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Author Topic: Countries with weak economies can use cryptocurrency instead the dollars.  (Read 1385 times)
Lamalicious
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April 18, 2018, 05:33:02 AM
 #101

Venezuela has tried to go this route and eventually got the new US sanctions.  On the other hand, after the announcement of new sanctions, the demand for Petro rose sharply. I think it is necessary to calculate all the advantages and disadvantages for each country.

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Basmic
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April 18, 2018, 10:53:52 AM
 #102

Venezuela has tried to go this route and eventually got the new US sanctions.  On the other hand, after the announcement of new sanctions, the demand for Petro rose sharply. I think it is necessary to calculate all the advantages and disadvantages for each country.
How do you know the demand for Petro grew? I have not seen any exchange on which this cryptocurrency is traded. I heard the Russians want to sell parts for Petro. But this is not an indicator of Petro's popularity. Putin supports Maduro and will do everything he can to support Maduro. I do not believe in the popularity of public cryptocurrencies.
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April 19, 2018, 01:37:59 PM
 #103

Countries with weak economies and unstable currencies can use not the dollars but the crypto currency as a reserve unit. With such a statement made at a conference on the 20th anniversary of the independence of the Bank of England, the managing director of the International Monetary Fund (IMF) Christine Lagarde.

What do you think? Is it possible?
I did not heard anything about this news, nut may you are right. I have a question, buying bitcoin in this day is only being deal as a currency business and those people invest in bitcoin who have extra money to invest in bitcoin and make more and more money, how can the people with low income cay buy bitcoin and use it instead of dollars, because dollar is just a currency and bitcoin is a currency and business too?
Third world countries it seems  no right to left up there status but, crypto currency has no boundaries as long as their citizens can invest even in little amount and then earn a profit in bitcoin it is already  a big help for them, dollars is very hard to earn because it is  controlled.

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April 19, 2018, 04:41:30 PM
 #104

that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.

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April 20, 2018, 11:45:35 AM
 #105

that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.
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April 20, 2018, 12:24:34 PM
 #106

that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.

I think it's not the main problem and reason,First of all governments can not control cryptocurrencies emission,despite the fact that usually there is  limited supply and cryptocurrencies are making emission with mathematical algorithms and not by central administrators and central banks.So just imagine how much electricity do they need,For example let's get bitcoin,Bitcoin's energy usage is very hug(For example as I remember correctly in Iceland bitcoin miners used more electricity than citizens for their daily need in one year).This is a very complex issue and needs distinctive approaches,Special structures must consider every details to do something like this,new power-stations,Hydro station,solar energy,other alternative energy sources,etc.
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April 20, 2018, 02:46:50 PM
 #107

The main point is that you need enough currency of your country or dollars to purchase cryptocurrencies. It can be problematic in countries with weak economies for obvious reasons
Basmic
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April 21, 2018, 03:27:29 PM
 #108

that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.

I think it's not the main problem and reason,First of all governments can not control cryptocurrencies emission,despite the fact that usually there is  limited supply and cryptocurrencies are making emission with mathematical algorithms and not by central administrators and central banks.So just imagine how much electricity do they need,For example let's get bitcoin,Bitcoin's energy usage is very hug(For example as I remember correctly in Iceland bitcoin miners used more electricity than citizens for their daily need in one year).This is a very complex issue and needs distinctive approaches,Special structures must consider every details to do something like this,new power-stations,Hydro station,solar energy,other alternative energy sources,etc.

This is not a problem. Many countries buy electricity abroad. If the price of electricity does not exceed profitability, I see no problems. But this problem applies only to miners. Normal users don't consume a lot of electricity. Now the majority of miners are concentrated in China. They ensure the use of cryptocurrencies around the world.
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