Third world countries adopting Bitcoin instead of their own fiat currencies

[Mikerogers]

Looking at a few of the worst fiat currencies in the world, one could examine countries like Vietnam, Somalia, or Zimbabwe. Let’s not forget the numerous African countries like Sao Tome and Principe (Some of these countries are unheard of!) amongst many other African countries.

Many countries like the ones listed above simply create currencies for the sake of it, regardless of their weak and unstable economies. These currencies grow weaker as time passes on and investors tend to shy away from even touching them.

While there’s only 2B people out of the 7B people in the world who have access to the internet, one should keep in mind that the number is gradually increasing. As internet use increases and people frequent the online world more, many will flock to virtual currencies like Bitcoin as opposed to their own national currency.

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What do you guys think will happen? Do you see countries with weaker currencies adopting cryptocurrencies like Bitcoin as their infrastructure grows? It could provide an advantage for a country like Zimbabwe which primarily uses the US dollar.

[Ruthful]

If there is any success here, it would tremendously boost Bitcoin's  reputation and aids greatly in cementing its mass adoption, but I'm just being Captain Obvious here.

[OROBTC]

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@ Mikerogers

My guess is that no Third World country will adopt Bitcoin anytime soon. 

No way Peru does, they have many who cannot read in remote locations.  And Peru did go through a bout or two of hyperinflation in the 1980s, I still have my 1,000,000 intis banknote around somewhere.

My much more limited experience with other Third World countries (Costa Rica and Egypt) would lead me to think that there is little chance that any of them would either.

Slightly more probably (though still highly unlikely, IMO) would be a smaller developed country that gets into trouble...  But, I doubt that the Central Banksters will give up their privileges of printing money...

[Obstinatus]

In order to make inroads in Africa it will need to compete with M-Pesa as it is already heavily used in Africa. This means an app that works with super rudimentary phones will have to be created and somehow distributed via a wireless network that doesn't want the competition.

[hellscabane]

I don't think that third world countries are necessarily going to "adopt" bitcoin, but I think there can be strong inroads for usage of bitcoins as being the primary vehicle for transferring remittances in those third world countries. I mean, the fees Western Union charges is quite ridiculous. But there's a lot more in the way of infrastructure that needs to happen before this can be the case.

[bitcambodia]

Why would any country's government choose to forfeit its own power by adopting Bitcoin?

And as for the citizens of developing countries, Bitcoin is way too impractical for the types of transactions being conducted.  It may happen one day, but I don't expect villagers in Cambodia to be paying for bananas with smart-phones any time soon.

[jonald_fyookball]

If it happens, increases incentive for powerful entity to attempt a 51% attack.

[jc01480]

Just wait for the big stock market "correction".  You should see wider adoption then.

[bryant.coleman]

Most of the third world people are not tech savvy. Unfortunately, due to the proliferance of thieves and con-masters, the crypto-currency is currently risk-free only for the tech-savvy. Also, they might need devices such as smartphones to carry the money around.

[Peter R]

If it happens, increases incentive for powerful entity to attempt a 51% attack.

Can you explain your logic here, Jonald?  I was thinking that the more groups that adopt bitcoin, the more robust the mining network would be (they would all be incentivized to provide hash power to mitigate the threat of any particular (and malicious) group accumulating 51%).

[Siegfried]

Why would any country's government choose to forfeit its own power by adopting Bitcoin?

And as for the citizens of developing countries, Bitcoin is way too impractical for the types of transactions being conducted.  It may happen one day, but I don't expect villagers in Cambodia to be paying for bananas with smart-phones any time soon.

Any shit government in the world could drastically strengthen its hold on power and ability to do things if it adopted Bitcoin. The peasants wouldn't have to use Bitcoin in their daily lives, but it could be used for larger transactions of government and business. It would be a great improvement on using their shit fiat currency.

[Swordsoffreedom]

I don't think that third world countries are necessarily going to "adopt" bitcoin, but I think there can be strong inroads for usage of bitcoins as being the primary vehicle for transferring remittances in those third world countries. I mean, the fees Western Union charges is quite ridiculous. But there's a lot more in the way of infrastructure that needs to happen before this can be the case.

I agree infrastructure remains a challenge to be solved but once the proper inroads are made adoption may accelerate quickly