A country backed by [btc] instead of fiat ... that would be something ...

[mewhoyou]

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

[Vessko]

The economy of such a country would crash faster than you can sneeze.

Just imagine. A government that cannot get out of debt by devaluing it, that cannot avoid paying it, and the cost of this debt keeps raising. You get Cyprus on steroids.

Bitcoin is suitable only as a free market currency. As in "freely chosen by the individual participants", when every market participant does his own economic calculation and decides for himself whether it is worthwhile to use Bitcoin as a currency or not. Any attempt to impose it on the economy with a government degree would result in a disaster worse than the imposition of an inflationary fiat currency.

[Amph]

indipendent small country, like the one created by one man, could have this easily i think

[Q7]

A country would not accept it *simply* because they can't control the currency. What a country needs is a fiat paper which they can print when they want at certain conditions in order to manage and control the economy. Like for example, indicators in trade surplus, employment and such. Introducing bitcoin which they have no power to meddle with means it will not work.

[newIndia]

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

I think, a lot of small countries, where tourism is the main business, will soon be open for cryptocurrencies.

[ikydesu]

A country would not accept it *simply* because they can't control the currency. What a country needs is a fiat paper which they can print when they want at certain conditions in order to manage and control the economy. Like for example, indicators in trade surplus, employment and such. Introducing bitcoin which they have no power to meddle with means it will not work.

I'm not sure if a country adopt bitcoin as the main currency will make a citizen prosperous, because being sued to understand about crypto and ect. And they economy will under control.

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

I think, a lot of small countries, where tourism is the main business, will soon be open for cryptocurrencies.

This is a good idea.

[LiteCoinGuy]

reminds me of

http://cointelegraph.com/news/112277/let-the-bit-drop-coinapult-sets-to-transform-a-caribbean-island-into-bitcoin-test-ground?utm_source=CoinTelegraph&utm_campaign=9d91eb7f30-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e86993e3e8-9d91eb7f30-192497013

[Elwar]

Imagine a small no name country with a $1 billion M1 switching over to BTC and then the price jumps to 100x over the course of a few years.

I ran for my water company's (our company was a co-op) board of directors back when BTC was worth under $10, one thing I was going to implement was accepting Bitcoin as payment (the only way to pay was to go to the water company office with cash or a check). Their annual budget was under $1 million. Imagine if they had gotten $10,000 worth of payments in Bitcoin that year. They would have doubled their budget just from those few payments.

Aside from price though, a country could be transparent with their spending and be assured that their money was going toward projects that they said they were going toward.

[randy8777]

why would any government have bitcoin as main currency when they can't control it and can't create new fiat when needed. that's how governments work. that simply won't change.

[TrailingComet]

Indeed, I am waiting for that to happen. A country like Estonia is the likeliest first adopter...

[coa032]

Well we can contact and give advice about Bitcoin to "government" of those "countries"
http://en.wikipedia.org/wiki/List_of_micronations

[QuestionAuthority]

Imagine a small no name country with a $1 billion M1 switching over to BTC and then the price jumps to 100x over the course of a few years.

I ran for my water company's (our company was a co-op) board of directors back when BTC was worth under $10, one thing I was going to implement was accepting Bitcoin as payment (the only way to pay was to go to the water company office with cash or a check). Their annual budget was under $1 million. Imagine if they had gotten $10,000 worth of payments in Bitcoin that year. They would have doubled their budget just from those few payments.

Aside from price though, a country could be transparent with their spending and be assured that their money was going toward projects that they said they were going toward.

That's the reason a country would never accept btc as legal tender. Governments don't want their subjects to know where the money is going.

[mewhoyou]

well, if a country to make it a legal tender then BTC becomes a legal tender and therefore mention as a fiat currency. Ideas to bring this BTC to mainstream. Saw a documentary of a floating man made island for the rich and famous.

[cyberpinoy]

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

If anyone could ever somehow get this plan to work you just secured a real demand for bitcins literally, and for once I could actually see bitcoins hitting astronomical numbers in value especially if that country has something special it exports. Within the first few months of this happening everyone involved in bitcoin would literally be rich.

[Towlie]

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

The only way we'll know if it will ever work is if it happens. Maybe one country will adopt it as their defacto currency out of necessity if their economy collapses etc. It would be an interesting experiment for sure.

[mewhoyou]

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

The only way we'll know if it will ever work is if it happens. Maybe one country will adopt it as their defacto currency out of necessity if their economy collapses etc. It would be an interesting experiment for sure.

RuSSiA would be a good bet

[botany]

We would need Bitcoin to attain some stability in terms of purchasing power before anything like this can be attempted.

[Febo]

The economy of such a country would crash faster than you can sneeze.

Just imagine. A government that cannot get out of debt by devaluing it, that cannot avoid paying it, and the cost of this debt keeps raising. You get Cyprus on steroids.

Bitcoin is suitable only as a free market currency. As in "freely chosen by the individual participants", when every market participant does his own economic calculation and decides for himself whether it is worthwhile to use Bitcoin as a currency or not. Any attempt to impose it on the economy with a government degree would result in a disaster worse than the imposition of an inflationary fiat currency.

If you know you cant devalvate you would start handling your income more wisely. Now so many governments dont, and their debt just go up, with sole reason to stay governing.
Who thinks that Bitcoin cant be used as main currency, just dont see the main value of Bitcoin. Bitcoin will take power away from those that so far print money. It will change world.

[JessicaSe]

i don't think any country will accept bitcoin as their official currency untill it gets price stability
right now it seems like a commodity or investment opportunity
it need to be stable to see more growth

[LiteCoinGuy]

they could issue their own digital money pegged to bitcoin with sidechains for example. maybe in 10-20 years