I just finished reading Jeff Hester's article about BitCoins entitled [url http://techcrunch.com/2011/05/21/the-bitcoin-experiment/
]"Make.Money.Slow : The Bitcoin Experiment"[/url]. While he did not have a lot of good things to say about BitCoins, he did highlight a potential opportunity for BitCoins.
"…but the developing world is another matter. Consider Zimbabwe, recently plagued by hyperinflation so rampant that when I was last there prices doubled every few weeks and gasoline could only be purchased on the black market with hard currency. They’ve since given up and simply adopted foreign currency wholesale. Meanwhile, mobile electronic payments are taking off in a big way all over sub-Saharan Africa. It isn’t much of a stretch to imagine Zimbabwe in ten years’ time—or a whole group of developing nations with a history of crippling inflation—adopting a new currency that is independent, incorruptible, and anti-inflationary by design. In short, something a whole lot like Bitcoin. No, it isn’t the future, but it just may point the way."
What do you think? BitCoin is no where near 100% inflation per week. It is more like 50% per year at the moment. Does anyone have IP maps of where BitCoin mining is happening, or does anyone have contacts in Zimbabwe? I cannot get a feel for the infrastructure in this country. Are smart phones? Are online computers readily available?
If Zimbabwe is not a good target, let's keep our eye's open for any other countries that may need an currency replacement. We may also find friends in South American countries that are attempting to ward off IMF and the Federal Reserve.
- List recent problems with hyperinflation.