxes will also be made in the national currency and therefore, customers of banks will be forced to have on their account a national currency. Therefore, banks will give services for the purchase and sale of crypto currency for a decent commission. Therefore, for banks, there is always work

[Meuh6879]

Round 3 : http://www.zerohedge.com/news/2017-08-04/venezuela-currency-disintegrates-down-16-today

Inflation of a "currency" (of a country) VS. the Bitcoin value and functionalities.

"Every time the black dollar goes up, you're poorer," resignedly said Juan Zabala, an executive in a reinsurance business in Caracas.

His salary is 800,000 bolivares per month.

On Thursday, that was worth $47 at the parallel rate. A year ago, it was $200.

The inexorable dive of the money was one of the most-discussed signs of the "uncertainty" created by the appointment of the Constituent Assembly, which starts work Friday.

And this : https://www.coinhills.com/market/xbt-bsf/

Result : don't trust your currency or your bank or your country, only trust Bitcoin network rules.

[ivrynx]

Goverments should be allowing cryptocurrency in their country since it is a good advancement of technology, it will help their country grow economically, though  without taxation, many can xreate businesses and make their lives easy and for sure they will create something that will help their countrymen, governments should also give lessons or seminars that will encourage their citizens to become businessmen in order to create jobs.

[kuyaJ]

It is more advantage from bitcoin to fiat it contains less hustle from doing a fiat. How about the poor once if bitcoin will be our daily expenses? How they can pay if they didnt have an phone or computer that they use for buy?.

[nonconformist]

this is a very good graphic

[xypos]

Round 3 : http://www.zerohedge.com/news/2017-08-04/venezuela-currency-disintegrates-down-16-today

Inflation of a "currency" (of a country) VS. the Bitcoin value and functionalities.

"Every time the black dollar goes up, you're poorer," resignedly said Juan Zabala, an executive in a reinsurance business in Caracas.

His salary is 800,000 bolivares per month.

On Thursday, that was worth $47 at the parallel rate. A year ago, it was $200.

The inexorable dive of the money was one of the most-discussed signs of the "uncertainty" created by the appointment of the Constituent Assembly, which starts work Friday.

And this : https://www.coinhills.com/market/xbt-bsf/

Result : don't trust your currency or your bank or your country, only trust Bitcoin network rules.

I love your graphs and infographics, man.

I believe that Venezuela is the ultimate economic disaster in the 21st century after Zimbabwe. But on the other hand i sort of embrace the Venezuelan economic crisis because it truly shows how dangerous it is to have a central entity having the power of issuing money insetad of the money being generated in a decentralized way.

It seems odd to me that a lot of people get comfortable with fiat currency just because it is going strong at the moment. They don't hedge against a fiat collapse with bitcoin, silver, gold, anything. All they do is blindly put their savings in a fiat currency and leave it in a bank, only for it to depreciate in alue like hell. Venezuelans right now are learning a valuable lesson. And it's not surprising to me that a lot of people are actually switching to selling their Venezuelan bolivars for bitcoin as soon as they get their pay.

[SvenBomvolen]

Goverments should be allowing cryptocurrency in their country since it is a good advancement of technology, it will help their country grow economically, though  without taxation, many can xreate businesses and make their lives easy and for sure they will create something that will help their countrymen, governments should also give lessons or seminars that will encourage their citizens to become businessmen in order to create jobs.

You just called all the positive sides of crypto-currencies use. But you forgot about negative sides. it is not a secret that Bitcoin is used for buying drugs, terroristic support and corruption. Everything because of hidden identity of users.
So all governments are staying infront of the choice now. Bitcoin is not forbidden in many countries yet, but I suppose if it will became clear that some old and new terracts will be financed through this crypto-currency, I think the dark days will come to bitcoin.

[senin]

Bitcoin, like the other crypto currency, will always conflict with governments in some ways, because bitcoin is decentralized and anonymous by its nature. This will always be disliked by governments that are used to command and control everything. The way to rub and seek consensus will be long. However, technical progress can not be stopped. The Internet was also at first disliked by some authoritarian governments because of the unrestricted dissemination of information, but this is already in the past. Therefore, the crypto currency will win.

[Theb]

Here is another classic example of comparing a cryptocurrency and a fiat currency. Obviously Fiat currency is controlled by the government to make it more stable and in fact inflation is not a bad thing it signifies demand for the supply. Also if we don't have a stable inflation rate our economy will have a bad transition because of it. I don't know but we can look both ways for Bitcoin and Fiat currency but we all know their own strenghts and weaknesses.

[Meuh6879]

cool and simple image.

Round 4 : Bitcoin save my Life.
http://www.zerohedge.com/news/2017-08-23/bitcoin-saved-my-life

So he buys bitcoins and sells them to a friend in Colombia - who won’t accept bolivars. The friend then buys cancer treatment and medical supplies for Eli.

[Jombrangs]

In my own opinion, the government of different countries has a great relationship from the company of bitcoin. The government will promote the services of bitcoin to the public which leads to a high demand while Bitcoin can help the government to establish a well-civilized country wherein the there will centralize and systematic process in all aspect.

[Blockfolioz]

There are countries that have promoted bitcoin as well given importance to the regular fiat. Same time there are more countries that have banned bitcoin as well some has made legal with restrictions. Around the world different forms of acceptance is found and hope in future everywhere acceptance will be found.

[icanscript]

The conflict of the credit and financial system of all crypto-currency system is unavoidable. The state and officials will be on the side of the co-operative financial system. The results of the conflict, we will see in the near future.

[jokowi]

In my own opinion, the government of different countries has a great relationship from the company of bitcoin. The government will promote the services of bitcoin to the public which leads to a high demand while Bitcoin can help the government to establish a well-civilized country wherein the there will centralize and systematic process in all aspect.

I do not think bitcoin can influence the politics of the nations of the world, or say otherwise, it can not help to establish civilized nations. But above all, it represents a completely new, secure and secure technology. And it is what humanity is aiming for.