The Danger of Local Economy.

[ven7net]

According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..

Bitcoin is taking over the internet for online transaction, therefore, most of  the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

I don't think BTC will be able to weaken the local currencies of developing and other countries. The fact is that BTC takes a long time to carry out transactions and high commissions, which in turn will not be able to ensure the work of trade and other areas. BTC is currently good as a means of accumulating wealth or just to make money, but unfortunately not for using it instead of local currencies. Moreover, the price of BTC is very volatile, which is also not suitable for use as a substitute for local currency.

[Hispo]

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Please tell me - how is the issue of the loss of funds associated with network commissions resolved, with the regular purchase of inexpensive goods / food? According to my calculations, if the payment acceptance scheme works on standard terms, where there is a commission. Moreover, the level of commission can be commensurate with the cost of the transaction itself. Taking the same bread, vegetables, eggs - the price is not high, the transaction fee is noticeable, which gives rise to the problem of losing personal funds. Or has everyone included the commission in the price of the goods?

Merry christmas!

I am happy to dispell your doubts once more.
Firstly, you are right, for food and small purchases the fees would be significant, as an example, a kilogram of maize flour here costs about 1$, so paying on chain is not a good idea.

For these cases people do not use on-chain transactions, they use instead wallets or exchanges like Binance, instead, which allow in-exchange transactions without fees. Binance is becoming quite popular here, so are other exchanges, people mostly are using these for those micro-payments you describe and (hopefully) the main stack stays in a non-custodial wallet.

See: https://pay.binance.com/en

[fullhdpixel]

Honestly, with some developing countries, their local currencies are more or less meaningless, and all important transactions are done through dollars, euro's or renminbi. So, mixing that in with cryptocurrencies is not that much of a strech. As far as it becoming the only currency? I highly doubt it because all serious investments in the country or serious projects being paid are being paid through other major currencies.

I have to say local economies are getting even worse but the big nations are getting a bigger gap each year as well. We had slavery and death and so much misery for the lower class while the upper class had super fun up until 100 years ago or so, then we started to grow a bit better, that crash during late 20's caused things to get a little better, and until around 60's or so things looked nice.

Around early 70's things started to pick up, and by the time 80's came with the cold war and all the gap started to look like there is a growing gap, not a huge one yet but the gap was growing between rich and poor instead of closing. And now we have a huge gap once again, not that we are slaves anymore, but when you can't pay rent, you can't go to the doctors without getting broke, when your cancer costs are as expensive as your house value, then I am sorry but that is not really the freedom we were expecting when slavery abolished, it is really only a whip away from being slavery again.

[DrBeer]

Merry christmas!
I am happy to dispell your doubts once more.
Firstly, you are right, for food and small purchases the fees would be significant, as an example, a kilogram of maize flour here costs about 1$, so paying on chain is not a good idea.

For these cases people do not use on-chain transactions, they use instead wallets or exchanges like Binance, instead, which allow in-exchange transactions without fees. Binance is becoming quite popular here, so are other exchanges, people mostly are using these for those micro-payments you describe and (hopefully) the main stack stays in a non-custodial wallet.

See: https://pay.binance.com/en

Merry Christmas to you and your family!
And also Happy New Year - may it bring you and your family a solution to problems, prosperity, health and good luck!

Thanks for the answer ! And then for me the "arithmetic" component scared a little - it seems like you pay for food, and you pay even more for the commission. And the type of joint wholesale purchases - is this not practiced? You can also buy flour or some kind of products that are consumed regularly and in significant quantities in "small wholesale", saving on commission.

[LUCKMCFLY]

You have to start from the beginning, if a new, nascent economy has weaknesses and vulnerabilities, not only BTC can make it stagger, any type of financial act can do it, those who take hold under a strong economy and that have good support should not be afraid or fears for the BTC, because then it means that there is no harmony in the economy or economy model that is implemented, if there are vulnerabilities with anything there may be a crash. For old economies with high inflation, the solution is BTC, and to improve the economy it is best to take BTC into account, just as they do in El Salvador.