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August 22, 2013, 09:42:06 AM |
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The purpose of local currency is usually the exact opposite of one of Bitcoin's greatest benefits. Whereas local currency is used to promote a form of localized protectionism (keep money in town), Bitcoin permits easy transactions cross-country and even overseas.
An alt-coin could be a reasonable alternative to Bitcoin, though, if it were only accepted within one province. For example, ChinaCoin was popular for a while, but offered nothing particularly exciting, so died. If it were given some purpose (like protectionism), it might be viable. However, local currencies generally don't attract a high level of enthusiasm and usually die out within a few decades, given the benefits are moreso for local merchants than consumers. This tends to be true of protectionism itself.
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