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Author Topic: Which country might switch to BTC?  (Read 1388 times)
pvoltaire
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October 29, 2013, 12:57:31 PM
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One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

There are currently more than sixty countries who do not have their own currency listed on wikipedia https://en.wikipedia.org/wiki/Dollarization These are governments who don't think it's worth the hassle of printing and managing currency just to have a few extra economic controls.

Some countries, like Somalia, could obviously benefit, but lack the internet infrastructure. There's been a lot of talk about Argentina for example, but I know next to nothing about them. What if a private army like the infamous Kony started using it? Again, infrastructure is an issue. Maybe a rich region could declare independence from a poorer capital, and switch to BTC?

Any ideas?

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According to NIST and ECRYPT II, the cryptographic algorithms used in Bitcoin are expected to be strong until at least 2030. (After that, it will not be too difficult to transition to different algorithms.)
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balanghai
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October 29, 2013, 01:03:29 PM
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Well it's not going to be like that. There are central banks at each country regulating the currency and inflation rates. And it would make their constitution void if they'd do that. But it could be used by the citizens as a secondary if not primary currency. Also you might want to study cambodia, they're using US Dollars in street shops and using their own currency for the small change. It could be similar to that.
pvoltaire
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October 29, 2013, 01:50:18 PM
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I don't think you read my post very carefully. Check the Wikipedia link. There are 60 countries that DO NOT HAVE THEIR OWN CURRENCY. Therefore they cannot manipulate it to influence their economies.

Take Liechtenstein for example. Liechtenstein has a central bank, but they only hold gold and Swiss Francs. The Liechtensteinische Landesbank can't influence cash supply or monetary policy already! Again a Wikipedia link to back this up: http://en.wikipedia.org/wiki/National_bank_of_Liechtenstein#Cash_supply_and_distribution

Now, I don't think Liechtenstein is going to move away from CHF (or gold), but some countries with less stable economies might.

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October 29, 2013, 01:54:30 PM
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There's been a lot of talk about Argentina for example, but I know next to nothing about them.
There's a lot of talk about Argentina because they have very strict dictatorial policies about money, so some people are starting to use Bitcoin: quite the opposite of what you were seeking.

but some countries with less stable economies might.
Why and how should they do that?

How - if they already have an unstable economy, chances are they aren't skilled enough for the task, let alone do something completely new!

Why - what would they gain by accepting bitcoins, as opposite to accepting dollars?

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pvoltaire
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October 29, 2013, 02:25:24 PM
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There's a lot of talk about Argentina because they have very strict dictatorial policies about money, so some people is starting to use Bitcoin: quite the opposite of what you were seeking.
Thanks for the info. Let's agree not to mention Argentina again. Let's talk about a small pacific country with a relatively centralized population, say Cook Islands or Nauru. The higher population density would make the communications infrastructure more practical.

Quote
How - if they already have an unstable economy, chances are they aren't skilled enough for the task, let alone do something completely new!

I said "less stable than Leichtenstein", you are really twisting my words to make that mean "unstable"! According to rumour, Leichtenstein is still holding onto copious amounts of Nazi gold. I don't think there are many economies that are more stable than Leichtenstein.

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Why - what would they gain by accepting bitcoins, as opposite to accepting dollars?

The same reasons anyone accept bitcoins? If they already don't have their own currency, what would they have to lose?

Here are some possible benefits for a state:
* Save money on the transportation and storage of physical currency
* Strip the anonymity away for strong tax control(?)
* Frictionless international trade without tariffs
* circumvent embargoes.
* end counterfeiting
* boost IT and communications infrastructure

I have never been the manager of a reserve bank, so I can't confidently say which of these are serious problems, or what other problems reserve banks suffer. If I were made manager of a reserve bank, I would certainly look into cryptocurrencies, and probably get beautiful young girls to dance for me while I did it.

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October 29, 2013, 02:34:30 PM
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Out of all, zimbabwe seems to have the highest chances to switch to BTC for its own currency, since they aren't using their own currency anyway..
pvoltaire
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October 29, 2013, 02:41:32 PM
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Here's another suggestion from studying the list on Wikipedia: Gaza Strip. It has the high population density, very small, trust of government is low, there's a desire for more freedom in imports, they're poor, but I don't think they're too poor.
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October 29, 2013, 02:49:22 PM
 #8

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?


No one and for very long. One of the reason is only small % of people are able to use computer and even smaller internet.

BitcoinWalker
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October 29, 2013, 02:51:20 PM
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No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

pvoltaire
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October 29, 2013, 02:54:09 PM
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No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!
udet4food
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October 29, 2013, 02:59:53 PM
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No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!


But their banks still use fraction reserve banking, right ? So whats the difference if these countries have own currency or not  Huh
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October 29, 2013, 03:01:32 PM
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But their banks still use fraction reserve banking, right ? So whats the difference if these countries have own currency or not  Huh
And...?
You can use fractional reserve even with bitcoins, or with apples and oranges, for that matter...

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pvoltaire
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October 29, 2013, 03:04:31 PM
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One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?


No one and for very long. One of the reason is only small % of people are able to use computer and even smaller internet.

Check out the demographics information on Gaza Strip. They have a literacy rate of 99%, and five universities for a population of 1.6 million. The population density is so high, that mobile phone connections are sure to be good, and you don't need a full node to buy and sell!
BitcoinWalker
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October 29, 2013, 03:15:18 PM
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No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!

Well, you should understand 'printing power' in a broader sense. Even if some governments don't print their own currencies, they will exert their powers on capital flows no matter which currencies they choose to use. Bitcoin poses a serious challenge to this end.

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October 29, 2013, 03:25:30 PM
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I remember an article way back about some african country being a  prime canadate to have widespread bitcoin adoption. I think it was Kenya. I writing via a mobile device so I can source that article you for you but thats my 0.002BTC's

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BitcoinWalker
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October 29, 2013, 05:01:34 PM
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I remember an article way back about some african country being a  prime canadate to have widespread bitcoin adoption. I think it was Kenya. I writing via a mobile device so I can source that article you for you but thats my 0.002BTC's
Sounds like Somalia could go first. Pirates in Somalia could then demand ransoms in Bitcoin  Cool

MAbtc
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October 29, 2013, 06:18:00 PM
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No sovereign government will give up their right to print money. That's the type of thing that governments don't do -- it is virtually their greatest power.
hayek
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October 29, 2013, 06:23:56 PM
 #18

Stop thinking in terms of countries.

Bitcoin is much bigger. Where we are going we don't need countries.
cr1776
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October 29, 2013, 07:38:32 PM
 #19

Just a point of interest: Panama does not have a central bank.  So they do not have that entity to protect.

(e.g.  http://mises.org/daily/2533   )

Well it's not going to be like that. There are central banks at each country regulating the currency and inflation rates. And it would make their constitution void if they'd do that. But it could be used by the citizens as a secondary if not primary currency. Also you might want to study cambodia, they're using US Dollars in street shops and using their own currency for the small change. It could be similar to that.
cointraffic
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October 30, 2013, 09:37:55 AM
 #20

No sovereign government will give up their right to print money. That's the type of thing that governments don't do -- it is virtually their greatest power.
Well some countries don't have the ability to print money already. But before any country will consider switching to BTC many years will pass.
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